NEULANDLAB - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | NEULANDLAB | Market Cap | 15,906 Cr. | Current Price | 12,398 ₹ | High / Low | 19,748 ₹ |
| Stock P/E | 89.2 | Book Value | 1,257 ₹ | Dividend Yield | 0.10 % | ROCE | 18.7 % |
| ROE | 14.8 % | Face Value | 10.0 ₹ | DMA 50 | 13,422 ₹ | DMA 200 | 14,007 ₹ |
| Chg in FII Hold | 0.30 % | Chg in DII Hold | 1.17 % | PAT Qtr | 40.4 Cr. | PAT Prev Qtr | 96.5 Cr. |
| RSI | 42.1 | MACD | -317 | Volume | 23,777 | Avg Vol 1Wk | 36,508 |
| Low price | 10,060 ₹ | High price | 19,748 ₹ | PEG Ratio | 1.88 | Debt to equity | 0.16 |
| 52w Index | 24.1 % | Qtr Profit Var | -29.2 % | EPS | 139 ₹ | Industry PE | 27.6 |
📉 Chart & Trend: NEULANDLAB is trading at ₹12,398, below both 50 DMA (₹13,422) and 200 DMA (₹14,007), confirming a bearish setup. RSI at 42.1 shows weak momentum, while MACD at -317 indicates strong negative crossover. Bollinger Bands suggest price is near the lower band, reflecting weakness with potential for short-term rebound.
📊 Volume: Current volume (23.7K) is lower than the 1-week average (36.5K), showing reduced participation and lack of strong buying interest.
📈 Momentum Signals: Short-term momentum remains negative. Support levels are seen at ₹12,200–₹12,300 and strong support at ₹10,060 (52-week low). Resistance lies at ₹13,400–₹14,000 (DMA cluster) and ₹15,000.
🎯 Entry Zone: ₹12,200–₹12,300 (risk-managed entry zone).
🚪 Exit Zone: ₹13,400–₹14,000 (profit-taking zone near resistance).
🔎 Trend Status: Bearish consolidation. The stock is consolidating below key moving averages, struggling to regain momentum, and remains under pressure.
Positive
- Strong EPS at ₹139 reflects solid earnings power.
- Book value of ₹1,257 provides margin of safety relative to current price.
- ROCE (18.7%) and ROE (14.8%) show decent capital efficiency.
- FII holding increased by 0.30% and DII holding by 1.17%, showing institutional confidence.
Limitation
- High P/E (89.2) compared to industry average (27.6) indicates overvaluation.
- Dividend yield of 0.10% is very low.
- PEG ratio of 1.88 suggests moderately expensive growth prospects.
- Price trading below both 50 DMA and 200 DMA reflects technical weakness.
Company Negative News
- PAT declined sharply from ₹96.5 Cr to ₹40.4 Cr, showing earnings pressure.
- Volume participation is weak compared to averages, limiting momentum strength.
Company Positive News
- Quarterly profit variation at -29.2% highlights volatility but EPS remains strong.
- Institutional inflows (FII and DII) show confidence in long-term fundamentals.
Industry
- Industry PE at 27.6 is much lower than NEULANDLAB’s P/E of 89.2, suggesting relative overvaluation.
- Pharmaceutical and API sector benefits from global demand but faces regulatory and pricing pressures.
Conclusion
⚠️ NEULANDLAB is in a bearish consolidation phase, trading below key moving averages with weak RSI and strong negative MACD. Fundamentals show strong EPS, decent efficiency, and institutional support, but stretched valuations, declining profits, and weak volume participation limit upside. Short-term traders may consider entries near ₹12,200–₹12,300 with exits around ₹13,400–₹14,000, while long-term investors should wait for earnings stability and valuation correction before fresh accumulation.
Would you like me to extend this into a peer benchmarking overlay against other pharma/API companies like Divi’s Labs, Laurus Labs, and Aurobindo Pharma? That would highlight whether NEULANDLAB’s weakness is sector-driven or company-specific.