NEULANDLAB - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.4

📊 Chart Patterns: NEULANDLAB is trading at 15,940 ₹, below its 50 DMA (16,268 ₹) but above its 200 DMA (14,418 ₹). The chart shows weakness after a correction from the 52-week high (19,748 ₹), with support visible near 15,500–15,700 ₹.

📈 Moving Averages: Price is below the 50 DMA but above the 200 DMA, indicating medium-term bullishness but short-term weakness.

📉 RSI: At 42.0, RSI is neutral-to-weak, suggesting consolidation with limited downside risk.

📉 MACD: Strongly negative (-188), showing bearish crossover and short-term weakness.

📊 Bollinger Bands: Price is near the mid-to-lower band, indicating selling pressure and possible sideways consolidation.

📊 Volume Trends: Current volume (52k) is slightly below average weekly volume (54k), showing reduced participation and lack of strong momentum.

📍 Momentum Signals: Short-term momentum is bearish. RSI suggests consolidation near support but no strong reversal yet.

🎯 Entry Zone: 15,500–15,700 ₹ (near support). Suitable for accumulation with risk management.

🎯 Exit Zone: 16,200–16,500 ₹ (near 50 DMA resistance). Strong resistance at 17,000 ₹.

🔎 Trend Status: The stock is consolidating after a correction, with sideways movement expected near support levels.

Positive

• Quarterly PAT surged significantly (96.5 Cr. vs 13.7 Cr.), showing strong growth (+202%).
• EPS of 187 ₹ supports valuation strength.
• DII holdings increased (+1.98%), showing domestic investor confidence.
• Debt-to-equity ratio is low (0.16), ensuring financial stability.
• Trading above 200 DMA confirms medium-term bullish structure.

Limitation

• High P/E (105) compared to industry average (30.6), indicating premium valuation.
• PEG ratio (2.22) suggests limited growth prospects relative to valuation.
• MACD strongly negative, showing short-term weakness.
• Volume participation slightly below average.

Company Negative News

• FII holdings declined (-1.09%).
• Stock corrected from 19,748 ₹ to 15,940 ₹.

Company Positive News

• Quarterly PAT surged (+202%).
• DII holdings increased (+1.98%).
• Debt-to-equity ratio remains low, supporting balance sheet strength.

Industry

• Industry PE is 30.6, much lower than NEULANDLAB’s 105, highlighting premium valuation.
• Pharmaceutical sector remains defensive with long-term growth potential driven by healthcare demand.

Conclusion

⚠️ NEULANDLAB is consolidating near support levels with weak technical momentum. Fundamentals show strong profitability growth and low debt, but high valuation limits upside. Traders may consider entries near 15,500–15,700 ₹ with exits around 16,200–16,500 ₹. Long-term investors should wait for earnings growth to justify premium valuation before committing further.