EMCURE - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.3

📊 Technical Analysis

• Chart Patterns: Price (1,383 ₹) is exactly at 50 DMA (1,383 ₹) and above 200 DMA (1,332 ₹), showing consolidation with mild bullish bias.
• Moving Averages: Neutral to positive as price sustains above long-term average but struggles near short-term average.
• RSI: 49.2 → neutral zone, suggesting balanced momentum.
• MACD: 5.76 → bullish crossover, indicating short-term upward momentum.
• Bollinger Bands: Price near mid-band, showing consolidation with potential breakout if volume rises.
• Volume Trends: Current volume (35,654) is significantly below 1-week average (81,584), showing weak participation.

📈 Momentum & Signals

• Short-term Momentum: Mild bullish bias supported by MACD but limited by low volume.
• Support Zones: 1,350 ₹ (near-term), 1,300 ₹ (strong support), 1,200 ₹ (major support).
• Resistance Zones: 1,400 ₹ (near-term), 1,450 ₹ (psychological), 1,525 ₹ (recent high).
• Optimal Entry: 1,350–1,300 ₹ range on dips.
• Optimal Exit: 1,400–1,450 ₹ range unless breakout above 1,525 ₹.
• Trend Status: Stock is consolidating with mild bullish bias; reversal possible if price sustains above 1,400–1,450 ₹.

✅ Positive

• ROCE (13.5%) and ROE (11.6%) show moderate efficiency.
• DII holdings increased (+1.52%), showing strong domestic institutional confidence.
• Quarterly PAT stable at 118 Cr. vs 125 Cr., showing resilience.
• Debt-to-equity ratio of 0.50 indicates manageable leverage.

⚠️ Limitation

• High P/E (60.6) compared to industry PE (30.6), indicating stretched valuation.
• PEG ratio (-4.47) suggests poor growth prospects relative to valuation.
• Volume participation is weak, limiting breakout potential.

📉 Company Negative News

• Sequential PAT decline from 125 Cr. to 118 Cr. shows margin pressure.
• FII holdings increased only modestly (+0.43%), showing limited foreign investor confidence.

📈 Company Positive News

• DII holdings increased significantly, balancing weak FII flows.
• Quarterly profit variation (+35.3%) shows year-on-year improvement.
• Debt levels remain manageable, supporting financial stability.

🏭 Industry

• Industry PE at 30.6, much lower than company PE (60.6), suggesting Emcure trades at a premium.
• Pharmaceutical sector remains resilient with global demand supporting long-term growth.

🔎 Conclusion

• Stock is consolidating with mild bullish bias supported by MACD but limited by weak volume.
• Best entry near 1,350–1,300 ₹; exit near 1,400–1,450 ₹ unless breakout above 1,525 ₹.
• Long-term investors should be cautious due to stretched valuations and weak volume despite sector resilience and institutional support.