LUPIN - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.2

📈 Chart Patterns & Trend: Lupin is trading at ₹2,124, comfortably above its 50 DMA (₹2,035) and 200 DMA (₹1,992). This indicates a strong bullish trend with higher highs and higher lows. The stock is trending upward rather than consolidating or reversing.

📊 Moving Averages: Price above both short- and long-term averages confirms bullish sentiment. Key support zones lie near ₹2,035 and ₹1,992.

📉 RSI: At 64, RSI shows moderate bullish momentum without being overbought, suggesting room for further upside.

📈 MACD: Positive MACD (24.6) reinforces bullish momentum, signaling continuation of the uptrend.

📉 Bollinger Bands: Price is near the upper band, indicating short-term resistance around ₹2,403. A pullback toward mid-band (~₹2,150) could provide an attractive entry.

📊 Volume Trends: Current volume (5.29L) is slightly below the weekly average (6.28L), showing reduced participation. A breakout above ₹2,403 would need stronger volume confirmation.

🎯 Entry Zone: ₹2,050–₹2,100 (near 50 DMA support)

🚪 Exit Zone: ₹2,350–₹2,400 (near resistance/high)

Positive

• Strong ROCE (21.9%) and ROE (17.8%) reflect efficient capital utilization.
• Low debt-to-equity ratio (0.04) ensures financial stability.
• PEG ratio of 0.11 highlights undervaluation relative to growth prospects.
• Stock trading above both 50 DMA and 200 DMA confirms bullish momentum.

Limitation

• Quarterly PAT dropped sharply from ₹2,128 Cr. to ₹869 Cr., showing earnings volatility.
• FII holding decreased (-0.75%), indicating reduced foreign investor confidence.
• Dividend yield at 0.57% is relatively low for income-focused investors.

Company Negative News

• Recent profit decline raises concerns about margin sustainability.
• Global regulatory challenges in pharma markets could impact growth trajectory.

Company Positive News

• Strong domestic demand and expansion in generics portfolio.
• Improved DII holding (+1.01%) shows local institutional confidence.
• Healthy balance sheet with minimal leverage supports long-term growth.

Industry

• Pharma industry PE at 30.6 is higher than Lupin’s PE (18.2), suggesting relative undervaluation.
• Sector growth driven by generics, biosimilars, and global healthcare demand.

Conclusion

📌 Lupin shows strong technical momentum with price above key moving averages, bullish MACD, and supportive RSI. Entry near ₹2,050–₹2,100 offers favorable risk-reward, while resistance at ₹2,350–₹2,400 provides exit targets. Fundamentally undervalued compared to industry peers, though earnings volatility remains a concern. Overall, the stock is trending upward with medium-term bullish potential.