ERIS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.7
| Stock Code | ERIS | Market Cap | 18,696 Cr. | Current Price | 1,349 ₹ | High / Low | 1,910 ₹ |
| Stock P/E | 73.6 | Book Value | 231 ₹ | Dividend Yield | 0.54 % | ROCE | 11.1 % |
| ROE | 8.89 % | Face Value | 1.00 ₹ | DMA 50 | 1,369 ₹ | DMA 200 | 1,445 ₹ |
| Chg in FII Hold | -0.46 % | Chg in DII Hold | 0.04 % | PAT Qtr | -8.60 Cr. | PAT Prev Qtr | 17.0 Cr. |
| RSI | 48.0 | MACD | -0.32 | Volume | 2,39,144 | Avg Vol 1Wk | 2,50,891 |
| Low price | 1,200 ₹ | High price | 1,910 ₹ | PEG Ratio | -5.44 | Debt to equity | 0.66 |
| 52w Index | 21.0 % | Qtr Profit Var | -128 % | EPS | 17.6 ₹ | Industry PE | 31.6 |
Chart & Trend Analysis:
ERIS is trading at ₹1,349, below both its 50 DMA (₹1,369) and 200 DMA (₹1,445), reflecting medium-term weakness. RSI at 48.0 indicates neutral momentum, while MACD at -0.32 shows mild bearish crossover. Bollinger Bands are moderately wide, suggesting consolidation with volatility. Current volume (2.39L) is slightly below the weekly average (2.50L), showing reduced participation.
Momentum Signals:
- RSI near 50 signals neutral momentum with limited upside.
- MACD negative, confirming short-term weakness.
- Resistance zones: ₹1,370–1,380 (50 DMA), ₹1,440–1,450 (200 DMA).
- Support zones: ₹1,320–1,330 immediate, deeper support at ₹1,200 (52-week low).
- Trend status: Consolidating with bearish bias; reversal unlikely until price sustains above 200 DMA.
Entry Zone: ₹1,320–1,330 (risk-managed accumulation)
Exit Zone: ₹1,370–1,450 (profit booking zone)
Stop-Loss: Below ₹1,200
Positive
- Dividend yield of 0.54% provides income potential.
- Book value at ₹231 supports valuation floor.
- ROCE (11.1%) and ROE (8.89%) show moderate efficiency.
Limitation
- Stock P/E (73.6) is far higher than industry average (31.6), indicating overvaluation.
- Weak profitability with declining PAT (-₹8.6 Cr vs ₹17 Cr previous quarter).
- PEG ratio (-5.44) highlights poor earnings growth outlook.
- Debt-to-equity ratio at 0.66 is relatively high compared to peers.
Company Negative News
- Quarterly profit variation (-128%) shows severe earnings volatility.
- FII holdings decreased (-0.46%), reflecting reduced foreign investor confidence.
Company Positive News
- DII holdings increased slightly (+0.04%), showing cautious domestic support.
- EPS at ₹17.6 provides earnings visibility despite recent weakness.
Industry
- Industry PE at 31.6 is much lower than ERIS’s P/E, suggesting premium valuation.
- Pharma sector remains resilient with steady demand and export opportunities.
Conclusion
ERIS is consolidating below key moving averages with weak momentum signals. Entry near ₹1,320–1,330 offers limited risk-reward, with exits around ₹1,370–1,450. Fundamentals remain weak with high debt, poor earnings, and premium valuation. Suitable only for cautious short-term trades; long-term investors should wait for earnings recovery before entry.
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