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EMCURE - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.5

Last Updated Time : 03 Feb 26, 05:12 pm

Technical Rating: 3.5

Stock Code EMCURE Market Cap 27,899 Cr. Current Price 1,472 ₹ High / Low 1,586 ₹
Stock P/E 64.4 Book Value 170 ₹ Dividend Yield 0.20 % ROCE 13.5 %
ROE 11.6 % Face Value 10.0 ₹ DMA 50 1,455 ₹ DMA 200 1,369 ₹
Chg in FII Hold 0.30 % Chg in DII Hold 1.74 % PAT Qtr 118 Cr. PAT Prev Qtr 125 Cr.
RSI 50.7 MACD 9.39 Volume 1,06,370 Avg Vol 1Wk 1,39,844
Low price 889 ₹ High price 1,586 ₹ PEG Ratio -4.76 Debt to equity 0.50
52w Index 83.6 % Qtr Profit Var 35.3 % EPS 22.7 ₹ Industry PE 29.1

📈 Technical Analysis

  • Chart Patterns: Stock has rallied from 889 ₹ lows to 1,586 ₹ highs and is consolidating near 1,472 ₹, showing resilience after recent correction.
  • Moving Averages: Current price (1,472 ₹) is above 50 DMA (1,455 ₹) and 200 DMA (1,369 ₹), indicating bullish long-term trend with short-term stability.
  • RSI: At 50.7, the stock is neutral, suggesting balanced momentum without overbought or oversold signals.
  • MACD: Positive (9.39), indicating bullish momentum building.
  • Bollinger Bands: Price is near the mid-band, suggesting consolidation with potential breakout.
  • Volume Trends: Current volume (1,06,370) is lower than 1-week average (1,39,844), showing reduced participation in recent moves.

📊 Momentum & Signals

  • Short-Term Momentum: Neutral to positive, supported by MACD crossover.
  • Support Zones: 1,455 ₹ (near-term), 1,369 ₹ (major support at 200 DMA).
  • Resistance Zones: 1,500 ₹ (near resistance), 1,586 ₹ (recent high).
  • Entry Zone: 1,450–1,470 ₹ if RSI remains stable.
  • Exit Zone: 1,500–1,580 ₹ on rebound; strict stop-loss below 1,450 ₹.
  • Trend Status: Stock is consolidating with bullish undertones, likely preparing for breakout.

✅ Positive

  • Strong fundamentals with ROCE (13.5 %) and ROE (11.6 %) showing profitability.
  • EPS at 22.7 ₹ supports earnings strength.
  • Dividend yield at 0.20 % provides modest income support.
  • Stock trading above both 50 DMA and 200 DMA confirms long-term bullish trend.

⚠️ Limitation

  • High P/E (64.4) compared to industry PE (29.1) suggests premium valuation.
  • Debt-to-equity ratio at 0.50 is relatively high compared to peers.
  • PEG ratio (-4.76) indicates valuation concerns relative to growth.

📉 Company Negative News

  • Quarterly PAT declined (118 Cr. vs 125 Cr.), showing earnings pressure.
  • High valuation multiples may limit upside in near term.

📈 Company Positive News

  • DII holdings increased (+1.74 %), showing strong domestic institutional support.
  • Quarterly profit variance (+35.3 %) highlights operational improvement year-on-year.
  • FII holdings also increased (+0.30 %), showing foreign investor confidence.

🏭 Industry

  • Industry PE at 29.1 is much lower than company PE (64.4), suggesting EMCURE trades at a premium.
  • Pharmaceutical sector outlook remains positive with strong demand and growth potential.

🔎 Conclusion

  • EMCURE is in a consolidation phase with bullish undertones, supported by positive MACD and neutral RSI.
  • Short-term traders may consider entry near 1,450–1,470 ₹ with exit around 1,500–1,580 ₹.
  • Long-term investors may hold due to strong fundamentals and sector outlook, but should be cautious of premium valuations and debt levels.

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