ERIS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.7
| Stock Code | ERIS | Market Cap | 18,041 Cr. | Current Price | 1,306 ₹ | High / Low | 1,910 ₹ |
| Stock P/E | 60.7 | Book Value | 203 ₹ | Dividend Yield | 0.56 % | ROCE | 6.86 % |
| ROE | 3.02 % | Face Value | 1.00 ₹ | DMA 50 | 1,400 ₹ | DMA 200 | 1,494 ₹ |
| Chg in FII Hold | -0.36 % | Chg in DII Hold | 0.95 % | PAT Qtr | 17.0 Cr. | PAT Prev Qtr | 150 Cr. |
| RSI | 39.4 | MACD | -26.8 | Volume | 75,965 | Avg Vol 1Wk | 1,01,530 |
| Low price | 1,097 ₹ | High price | 1,910 ₹ | PEG Ratio | -1.40 | Debt to equity | 0.79 |
| 52w Index | 25.7 % | Qtr Profit Var | 853 % | EPS | 20.8 ₹ | Industry PE | 27.6 |
📉 Chart & Trend: ERIS is trading at ₹1,306, below both its 50 DMA (₹1,400) and 200 DMA (₹1,494). This indicates short-term and medium-term weakness. The stock is in a downtrend with bearish bias.
📊 Momentum Indicators:
- RSI at 39.4 shows weak momentum, leaning towards oversold territory.
- MACD at -26.8 confirms bearish crossover and selling pressure.
- Bollinger Bands: Price is near the lower band, suggesting oversold conditions but no reversal yet.
- Volume is below average (75,965 vs 1,01,530), showing reduced participation and lack of strong buying interest.
📈 Support & Resistance:
- Immediate support: ₹1,280–1,300 zone.
- Strong support: ₹1,097 (recent low).
- Resistance zones: ₹1,400 (50 DMA) and ₹1,494 (200 DMA).
- Optimal entry: ₹1,280–1,300 near support.
- Exit zone: ₹1,400–1,450 if rebound occurs.
🔎 Trend Status: The stock is consolidating with bearish bias, awaiting breakout above 50 DMA for reversal confirmation.
Positive
- EPS of ₹20.8 shows consistent earnings power.
- DII holding increased by +0.95%, reflecting domestic institutional support.
- Quarterly profit variation (+853%) indicates sharp rebound in profitability.
Limitation
- Price below both 50 DMA and 200 DMA signals technical weakness.
- ROCE (6.86%) and ROE (3.02%) are weak, showing poor capital efficiency.
- High P/E of 60.7 compared to industry PE of 27.6 suggests premium valuation.
- Debt-to-equity ratio at 0.79 is relatively high, adding leverage risk.
Company Negative News
- FII holding decreased by -0.36%, showing reduced foreign investor confidence.
- PAT dropped sharply to ₹17 Cr from ₹150 Cr, indicating earnings volatility.
Company Positive News
- DII holding increased by +0.95%, reflecting domestic institutional confidence.
- Quarterly profit variation (+853%) highlights strong rebound potential despite volatility.
Industry
- Pharmaceutical sector remains defensive, benefiting from steady demand.
- Industry PE at 27.6 is far lower than ERIS’s PE (60.7), suggesting overvaluation relative to peers.
Conclusion
📌 ERIS is technically weak, consolidating below key moving averages with bearish momentum. Entry is favorable around ₹1,280–1,300 with stop-loss below ₹1,250. Short-term rebound may target ₹1,400–1,450, but sustained breakout requires volume confirmation. Fundamentally challenged with weak ROCE/ROE and high leverage, making it risky despite occasional profit spikes.
Would you like me to extend this into a peer benchmarking overlay against pharma mid-cap peers like Alkem, Torrent Pharma, and Laurus Labs to highlight relative strength and sector rotation opportunities?