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NATCOPHARM - Technical Analysis with Chart Patterns & Indicators

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Rating: 4.2

Last Updated Time : 03 May 26, 11:24 am

Technical Rating: 4.2

Stock Code NATCOPHARM Market Cap 19,626 Cr. Current Price 1,096 ₹ High / Low 1,135 ₹
Stock P/E 13.1 Book Value 462 ₹ Dividend Yield 0.55 % ROCE 31.8 %
ROE 27.5 % Face Value 2.00 ₹ DMA 50 1,014 ₹ DMA 200 945 ₹
Chg in FII Hold 2.21 % Chg in DII Hold 0.07 % PAT Qtr 107 Cr. PAT Prev Qtr 501 Cr.
RSI 60.1 MACD 27.3 Volume 4,68,934 Avg Vol 1Wk 5,36,362
Low price 752 ₹ High price 1,135 ₹ PEG Ratio 0.08 Debt to equity 0.03
52w Index 89.8 % Qtr Profit Var -14.4 % EPS 83.8 ₹ Industry PE 30.1

📈 Chart & Trend: NATCOPHARM is trading above both its 50 DMA (1,014 ₹) and 200 DMA (945 ₹), confirming strong bullish momentum. RSI at 60.1 indicates mildly overbought conditions, while MACD at 27.3 shows a positive crossover supporting upward momentum. Bollinger Bands are moderately expanded, suggesting active volatility and continuation of trend.

🔎 Momentum Signals: Short-term momentum remains bullish with price near recent highs. Key support lies at 1,060–1,070 ₹, while resistance is seen at 1,120–1,135 ₹. Entry zone: 1,060–1,070 ₹. Exit zone: 1,120–1,135 ₹.

📊 Volume Trends: Current volume (4.68 lakh) is slightly below the 1-week average (5.36 lakh), indicating reduced participation but still supportive of the uptrend.

Positive

  • Strong ROCE (31.8%) and ROE (27.5%) highlight efficient capital use.
  • Low debt-to-equity ratio (0.03) ensures financial stability.
  • Attractive valuation with P/E (13.1) well below industry average (30.1).
  • FII holdings increased (+2.21%), reflecting strong foreign investor confidence.

Limitation

  • Quarterly PAT dropped sharply (107 Cr. vs 501 Cr.), raising earnings concerns.
  • RSI at 60.1 indicates mildly overbought conditions.
  • Volume below average suggests weaker short-term participation.

Company Negative News

  • Quarterly profit variation (-14.4%) highlights earnings volatility.

Company Positive News

  • Strong fundamentals with EPS at 83.8 ₹.
  • Positive FII inflows (+2.21%) and marginal DII support (+0.07%).

Industry

  • Industry PE at 30.1 indicates sector is moderately valued compared to NATCOPHARM’s attractive pricing.
  • Pharmaceutical sector continues to benefit from global demand and export opportunities.

Conclusion

NATCOPHARM is trending upward with strong technical signals supported by robust fundamentals and foreign investor inflows. However, recent profit decline and mildly overbought RSI warrant caution. Best suited for accumulation near 1,060–1,070 ₹ with profit booking around 1,120–1,135 ₹.

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