ERIS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| Stock Code | ERIS | Market Cap | 18,328 Cr. | Current Price | 1,323 ₹ | High / Low | 1,910 ₹ |
| Stock P/E | 61.7 | Book Value | 203 ₹ | Dividend Yield | 0.56 % | ROCE | 6.86 % |
| ROE | 3.02 % | Face Value | 1.00 ₹ | DMA 50 | 1,372 ₹ | DMA 200 | 1,460 ₹ |
| Chg in FII Hold | -0.46 % | Chg in DII Hold | 0.04 % | PAT Qtr | 17.0 Cr. | PAT Prev Qtr | 150 Cr. |
| RSI | 43.4 | MACD | -2.66 | Volume | 1,23,346 | Avg Vol 1Wk | 1,51,475 |
| Low price | 1,200 ₹ | High price | 1,910 ₹ | PEG Ratio | -1.42 | Debt to equity | 0.79 |
| 52w Index | 17.3 % | Qtr Profit Var | 853 % | EPS | 20.8 ₹ | Industry PE | 30.1 |
📈 Chart Patterns: Price is trading below both 50 DMA (1,372 ₹) and 200 DMA (1,460 ₹), showing weakness. Trendlines suggest sideways consolidation with support near 1,300 ₹ and resistance around 1,360–1,380 ₹.
📊 Moving Averages: Current price (1,323 ₹) below both DMAs indicates bearish undertone and lack of momentum strength.
📉 RSI: At 43.4, RSI is weak, leaning towards bearish sentiment.
📊 MACD: Negative at -2.66, confirming bearish crossover and short-term weakness.
📉 Bollinger Bands: Price near lower band, suggesting weakness but also potential for short-term rebound from oversold levels.
📊 Volume Trends: Current volume (1.23L) below 1-week average (1.51L), showing reduced participation and lack of accumulation.
🎯 Momentum Signals: Bearish. MACD and RSI confirm weakness, with volume supporting the downtrend.
💹 Entry Zone: 1,300–1,320 ₹ (support levels).
💹 Exit Zone: 1,360–1,380 ₹ (resistance levels).
📌 Trend Status: Consolidating with bearish bias.
Positive
- EPS of 20.8 ₹ provides earnings visibility.
- Dividend yield at 0.56% adds shareholder value.
- 52-week performance (+17.3%) shows sector participation.
Limitation
- Price below both 50 DMA and 200 DMA indicates technical weakness.
- Negative MACD (-2.66) confirms bearish momentum.
- High P/E (61.7) compared to industry PE (30.1) suggests overvaluation.
- Weak ROE (3.02%) and ROCE (6.86%) highlight poor capital efficiency.
- Debt-to-equity ratio at 0.79 indicates high leverage.
Company Negative News
- Quarterly PAT dropped sharply (17 Cr. vs 150 Cr.).
- FII holdings reduced (-0.46%), showing foreign investor caution.
Company Positive News
- DII holdings increased slightly (+0.04%), showing domestic support.
- Quarterly profit variation (+853%) reflects volatility but potential recovery.
Industry
- Pharma sector remains resilient with industry PE at 30.1, lower than ERIS’s P/E, highlighting valuation premium.
- Sector supported by healthcare demand but competitive pressures remain.
Conclusion
⚖️ ERIS is consolidating with bearish bias, reflected in negative MACD, weak RSI, and price below both DMAs. Fundamentals remain weak with poor ROE, ROCE, and high debt. Best suited for cautious short-term trades within entry (1,300–1,320 ₹) and exit (1,360–1,380 ₹) zones, while long-term investors should avoid fresh positions until profitability improves.