⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
DIVISLAB - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | DIVISLAB | Market Cap | 1,58,227 Cr. | Current Price | 5,960 ₹ | High / Low | 7,078 ₹ |
| Stock P/E | 62.9 | Book Value | 578 ₹ | Dividend Yield | 0.51 % | ROCE | 20.6 % |
| ROE | 15.6 % | Face Value | 2.00 ₹ | DMA 50 | 6,311 ₹ | DMA 200 | 6,233 ₹ |
| Chg in FII Hold | 0.69 % | Chg in DII Hold | -0.50 % | PAT Qtr | 696 Cr. | PAT Prev Qtr | 557 Cr. |
| RSI | 38.9 | MACD | -105 | Volume | 1,46,902 | Avg Vol 1Wk | 3,24,103 |
| Low price | 4,942 ₹ | High price | 7,078 ₹ | PEG Ratio | -6.84 | Debt to equity | 0.01 |
| 52w Index | 47.7 % | Qtr Profit Var | 34.4 % | EPS | 94.7 ₹ | Industry PE | 29.1 |
📊 Technical Analysis
- Chart Patterns: Stock has corrected from 7,078 ₹ high to 5,960 ₹, showing weakness but holding above 52-week low (4,942 ₹).
- Moving Averages: Current price is below both 50 DMA (6,311 ₹) and 200 DMA (6,233 ₹), indicating bearish bias.
- RSI: 38.9 — near oversold zone, potential for short-term bounce.
- MACD: -105 — bearish crossover, momentum weak.
- Bollinger Bands: Price near lower band, oversold conditions visible.
- Volume Trends: Current volume (1.47L) is below 1-week average (3.24L), showing reduced participation.
📈 Momentum & Signals
- Short-term Momentum: Weak, but oversold RSI suggests possible rebound.
- Support Levels: Strong support near 5,000 ₹.
- Resistance Levels: Immediate resistance at 6,311 ₹ (50 DMA), next at 6,233–6,400 ₹ (200 DMA zone).
- Optimal Entry Zone: 5,800–5,950 ₹ (near support).
- Optimal Exit Zone: 6,250–6,350 ₹ (near DMA resistances).
- Trend Status: Stock is consolidating with bearish undertone.
✅ Positive
- Strong quarterly profit growth (696 Cr vs 557 Cr, +34.4%).
- High ROCE (20.6%) and ROE (15.6%) indicate solid efficiency.
- Low debt-to-equity (0.01) ensures financial stability.
- EPS of 94.7 ₹ provides strong earnings visibility.
⚠️ Limitation
- Stock P/E (62.9) is much higher than industry P/E (29.1), suggesting overvaluation.
- PEG ratio (-6.84) indicates poor growth-adjusted valuation.
- Price trading below both 50 DMA and 200 DMA shows weak momentum.
📉 Company Negative News
- DII holding decreased by -0.50%, showing reduced domestic institutional confidence.
- Stock has corrected significantly from 7,078 ₹ high to current 5,960 ₹.
📈 Company Positive News
- FII holding increased by 0.69%, showing foreign investor confidence.
- Quarterly profit growth of 34.4% indicates strong operational performance.
🏭 Industry
- Industry P/E at 29.1 is much lower than DIVISLAB, highlighting relative overvaluation.
- Pharmaceutical sector remains resilient with global demand for APIs and formulations.
📝 Conclusion
- DIVISLAB is in a consolidation phase with bearish undertone.
- Best strategy: Accumulate cautiously near support (5,800–5,950 ₹) and book profits near resistance (6,250–6,350 ₹).
- Long-term investors may hold given strong fundamentals and profit growth, but valuation remains stretched compared to industry peers.