NATCOPHARM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | NATCOPHARM | Market Cap | 14,655 Cr. | Current Price | 818 ₹ | High / Low | 1,341 ₹ |
| Stock P/E | 9.65 | Book Value | 462 ₹ | Dividend Yield | 0.73 % | ROCE | 31.8 % |
| ROE | 27.5 % | Face Value | 2.00 ₹ | DMA 50 | 867 ₹ | DMA 200 | 907 ₹ |
| Chg in FII Hold | 1.07 % | Chg in DII Hold | -0.48 % | PAT Qtr | 501 Cr. | PAT Prev Qtr | 464 Cr. |
| RSI | 39.7 | MACD | -20.6 | Volume | 2,77,236 | Avg Vol 1Wk | 4,50,217 |
| Low price | 660 ₹ | High price | 1,341 ₹ | PEG Ratio | 0.06 | Debt to equity | 0.03 |
| 52w Index | 23.2 % | Qtr Profit Var | -24.2 % | EPS | 84.8 ₹ | Industry PE | 29.0 |
📊 Chart & Trend Analysis:
NATCOPHARM is trading at ₹818, below both its 50 DMA (₹867) and 200 DMA (₹907), indicating short-term weakness. RSI at 39.7 suggests the stock is approaching oversold territory, while MACD at -20.6 confirms bearish momentum. Bollinger Bands show price near the lower band, reflecting selling pressure. Current volume (2.77 lakh) is lower than the 1-week average (4.50 lakh), indicating reduced participation and lack of strong buying support.
📈 Momentum Signals:
- RSI near oversold zone, potential for short-term bounce.
- MACD negative crossover confirms bearish bias.
- Price below both 50 & 200 DMA indicates weakness.
- Low volume suggests lack of conviction in current moves.
🎯 Optimal Entry & Exit Zones:
- Entry Zone: ₹800 – ₹815 (near support, oversold RSI).
- Exit Zone: ₹860 – ₹880 (resistance at 50 DMA).
- Stop Loss: ₹780 (below key support).
📌 Trend Status: The stock is consolidating with bearish bias, holding above long-term support but failing to break resistance levels.
Positive
- Strong ROCE (31.8%) and ROE (27.5%) highlight efficient capital use.
- Low debt-to-equity ratio (0.03) ensures financial stability.
- EPS of ₹84.8 reflects strong earnings base.
- FII holding increased (+1.07%), showing foreign investor confidence.
- PEG ratio of 0.06 indicates attractive valuation relative to growth.
Limitation
- Stock trading below both 50 DMA and 200 DMA reflects weak technical strength.
- Quarterly profit variation (-24.2%) shows earnings pressure.
- Low trading volume compared to average indicates weak investor participation.
Company Negative News
- Quarterly profit decline from ₹464 Cr. to ₹501 Cr. with negative variation (-24.2%).
- DII holding decreased (-0.48%), showing reduced domestic institutional support.
Company Positive News
- EPS strength and consistent profitability support long-term investor confidence.
- FII holding increased (+1.07%), reflecting foreign investor interest.
Industry
- Industry P/E at 29.0 is significantly higher than company’s P/E (9.65), suggesting NATCOPHARM is undervalued compared to peers.
- Pharmaceutical sector remains resilient, driven by demand for generics and specialty drugs.
Conclusion
⚖️ NATCOPHARM is consolidating with bearish bias, trading below key moving averages and showing weak momentum. While fundamentals remain strong with high ROE, low debt, and attractive valuation, earnings pressure and weak technical signals limit upside in the near term. Short-term traders may consider entry near ₹800–₹815 with exits around ₹860–₹880, while long-term investors may find value given the low P/E and strong fundamentals compared to industry peers.