NATCOPHARM - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.8

📈 Chart Patterns & Trend: NATCOPHARM is trading at ₹918, slightly above its 50 DMA (₹874) and near its 200 DMA (₹919). This indicates a consolidation phase with mild bullish undertone, as the stock is attempting to stabilize after a decline from its high of ₹1,489.

📊 Moving Averages: Price above the 50 DMA but hovering around the 200 DMA suggests sideways consolidation. Key support lies near ₹880–₹900, while resistance is around ₹950–₹975.

📉 RSI: At 56.1, RSI is in the bullish zone but not overbought, suggesting balanced momentum with scope for further upside.

📈 MACD: Positive MACD (18.1) signals bullish momentum, supporting continuation of the consolidation with upward bias.

📉 Bollinger Bands: Price is near the mid-band, indicating consolidation. A breakout above ₹950 could trigger bullish momentum toward ₹1,000.

📊 Volume Trends: Current volume (4.41L) is below the weekly average (8.31L), showing reduced participation. Stronger volume is needed to confirm breakout strength.

🎯 Entry Zone: ₹880–₹900 (near support)

🚪 Exit Zone: ₹950–₹975 (near resistance)

Positive

• Strong ROCE (31.8%) and ROE (27.5%) reflect excellent efficiency and profitability.
• Debt-to-equity ratio of 0.03 indicates very low leverage risk.
• Quarterly PAT improved from ₹464 Cr. to ₹501 Cr., showing earnings growth.
• PEG ratio of 0.07 highlights undervaluation relative to growth prospects.

Limitation

• Stock trading close to 200 DMA indicates lack of strong momentum.
• Quarterly profit variation (-24.2%) shows earnings volatility.
• FII holding decreased (-1.43%), reflecting reduced foreign investor confidence.
• Volume participation is weak compared to averages, limiting breakout potential.

Company Negative News

• Decline in foreign institutional holdings adds pressure on sentiment.
• Profit variation highlights earnings inconsistency despite overall growth.

Company Positive News

• Strong quarterly profit growth supports earnings momentum.
• Domestic institutional investors increased stake (+0.06%), showing local confidence.
• Debt-light balance sheet supports long-term stability.

Industry

• Industry PE at 30.6 is much higher than NATCOPHARM’s PE (10.8), suggesting undervaluation compared to peers.
• Pharma sector benefits from rising demand for generics and specialty drugs globally.

Conclusion

📌 NATCOPHARM is in a consolidation phase, trading near its 200 DMA with positive MACD and supportive RSI. Entry near ₹880–₹900 offers favorable risk-reward, while resistance at ₹950–₹975 provides exit targets. Strong fundamentals and undervaluation support long-term growth, though weak volume and reduced foreign participation warrant cautious optimism in the near term.