LAURUSLABS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | LAURUSLABS | Market Cap | 53,133 Cr. | Current Price | 984 ₹ | High / Low | 1,141 ₹ |
| Stock P/E | 66.4 | Book Value | 91.1 ₹ | Dividend Yield | 0.12 % | ROCE | 9.47 % |
| ROE | 7.75 % | Face Value | 2.00 ₹ | DMA 50 | 1,018 ₹ | DMA 200 | 915 ₹ |
| Chg in FII Hold | 0.35 % | Chg in DII Hold | 0.70 % | PAT Qtr | 175 Cr. | PAT Prev Qtr | 216 Cr. |
| RSI | 42.5 | MACD | -8.40 | Volume | 12,03,560 | Avg Vol 1Wk | 20,87,679 |
| Low price | 517 ₹ | High price | 1,141 ₹ | PEG Ratio | -2.86 | Debt to equity | 0.37 |
| 52w Index | 74.8 % | Qtr Profit Var | 206 % | EPS | 14.8 ₹ | Industry PE | 27.6 |
📊 Chart & Trend: Laurus Labs trades at ₹984, below its 50 DMA (₹1,018) but above its 200 DMA (₹915). This indicates short-term weakness but medium-term support.
📉 Momentum Indicators: RSI at 42.5 shows the stock is nearing oversold levels but not yet at reversal strength. MACD at -8.40 confirms bearish momentum. Bollinger Bands suggest price is leaning toward the lower band, with support near ₹950–₹960.
📈 Volume Trends: Current volume (12 lakh) is lower than the 1-week average (20 lakh), reflecting reduced participation and weak buying interest.
🔑 Entry Zone: ₹940–₹960 (near support and lower Bollinger Band).
🚪 Exit Zone: ₹1,080–₹1,100 (near resistance and recent swing highs).
📌 Trend Status: The stock is in consolidation with bearish short-term signals but medium-term support intact.
Positive
- Strong YoY profit growth (206%).
- EPS at ₹14.8 indicates earnings recovery.
- Debt-to-equity ratio at 0.37 shows manageable leverage.
- FII (+0.35%) and DII (+0.70%) holdings increased, signaling institutional confidence.
Limitation
- High P/E of 66.4 compared to industry average of 27.6.
- Weak ROCE (9.47%) and ROE (7.75%) reflect poor capital efficiency.
- Negative PEG ratio (-2.86) suggests poor valuation relative to growth.
Company Negative News
- Sequential decline in PAT (₹216 Cr → ₹175 Cr).
- Stock trading below 50 DMA, showing short-term weakness.
Company Positive News
- Strong YoY profit growth despite sequential decline.
- Institutional investors increasing stake.
Industry
- Pharma sector PE at 27.6, much lower than Laurus Labs’ valuation.
- Sector rotation favors defensive stocks, but valuations remain stretched.
Conclusion
⚖️ Laurus Labs is consolidating with bearish short-term signals but medium-term support intact. Entry near ₹940–₹960 offers margin of safety, while exits around ₹1,080–₹1,100 provide profit-taking opportunities. High valuation and weak efficiency metrics limit upside, but institutional confidence and profit growth support long-term resilience.
Would you like me to extend this into a peer benchmarking overlay with Divi’s Labs, Aurobindo, and Sun Pharma so you can see how Laurus Labs stacks up against sector leaders for rotation clarity?