NEULANDLAB - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

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Technical Rating: 4.1

Technical Analysis Summary

• Trend: Trending upward with strong bullish structure
• Moving Averages: Price (₹16,560) is above both DMA 50 (₹15,215) and DMA 200 (₹13,490), confirming bullish alignment
• RSI (60.5): Bullish zone, with room before overbought levels
• MACD (264): Strong bullish crossover, supporting continued upward momentum
• Bollinger Bands: Price near upper band, indicating strength but potential short-term resistance
• Volume: Above average (47.5K vs 40.6K), showing healthy participation

Entry & Exit Zones

• Support: ₹15,200 – ₹15,500 (DMA 50 and recent base)
• Resistance: ₹17,500 – ₹18,100 (52-week high zone)
• Optimal Entry: ₹15,800 – ₹16,200 on pullback with MACD support
• Exit Zone: ₹17,500 – ₹18,100 if price shows signs of exhaustion

Positive

• Strong ROCE (18.7%) and ROE (14.8%) indicate solid operational efficiency
• EPS of ₹136 and low debt-to-equity ratio (0.10)
• Price up 80.8% over 52 weeks
• Significant DII interest (+1.98%) and strong MACD momentum

Limitation

• High P/E of 163 vs industry average of 33.1 suggests premium valuation
• PEG ratio of 3.44 indicates overvaluation relative to growth
• Quarterly PAT dropped sharply from ₹27.7 Cr. to ₹13.7 Cr. (-83.4%)
• Decline in FII holding (-1.09%) may reflect cautious foreign sentiment

Company Negative News

• Significant drop in quarterly profitability raises concerns over earnings consistency

Company Positive News

• Strong long-term price performance and continued institutional interest from domestic investors
• Expansion in API and CDMO segments with a focus on complex molecules

Industry

• NEULANDLAB operates in the pharmaceutical and active pharmaceutical ingredients (API) sector
• Peers include Divi’s Labs, Laurus Labs, and Suven Pharma

Conclusion

NEULANDLAB is currently trending upward with strong technical momentum and bullish alignment across key indicators. While the stock shows robust long-term strength, high valuation and recent profit volatility suggest a cautious approach. Traders may consider entry near ₹16,000 with targets around ₹18,000, watching RSI and MACD for sustained momentum or signs of reversal.