NATCOPHARM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | NATCOPHARM | Market Cap | 17,142 Cr. | Current Price | 958 ₹ | High / Low | 1,060 ₹ |
| Stock P/E | 11.4 | Book Value | 462 ₹ | Dividend Yield | 0.63 % | ROCE | 31.8 % |
| ROE | 27.5 % | Face Value | 2.00 ₹ | DMA 50 | 919 ₹ | DMA 200 | 912 ₹ |
| Chg in FII Hold | 1.07 % | Chg in DII Hold | -0.48 % | PAT Qtr | 107 Cr. | PAT Prev Qtr | 501 Cr. |
| RSI | 52.9 | MACD | 23.1 | Volume | 6,43,164 | Avg Vol 1Wk | 7,32,485 |
| Low price | 660 ₹ | High price | 1,060 ₹ | PEG Ratio | 0.07 | Debt to equity | 0.03 |
| 52w Index | 74.4 % | Qtr Profit Var | -14.4 % | EPS | 83.8 ₹ | Industry PE | 27.6 |
📉 Chart & Trend: NATCOPHARM is trading at ₹958, above both 50 DMA (₹919) and 200 DMA (₹912), confirming a bullish bias. RSI at 52.9 shows neutral-to-positive momentum, while MACD at 23.1 reflects a positive crossover. Bollinger Bands suggest price is mid-range, indicating consolidation with potential upside.
📊 Volume: Current volume (6.43 L) is slightly below the 1-week average (7.32 L), showing moderate participation without strong buying pressure.
📈 Momentum Signals: Short-term momentum is mildly positive. Support levels are seen at ₹940–₹950 and strong support at ₹912 (200 DMA). Resistance lies at ₹1,000 and ₹1,060 (recent high).
🎯 Entry Zone: ₹940–₹950 (risk-managed entry zone).
🚪 Exit Zone: ₹1,000–₹1,060 (profit-taking zone near resistance).
🔎 Trend Status: Consolidation with bullish bias. The stock is holding above key moving averages, suggesting strength but facing resistance near highs.
Positive
- Strong ROCE (31.8%) and ROE (27.5%) show excellent capital efficiency.
- Low debt-to-equity ratio (0.03) ensures financial stability.
- EPS at ₹83.8 reflects strong earnings power.
- FII holding increased by 1.07%, showing foreign investor confidence.
- PEG ratio of 0.07 suggests attractive growth valuation.
Limitation
- PAT declined sharply from ₹501 Cr to ₹107 Cr, showing earnings volatility.
- DII holding reduced by -0.48%, reflecting weaker domestic institutional sentiment.
- Dividend yield of 0.63% is relatively low.
Company Negative News
- Quarterly profit variation at -14.4% indicates slowing growth momentum.
- Sharp decline in PAT highlights operational challenges.
Company Positive News
- EPS remains strong at ₹83.8 despite profit decline.
- FII inflows show confidence in long-term fundamentals.
Industry
- Industry PE at 27.6 is higher than the company’s P/E of 11.4, suggesting undervaluation relative to peers.
- Pharmaceutical sector benefits from global demand, but earnings can be volatile due to regulatory and product cycles.
Conclusion
✅ NATCOPHARM is in a consolidation phase with bullish bias, trading above key moving averages with neutral RSI and positive MACD. Fundamentals show strong efficiency, low debt, and attractive valuations compared to industry peers. However, sharp profit decline and reduced DII support limit near-term upside. Short-term traders may consider entries near ₹940–₹950 with exits around ₹1,000–₹1,060, while long-term investors can accumulate given strong EPS and undervaluation relative to the sector.
Would you like me to extend this into a peer benchmarking overlay against other pharma stocks like Sun Pharma, Dr. Reddy’s, and Cipla? That would highlight whether NATCOPHARM’s undervaluation is sector-driven or company-specific.