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MEDANTA - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.8

Last Updated Time : 04 May 26, 11:57 am

Technical Rating: 3.8

Stock Code MEDANTA Market Cap 30,037 Cr. Current Price 1,117 ₹ High / Low 1,456 ₹
Stock P/E 60.0 Book Value 141 ₹ Dividend Yield 0.04 % ROCE 19.6 %
ROE 15.2 % Face Value 2.00 ₹ DMA 50 1,091 ₹ DMA 200 1,162 ₹
Chg in FII Hold -0.39 % Chg in DII Hold 0.77 % PAT Qtr 107 Cr. PAT Prev Qtr 128 Cr.
RSI 56.2 MACD 20.4 Volume 2,92,096 Avg Vol 1Wk 1,98,268
Low price 955 ₹ High price 1,456 ₹ PEG Ratio 1.90 Debt to equity 0.07
52w Index 32.3 % Qtr Profit Var -18.4 % EPS 17.3 ₹ Industry PE 47.1

📈 Chart & Trend: MEDANTA is trading slightly above its 50 DMA (1,091 ₹) but below the 200 DMA (1,162 ₹), indicating short-term strength but medium-term weakness. RSI at 56.2 shows neutral momentum, while MACD at 20.4 is mildly positive. Bollinger Bands suggest price is mid-range, pointing to consolidation rather than a breakout.

🔎 Momentum Signals: Current volume (2.92 lakh) is higher than the 1-week average (1.98 lakh), showing increased participation. This supports short-term upward bias, but profit-taking risk remains due to weak quarterly earnings.

🎯 Entry Zone: 1,080–1,100 ₹ (support near 50 DMA)

🚪 Exit Zone: 1,200–1,230 ₹ (resistance near 200 DMA)

📊 Trend Status: Consolidating with mild upward bias.

Positive

  • Strong ROCE (19.6%) and ROE (15.2%) highlight decent efficiency.
  • PEG ratio (1.90) suggests growth is reasonably priced.
  • DII holdings increased (+0.77%), showing domestic institutional support.
  • Debt-to-equity at 0.07 indicates low leverage.

Limitation

  • High P/E (60.0) compared to industry average (47.1), indicating overvaluation.
  • Dividend yield remains negligible at 0.04%.
  • Quarterly PAT declined to 107 Cr. from 128 Cr. (-18.4%).
  • Trading below 200 DMA reflects medium-term weakness.

Company Negative News

  • Decline in quarterly profits and reduced FII holdings (-0.39%).

Company Positive News

  • Strong domestic institutional support (+0.77%).
  • Stable fundamentals with low debt and consistent operational efficiency.

Industry

  • Industry P/E at 47.1 reflects premium valuations across healthcare sector.
  • Sector supported by rising demand for hospital and healthcare services.

Conclusion

MEDANTA is consolidating near support levels with mild upward bias. Entry near 1,080–1,100 ₹ offers a cautious setup, while profit booking is advised near 1,200–1,230 ₹. Short-term outlook remains neutral, with long-term prospects dependent on earnings recovery and sustaining growth momentum.

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