LALPATHLAB - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.8

📊 Technical Analysis

• Chart Patterns: Price (1,394 ₹) is below both 50 DMA (1,522 ₹) and 200 DMA (1,510 ₹), indicating weakness.
• Moving Averages: Bearish bias as price trades under short-term and long-term averages.
• RSI: 26.2 → deep oversold zone, suggesting potential for technical rebound but trend remains weak.
• MACD: -40.6 → bearish crossover, confirming downward momentum.
• Bollinger Bands: Price near lower band, indicating oversold conditions and possible short-term bounce.
• Volume Trends: Current volume (2.42 Lakh) is higher than 1-week average (1.98 Lakh), showing active selling pressure.

📈 Momentum & Signals

• Short-term Momentum: Bearish bias with oversold RSI suggesting possible short-term bounce.
• Support Zones: 1,350 ₹ (near-term), 1,300 ₹ (strong support), 1,147 ₹ (52-week low).
• Resistance Zones: 1,510 ₹ (200 DMA), 1,522 ₹ (50 DMA), 1,600 ₹ (psychological resistance).
• Optimal Entry: 1,350–1,300 ₹ range if RSI remains oversold.
• Optimal Exit: 1,510–1,600 ₹ range unless breakout above 1,600 ₹.
• Trend Status: Stock is trending downward with oversold signals; possible consolidation near support levels.

✅ Positive

• Strong ROCE (30.6%) and ROE (24.7%) indicate efficient capital use.
• Dividend yield at 0.86% provides shareholder returns.
• DII holdings increased (+0.60%), showing domestic institutional confidence.
• Quarterly PAT growth (146 Cr. vs 129 Cr.) with 13.1% profit variation improvement.

⚠️ Limitation

• Price trading below both 50 DMA and 200 DMA, showing weakness.
• High P/E (44.2) compared to industry PE (30.9), indicating stretched valuation.
• PEG ratio (3.35) suggests limited growth prospects relative to valuation.

📉 Company Negative News

• FII holdings decreased (-0.17%), showing reduced foreign investor confidence.
• Stock trading well below 52-week high (1,771 ₹), reflecting weak momentum.

📈 Company Positive News

• Quarterly PAT growth and margin expansion.
• DII holdings increased, balancing FII outflows.
• Dividend yield supports investor sentiment.

🏭 Industry

• Industry PE at 30.9, lower than company PE (44.2), suggesting Lal Path Labs trades at a premium.
• Diagnostics and healthcare sector remains resilient with steady demand outlook.

🔎 Conclusion

• Stock is in a downtrend with oversold RSI suggesting possible short-term bounce.
• Best entry near 1,350–1,300 ₹; exit near 1,510–1,600 ₹ unless breakout above 1,600 ₹.
• Long-term investors should be cautious due to stretched valuations despite strong fundamentals and sector resilience.