MEDANTA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | MEDANTA | Market Cap | 28,160 Cr. | Current Price | 1,047 ₹ | High / Low | 1,456 ₹ |
| Stock P/E | 56.2 | Book Value | 141 ₹ | Dividend Yield | 0.05 % | ROCE | 19.6 % |
| ROE | 15.2 % | Face Value | 2.00 ₹ | DMA 50 | 1,126 ₹ | DMA 200 | 1,193 ₹ |
| Chg in FII Hold | -0.87 % | Chg in DII Hold | 1.02 % | PAT Qtr | 107 Cr. | PAT Prev Qtr | 128 Cr. |
| RSI | 33.8 | MACD | -22.5 | Volume | 1,52,655 | Avg Vol 1Wk | 1,17,720 |
| Low price | 1,010 ₹ | High price | 1,456 ₹ | PEG Ratio | 1.78 | Debt to equity | 0.07 |
| 52w Index | 8.23 % | Qtr Profit Var | -18.4 % | EPS | 17.3 ₹ | Industry PE | 43.5 |
📊 Chart & Trend: MEDANTA is trading at ₹1,047, below both its 50 DMA (₹1,126) and 200 DMA (₹1,193), reflecting weakness. RSI at 33.8 suggests oversold conditions, while MACD (-22.5) confirms bearish momentum. Bollinger Bands show price near the lower band, signaling selling pressure but also potential for a rebound.
📈 Momentum Signals: Volume (1.52L) is higher than the 1-week average (1.17L), showing increased activity despite weakness. RSI below 35 indicates short-term oversold conditions, hinting at possible accumulation zones.
💡 Entry Zone: ₹1,020–₹1,040 (support zone).
🚪 Exit Zone: ₹1,120–₹1,160 (resistance). A breakout above ₹1,160 could open room toward ₹1,200.
📌 Trend Status: The stock is currently reversing downward after correcting from its high of ₹1,456, with bearish undertones dominating near-term charts.
Positive
- ROCE (19.6%) and ROE (15.2%) show moderate efficiency.
- DII holdings increased (+1.02%), signaling domestic institutional support.
- Debt-to-equity ratio of 0.07 indicates low leverage.
- EPS of ₹17.3 reflects profitability.
Limitation
- High P/E (56.2) compared to industry PE (43.5), suggesting stretched valuation.
- Dividend yield (0.05%) is negligible, limiting income appeal.
- Stock trading below both 50 DMA and 200 DMA reflects technical weakness.
Company Negative News
- Decline in FII holdings (-0.87%) signals reduced foreign investor confidence.
- Quarterly PAT declined (₹107 Cr vs ₹128 Cr), showing earnings pressure.
- 52-week index gain of only 8.23% highlights underperformance relative to peers.
Company Positive News
- Book value of ₹141 provides margin of safety.
- Strong institutional support from DIIs (+1.02%).
- Operational efficiency reflected in ROCE and ROE above double digits.
Industry
- Healthcare sector enjoys steady demand and long-term growth potential.
- Industry PE (43.5) is lower than MEDANTA’s P/E, suggesting premium valuation.
- Peers trade at moderate valuations, positioning MEDANTA as a premium healthcare play.
Conclusion
⚖️ MEDANTA is showing bearish reversal signals with RSI near oversold and MACD negative. Fundamentals remain stable (low debt, moderate ROCE/ROE, institutional support), but valuation is stretched and earnings have weakened. Entry near ₹1,020–₹1,040 offers a margin of safety, with exits around ₹1,120–₹1,160. Long-term investors may hold for healthcare sector strength, while traders should wait for a reversal confirmation before momentum trades.
Selva, would you like me to extend this into a peer benchmarking overlay against healthcare players like Apollo Hospitals, Narayana Hrudayalaya, and Fortis? That would highlight relative strength and sector rotation opportunities alongside Medanta.