LAURUSLABS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.9
| Stock Code | LAURUSLABS | Market Cap | 50,212 Cr. | Current Price | 930 ₹ | High / Low | 1,141 ₹ |
| Stock P/E | 62.7 | Book Value | 91.1 ₹ | Dividend Yield | 0.13 % | ROCE | 9.47 % |
| ROE | 7.75 % | Face Value | 2.00 ₹ | DMA 50 | 1,021 ₹ | DMA 200 | 877 ₹ |
| Chg in FII Hold | 0.35 % | Chg in DII Hold | 0.70 % | PAT Qtr | 175 Cr. | PAT Prev Qtr | 216 Cr. |
| RSI | 28.8 | MACD | -24.5 | Volume | 18,08,120 | Avg Vol 1Wk | 29,83,959 |
| Low price | 512 ₹ | High price | 1,141 ₹ | PEG Ratio | -2.70 | Debt to equity | 0.37 |
| 52w Index | 66.5 % | Qtr Profit Var | 206 % | EPS | 14.8 ₹ | Industry PE | 29.0 |
📊 Chart Patterns & Trend: Laurus Labs is trading at 930 ₹, below its 50 DMA (1,021 ₹) but above its 200 DMA (877 ₹). This indicates short-term weakness with medium-term support. The stock is currently in a consolidation phase leaning bearish.
📈 RSI: At 28.8, RSI is oversold, suggesting potential for a short-term rebound.
📉 MACD: Negative at -24.5, confirming bearish momentum and lack of bullish crossover.
📊 Bollinger Bands: Price is near the lower band, signaling oversold conditions and possible mean reversion.
📊 Volume Trends: Current volume (18,08,120) is lower than average weekly volume (29,83,959), showing weak participation in the recent decline.
🎯 Entry Zone: 880–900 ₹ (near 200 DMA support).
🎯 Exit Zone: 1,020–1,050 ₹ (near 50 DMA resistance and upper consolidation band).
Positive
- Market cap of 50,212 Cr. reflects strong industry presence.
- Quarterly profit variance shows 206% growth, indicating operational resilience.
- FII and DII holdings increased (0.35% and 0.70%), showing institutional confidence.
- Debt-to-equity ratio at 0.37 is manageable.
Limitation
- High P/E of 62.7 compared to industry PE of 29.0, making valuation expensive.
- ROCE (9.47%) and ROE (7.75%) are relatively weak for long-term compounding.
- Dividend yield is negligible at 0.13%.
- PEG ratio is negative (-2.70), indicating poor earnings growth relative to valuation.
Company Negative News
- Sequential decline in quarterly PAT (175 Cr. vs 216 Cr.).
- Weak EPS growth relative to valuation multiples.
Company Positive News
- Strong rebound in quarterly profit variance (206%).
- Institutional investors increasing stake, signaling confidence.
Industry
- Pharma sector trading at industry PE of 29.0, highlighting Laurus Labs’ overvaluation.
- Sector rotation favors defensive healthcare stocks, but valuations remain stretched.
Conclusion
⚖️ Laurus Labs is in a consolidation phase with bearish short-term momentum but oversold RSI suggesting a possible rebound. Entry near 880–900 ₹ offers margin of safety, while exits around 1,020–1,050 ₹ provide profit-taking opportunities. Long-term investors should be cautious due to high valuations and modest ROE/ROCE, while short-term traders may exploit oversold conditions for swing trades.
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