JBCHEPHARM - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 4.0

📊 Chart Patterns: JBCHEPHARM is trading above both its 50 DMA (1,760 ₹) and 200 DMA (1,720 ₹), showing strength. Price action suggests an uptrend with support near 1,770 ₹ and resistance around 1,850–1,900 ₹.

📈 Moving Averages: Current price (1,796 ₹) is above both 50 DMA and 200 DMA, confirming bullish sentiment in the short-to-medium term.

📉 RSI: At 52.1, RSI is neutral-to-bullish, indicating healthy momentum without being overbought.

📈 MACD: Positive (11.8) indicates bullish crossover, supporting upward momentum.

📊 Bollinger Bands: Price is near the mid-to-upper band, suggesting strength with room for further upside.

📊 Volume Trends: Current volume (26k) is lower than 1-week average (77k), showing reduced participation but stable price action.

📌 Momentum Signals: Strong short-term momentum; breakout possible if price sustains above 1,800 ₹.

🎯 Entry Zone: 1,770–1,800 ₹ (near support and DMA levels).

🎯 Exit Zone: 1,850–1,900 ₹ (near resistance trendline).

🔎 Trend Status: Trending upward with bullish bias.

Positive

• Strong ROCE (25.9%) and ROE (20.2%) highlight efficiency.
• EPS of 45.2 ₹ supports valuation strength.
• Quarterly PAT growth of 15.8% (₹200 Cr vs ₹198 Cr).
• DII holdings increased (+3.21%), showing strong domestic institutional support.
• Debt-to-equity ratio is very low (0.01), showing financial stability.

Limitation

• High P/E ratio (39.9) compared to industry PE (30.6), suggesting overvaluation.
• PEG ratio of 1.68 indicates expensive valuation relative to growth.
• Volume participation is weak, limiting breakout strength.

Company Negative News

• Decline in FII holding (-2.46%) shows reduced foreign investor confidence.
• High valuation metrics (P/E and PEG) raise concerns about sustainability of current price levels.

Company Positive News

• Quarterly profits improved (₹200 Cr vs ₹198 Cr).
• DII inflows (+3.21%) highlight strong domestic institutional confidence.
• Strong fundamentals with high efficiency ratios and low debt.

Industry

• Industry PE at 30.6 is lower than JBCHEPHARM’s P/E (39.9), suggesting premium valuation.
• Pharmaceutical sector outlook remains positive with strong demand and global expansion opportunities.

Conclusion

⚖️ JBCHEPHARM is trending upward with strong technical signals, supported by MACD, RSI, and moving averages. Traders may consider entry around 1,770–1,800 ₹ with exit near 1,850–1,900 ₹. Long-term investors benefit from strong fundamentals, profit growth, and institutional support, though high valuation and reduced FII confidence remain concerns.