POLYMED - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | POLYMED | Market Cap | 16,190 Cr. | Current Price | 1,598 ₹ | High / Low | 2,456 ₹ |
| Stock P/E | 46.7 | Book Value | 285 ₹ | Dividend Yield | 0.22 % | ROCE | 18.2 % |
| ROE | 14.2 % | Face Value | 5.00 ₹ | DMA 50 | 1,489 ₹ | DMA 200 | 1,682 ₹ |
| Chg in FII Hold | -3.49 % | Chg in DII Hold | 1.76 % | PAT Qtr | 83.4 Cr. | PAT Prev Qtr | 89.0 Cr. |
| RSI | 58.8 | MACD | 21.8 | Volume | 1,34,536 | Avg Vol 1Wk | 1,26,739 |
| Low price | 1,182 ₹ | High price | 2,456 ₹ | PEG Ratio | 1.51 | Debt to equity | 0.08 |
| 52w Index | 32.7 % | Qtr Profit Var | -2.04 % | EPS | 33.8 ₹ | Industry PE | 33.0 |
📊 Chart Analysis: Polymed is trading at ₹1,598, above its 50 DMA (₹1,489) but below the 200 DMA (₹1,682), indicating short-term bullish momentum but medium-term resistance. RSI at 58.8 shows healthy strength, not yet overbought. MACD at 21.8 confirms positive crossover, supporting upward bias. Bollinger Bands suggest price moving towards the upper band, with resistance near ₹1,650–₹1,700.
📈 Volume Trends: Current volume (1,34,536) is slightly above the 1-week average (1,26,739), reflecting steady participation and moderate buying interest.
🔑 Momentum Signals: Short-term momentum is bullish. Support lies near ₹1,480–₹1,500, while resistance is around ₹1,650–₹1,700. Optimal entry zone: ₹1,500–₹1,580. Exit zone: ₹1,650–₹1,700 if momentum sustains.
📉 Trend Status: The stock is consolidating with upward bias. Sustained move above ₹1,700 could trigger a breakout, while failure to hold above ₹1,480 may lead to reversal.
Positive
- ✅ Trading above 50 DMA indicates short-term bullish bias.
- ✅ Strong ROCE (18.2%) and ROE (14.2%) show efficient capital use.
- ✅ Low debt-to-equity ratio (0.08) ensures financial stability.
- ✅ PEG ratio of 1.51 suggests reasonable valuation relative to growth.
Limitation
- ⚠️ Trading below 200 DMA signals medium-term weakness.
- ⚠️ Quarterly PAT decline (83.4 Cr vs 89 Cr) shows earnings pressure.
- ⚠️ High P/E ratio (46.7) compared to industry PE (33.0) suggests overvaluation.
Company Negative News
- ❌ Decline in quarterly PAT reflects margin pressures.
- ❌ Reduction in FII holdings (-3.49%) signals cautious foreign sentiment.
Company Positive News
- 🌟 Increase in DII holdings (+1.76%) shows strong domestic investor confidence.
- 🌟 EPS of ₹33.8 supports long-term fundamentals.
Industry
- 🏥 Industry PE at 33.0 is lower than Polymed’s PE (46.7), suggesting sector peers are more reasonably valued.
- 📊 Medical devices sector remains resilient with steady demand, though valuations are stretched.
Conclusion
Polymed is in a consolidation phase with short-term bullish momentum supported by technical indicators. Entry near ₹1,500–₹1,580 offers favorable risk-reward, while exits around ₹1,650–₹1,700 are optimal unless a breakout above ₹1,700 occurs. Fundamentals remain solid, but high valuation and recent profit decline warrant cautious optimism.