LAURUSLABS - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 4.1

📊 Chart Patterns & Trend: LAURUSLABS is trading above both its 50 DMA (974 ₹) and 200 DMA (818 ₹), showing strong bullish momentum. Price action suggests the stock is in a trending phase near its 52-week high (1,049 ₹).

📈 Moving Averages: Current price (1,047 ₹) is comfortably above both 50 DMA and 200 DMA, confirming an uptrend. Resistance lies around 1,049 ₹ (recent high).

📉 RSI: At 57.0, RSI is in bullish territory but not overbought, suggesting healthy momentum.

📈 MACD: Positive at 10.2, confirming bullish momentum and signaling continuation of the uptrend.

📊 Bollinger Bands: Price is near the upper band, reflecting strong buying interest but also caution for short-term volatility.

📉 Volume Trends: Current volume (8,89,160) is slightly below average weekly volume (10,26,774), showing moderate participation. Sustained higher volumes would strengthen breakout potential.

🎯 Entry Zone: 1,000–1,020 ₹ (near 50 DMA support).

🎯 Exit Zone: 1,045–1,055 ₹ (near resistance and 52-week high).

⚡ Momentum: Strong, with bullish signals and trending behavior.

Positive

• Quarterly PAT growth (216 Cr vs 158 Cr) shows strong earnings improvement (+408%).
• EPS at 12.6 ₹ provides earnings visibility.
• FII holdings increased (+0.47%), showing foreign investor confidence.
• Stock trading above both 50 DMA and 200 DMA confirms bullish technical strength.

Limitation

• High P/E ratio (82.8) compared to industry average (30.6), indicating premium valuation.
• PEG ratio (-3.57) highlights poor growth-adjusted valuation.
• ROCE (9.47%) and ROE (7.75%) are relatively weak compared to peers.
• DII holdings decreased (-0.22%), showing reduced domestic institutional support.
• Volume participation is slightly below average, limiting breakout strength.

Company Negative News

• DII stake reduction (-0.22%) indicates declining domestic institutional interest.
• Premium valuation compared to industry peers may limit upside potential.

Company Positive News

• Quarterly PAT growth of 408% highlights strong operational performance.
• FII stake increase (+0.47%) shows confidence from foreign institutions.
• Stock trading near 52-week high reflects strong investor sentiment.

Industry

• Industry PE at 30.6 is much lower than LAURUSLABS’s PE (82.8), showing premium valuation.
• Pharmaceutical and biotech sector demand remains strong, supported by healthcare expansion and global drug demand.

Conclusion

⚖️ LAURUSLABS is currently in a strong uptrend, trading above key moving averages with bullish MACD and healthy RSI. Entry opportunities lie near 1,000–1,020 ₹, with resistance around 1,045–1,055 ₹. Fundamentally supported by strong PAT growth and FII confidence, but technically cautious due to premium valuation and weak ROCE/ROE. Best suited for medium-to-long term investors; traders can capitalize on momentum while monitoring resistance levels.