⚠ 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.
DRREDDY - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.1
| Stock Code | DRREDDY | Market Cap | 98,683 Cr. | Current Price | 1,182 ₹ | High / Low | 1,380 ₹ |
| Stock P/E | 21.3 | Book Value | 378 ₹ | Dividend Yield | 0.68 % | ROCE | 25.8 % |
| ROE | 20.3 % | Face Value | 1.00 ₹ | DMA 50 | 1,232 ₹ | DMA 200 | 1,246 ₹ |
| Chg in FII Hold | -2.35 % | Chg in DII Hold | 2.45 % | PAT Qtr | 90.6 Cr. | PAT Prev Qtr | 387 Cr. |
| RSI | 39.0 | MACD | -11.7 | Volume | 6,00,759 | Avg Vol 1Wk | 16,31,181 |
| Low price | 1,020 ₹ | High price | 1,380 ₹ | PEG Ratio | 0.44 | Debt to equity | 0.13 |
| 52w Index | 45.1 % | Qtr Profit Var | -89.3 % | EPS | 55.6 ₹ | Industry PE | 29.1 |
📊 Technical Analysis
- Chart Patterns: Stock has corrected from 1,380 ₹ high to 1,182 ₹, showing bearish momentum but holding above 52-week low (1,020 ₹).
- Moving Averages: Current price is below both 50 DMA (1,232 ₹) and 200 DMA (1,246 ₹), confirming weakness.
- RSI: 39.0 — near oversold zone, potential for short-term bounce.
- MACD: -11.7 — bearish crossover, momentum weak.
- Bollinger Bands: Price near lower band, oversold conditions visible.
- Volume Trends: Current volume (6.0L) is far below 1-week average (16.3L), showing reduced participation.
📈 Momentum & Signals
- Short-term Momentum: Weak, but oversold RSI suggests possible rebound.
- Support Levels: Strong support near 1,150–1,170 ₹.
- Resistance Levels: Immediate resistance at 1,232 ₹ (50 DMA), next at 1,246 ₹ (200 DMA).
- Optimal Entry Zone: 1,150–1,180 ₹ (near support).
- Optimal Exit Zone: 1,230–1,250 ₹ (near DMA resistances).
- Trend Status: Stock is consolidating with bearish undertone.
✅ Positive
- Strong ROCE (25.8%) and ROE (20.3%) indicate efficient capital use.
- Low debt-to-equity (0.13) ensures financial stability.
- PEG ratio of 0.44 suggests attractive valuation relative to growth.
⚠️ Limitation
- Stock P/E (21.3) is lower than industry P/E (29.1), but earnings volatility reduces attractiveness.
- Price trading below both 50 DMA and 200 DMA shows weak momentum.
- Volume participation is low, limiting breakout potential.
📉 Company Negative News
- Quarterly PAT dropped sharply (90.6 Cr vs 387 Cr), a decline of -89.3%.
- FII holding decreased by -2.35%, showing reduced foreign investor confidence.
📈 Company Positive News
- DII holding increased by 2.45%, showing strong domestic institutional support.
- EPS of 55.6 ₹ provides earnings visibility despite recent profit decline.
🏭 Industry
- Industry P/E at 29.1 is higher than DRREDDY, suggesting relative undervaluation.
- Pharmaceutical sector remains resilient, supported by global demand and healthcare expansion.
📝 Conclusion
- DRREDDY is in a consolidation phase with bearish undertone.
- Best strategy: Accumulate cautiously near support (1,150–1,180 ₹) and book profits near resistance (1,230–1,250 ₹).
- Long-term investors may hold given strong fundamentals and attractive PEG ratio, but short-term traders should be cautious due to weak momentum and sharp profit decline.