MEDANTA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | MEDANTA | Market Cap | 30,072 Cr. | Current Price | 1,120 ₹ | High / Low | 1,456 ₹ |
| Stock P/E | 57.3 | Book Value | 141 ₹ | Dividend Yield | 0.04 % | ROCE | 19.6 % |
| ROE | 15.2 % | Face Value | 2.00 ₹ | DMA 50 | 1,160 ₹ | DMA 200 | 1,220 ₹ |
| Chg in FII Hold | -0.87 % | Chg in DII Hold | 1.02 % | PAT Qtr | 128 Cr. | PAT Prev Qtr | 137 Cr. |
| RSI | 49.6 | MACD | -34.6 | Volume | 7,59,275 | Avg Vol 1Wk | 3,10,119 |
| Low price | 1,010 ₹ | High price | 1,456 ₹ | PEG Ratio | 1.81 | Debt to equity | 0.07 |
| 52w Index | 24.7 % | Qtr Profit Var | 22.6 % | EPS | 19.2 ₹ | Industry PE | 45.2 |
📈 Chart & Trend Analysis: Medanta is trading at ₹1,120, below both its 50 DMA (₹1,160) and 200 DMA (₹1,220), indicating short-term weakness and medium-term resistance. RSI at 49.6 suggests neutral momentum, while MACD at -34.6 signals bearish divergence. Bollinger Bands show price near the lower band, reflecting pressure and possible consolidation.
📊 Volume Trends: Current volume (7.59 lakh) is significantly higher than the 1-week average (3.10 lakh), suggesting strong participation but with selling pressure dominating due to negative MACD.
🎯 Entry Zone: ₹1,080 – ₹1,120 (support near recent lows)
🚪 Exit Zone: ₹1,200 – ₹1,240 (resistance near 200 DMA and upper consolidation zone)
🔎 Trend Status: Consolidating with bearish bias — price is struggling below moving averages, with weak RSI and negative MACD confirming downside pressure despite high volume activity.
Positive ✅
- ROCE (19.6%) and ROE (15.2%) reflect decent operational efficiency.
- Debt-to-equity ratio of 0.07 indicates low leverage risk.
- DII holdings increased (+1.02%), showing domestic institutional confidence.
- Quarterly profit variation of 22.6% highlights earnings resilience.
Limitation ⚠️
- High P/E of 57.3 compared to industry average (45.2) suggests stretched valuations.
- Dividend yield of 0.04% is negligible for income investors.
- Price trading below both 50 DMA and 200 DMA indicates technical weakness.
- EPS of ₹19.2 is modest relative to valuation multiples.
Company Negative News 📉
- Decline in FII holdings (-0.87%) reflects reduced foreign investor confidence.
- Sequential PAT decline (₹128 Cr vs ₹137 Cr) indicates short-term earnings pressure.
Company Positive News 📈
- Quarterly profit variation of 22.6% shows strong year-on-year growth.
- Strong domestic institutional support with DII inflows.
Industry 🌐
- Industry P/E at 45.2 suggests sector trades at premium valuations.
- Healthcare sector benefits from rising demand and long-term structural growth.
Conclusion 📝
Medanta is consolidating below key moving averages with neutral RSI and bearish MACD, suggesting short-term weakness. Entry near ₹1,080–₹1,120 offers margin of safety, while exits around ₹1,200–₹1,240 provide profit-taking opportunities. Fundamentally supported by low debt and decent ROCE, but stretched valuations and recent earnings decline limit upside. Traders should approach cautiously, while long-term investors may accumulate selectively given healthcare sector growth potential.
Would you like me to extend this into a peer benchmarking overlay (comparing Medanta against hospital peers like Apollo Hospitals, Narayana Hrudayalaya, Fortis) so you can evaluate relative strength and sector rotation opportunities?