CAPLIPOINT - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.4

📈 Technical Analysis

• Chart Patterns: Stock is trading well below its 52-week high (2,641 ₹), showing weakness and correction from peak levels.
• Moving Averages: Current price (1,931 ₹) is below both 50 DMA (1,970 ₹) and 200 DMA (2,010 ₹), confirming bearish bias.
• RSI: At 43.7, RSI is weak, suggesting limited buying strength and potential oversold conditions.
• MACD: Negative (-10.2), showing bearish momentum and trend continuation.
• Bollinger Bands: Price is near the lower band, signaling weakness and possible short-term consolidation.
• Volume Trends: Current volume (30,932) is almost equal to 1-week average (31,016), indicating steady participation but no strong momentum shift.

🎯 Momentum & Trade Zones

• Support Levels: 1,900 ₹ (near-term support), 1,800 ₹ (strong support), 1,551 ₹ (52-week low).
• Resistance Levels: 1,970 ₹ (50 DMA), 2,010 ₹ (200 DMA), 2,100 ₹ (psychological resistance).
• Entry Zone: 1,900–1,930 ₹ (near support, favorable risk-reward).
• Exit Zone: 1,970–2,050 ₹ (near resistance/top band).
• Trend Status: Reversing downward, currently weak with bearish signals but oversold conditions may trigger short-term bounce.

✅ Positive

• Strong ROCE (28.6%) and ROE (22.0%) indicate efficient capital use.
• EPS of 46.0 ₹ supports earnings visibility.
• FII holdings increased (+0.35%), showing foreign investor confidence.
• Debt-free balance sheet (Debt-to-equity ratio 0.00) ensures financial stability.

⚠️ Limitation

• Stock P/E (42.0) is higher than industry average (30.6), suggesting premium valuation.
• PEG ratio of 1.91 indicates stretched valuation relative to growth.
• Quarterly PAT declined slightly (103 Cr. vs 85.9 Cr.), showing earnings pressure (-2.98%).
• Stock trading at only 34.8% of its 52-week range, reflecting underperformance.

📉 Company Negative News

• DII holdings decreased (-0.12%), showing reduced domestic institutional confidence.
• Quarterly profit decline indicates margin pressure.

📊 Company Positive News

• EPS of 46.0 ₹ highlights profitability despite recent earnings decline.
• FII stake increased, boosting investor sentiment.
• Company maintains strong balance sheet with zero debt.

🏭 Industry

• Industry P/E at 30.6, lower than Caplin Point’s valuation, suggesting premium pricing.
• Pharmaceutical sector benefiting from global demand and export opportunities, though competitive pressures remain.

📝 Conclusion

• Caplin Point is in a bearish phase, trading below key moving averages with weak momentum.
• Fundamentals show strong efficiency and debt-free status, but valuations are stretched and earnings have weakened.
• Optimal strategy: Accumulate cautiously near support (1,900–1,930 ₹) and book profits near resistance (1,970–2,050 ₹).
• Short-term outlook: Weak with possible rebound from oversold levels; long-term outlook depends on earnings recovery and valuation moderation.