⚠ 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.
ERIS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.1
| Stock Code | ERIS | Market Cap | 19,217 Cr. | Current Price | 1,387 ₹ | High / Low | 1,910 ₹ |
| Stock P/E | 68.2 | Book Value | 203 ₹ | Dividend Yield | 0.54 % | ROCE | 6.86 % |
| ROE | 3.02 % | Face Value | 1.00 ₹ | DMA 50 | 1,498 ₹ | DMA 200 | 1,540 ₹ |
| Chg in FII Hold | -0.36 % | Chg in DII Hold | 0.95 % | PAT Qtr | 150 Cr. | PAT Prev Qtr | 100.0 Cr. |
| RSI | 37.5 | MACD | -49.2 | Volume | 14,653 | Avg Vol 1Wk | 74,281 |
| Low price | 1,097 ₹ | High price | 1,910 ₹ | PEG Ratio | -1.57 | Debt to equity | 0.79 |
| 52w Index | 35.7 % | Qtr Profit Var | 432 % | EPS | 20.7 ₹ | Industry PE | 29.1 |
📈 Technical Analysis
- Chart Patterns: Stock corrected from 1,910 ₹ highs and is consolidating near 1,387 ₹, showing weakness but holding above 1,097 ₹ support.
- Moving Averages: Current price (1,387 ₹) is below both 50 DMA (1,498 ₹) and 200 DMA (1,540 ₹), confirming short-term bearishness.
- RSI: At 37.5, the stock is close to oversold territory, suggesting potential for a rebound.
- MACD: Negative (-49.2), indicating bearish momentum persists.
- Bollinger Bands: Price is near the lower band, signaling oversold conditions but risk of breakdown.
- Volume Trends: Current volume (14,653) is significantly lower than 1-week average (74,281), showing weak participation.
📊 Momentum & Signals
- Short-Term Momentum: Weak, but oversold RSI could trigger a bounce.
- Support Zones: 1,350 ₹ (near-term), 1,097 ₹ (major support).
- Resistance Zones: 1,498 ₹ (50 DMA), 1,540 ₹ (200 DMA), 1,600 ₹ (trendline resistance).
- Entry Zone: 1,350–1,380 ₹ if RSI stabilizes.
- Exit Zone: 1,498–1,540 ₹ on rebound; strict stop-loss below 1,350 ₹.
- Trend Status: Stock is bearish but showing signs of consolidation near support.
✅ Positive
- Quarterly PAT improved (150 Cr. vs 100 Cr.), showing strong earnings recovery.
- DII holdings increased (+0.95 %), showing domestic institutional support.
- EPS at 20.7 ₹ supports earnings strength.
- Dividend yield at 0.54 % provides modest income support.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA indicates weak technical strength.
- High P/E (68.2) compared to industry PE (29.1) suggests premium valuation.
- Low ROCE (6.86 %) and ROE (3.02 %) highlight weak capital efficiency.
- Debt-to-equity ratio at 0.79 is relatively high compared to peers.
📉 Company Negative News
- FII holdings decreased (-0.36 %), showing reduced foreign investor confidence.
- PEG ratio (-1.57) indicates valuation concerns relative to growth.
📈 Company Positive News
- Quarterly profit variance (+432 %) highlights strong operational improvement.
- DII holdings increased (+0.95 %), showing domestic institutional confidence.
🏭 Industry
- Industry PE at 29.1 is much lower than company PE (68.2), suggesting ERIS trades at a premium.
- Pharmaceutical sector outlook remains positive with demand recovery potential.
🔎 Conclusion
- ERIS is in a bearish consolidation phase after correction, with oversold RSI and weak MACD.
- Short-term traders may consider entry near 1,350–1,380 ₹ with exit around 1,498–1,540 ₹.
- Long-term investors should be cautious due to premium valuations, weak ROCE/ROE, and high debt levels, despite recent profit recovery.