POLYMED - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.6
| Stock Code | POLYMED | Market Cap | 15,282 Cr. | Current Price | 1,505 ₹ | High / Low | 2,938 ₹ |
| Stock P/E | 43.8 | Book Value | 285 ₹ | Dividend Yield | 0.23 % | ROCE | 18.2 % |
| ROE | 14.2 % | Face Value | 5.00 ₹ | DMA 50 | 1,737 ₹ | DMA 200 | 1,965 ₹ |
| Chg in FII Hold | -0.36 % | Chg in DII Hold | 0.31 % | PAT Qtr | 89.0 Cr. | PAT Prev Qtr | 87.9 Cr. |
| RSI | 27.4 | MACD | -79.1 | Volume | 69,222 | Avg Vol 1Wk | 1,10,694 |
| Low price | 1,451 ₹ | High price | 2,938 ₹ | PEG Ratio | 1.42 | Debt to equity | 0.08 |
| 52w Index | 3.61 % | Qtr Profit Var | 2.10 % | EPS | 34.4 ₹ | Industry PE | 33.5 |
📊 Chart & Trend Analysis: POLYMED is trading at ₹1,505, well below its 50 DMA (₹1,737) and 200 DMA (₹1,965), reflecting a strong bearish structure. RSI at 27.4 indicates oversold conditions, while MACD (-79.1) confirms heavy negative momentum. Bollinger Bands show price hugging the lower band, suggesting persistent selling pressure. Current volume (69,222) is lower than the 1-week average (1,10,694), indicating weak participation.
📈 Momentum Signals: Short-term momentum is very weak, with RSI in oversold territory and MACD sharply negative. A reversal signal may emerge if RSI climbs above 35 and price sustains above ₹1,600.
💡 Entry Zone: ₹1,450–₹1,500 (support near 52-week low)
🚪 Exit Zone: ₹1,730–₹1,800 (resistance near 50 DMA)
🔎 Trend Status: The stock is reversing downward with strong bearish bias, showing limited reversal potential unless RSI and volume recover.
Positive
- EPS at ₹34.4 reflects earnings capacity.
- Debt-to-equity ratio at 0.08 shows very low leverage.
- PEG ratio at 1.42 suggests fair growth-adjusted valuation.
- Increase in DII holding (+0.31%) signals domestic institutional support.
- Quarterly PAT improved slightly to ₹89 Cr. vs ₹87.9 Cr., showing resilience.
Limitation
- Price trading well below both 50 DMA and 200 DMA indicates weak technical strength.
- ROCE (18.2%) and ROE (14.2%) remain moderate compared to peers.
- Dividend yield at 0.23% is negligible.
- Volume collapse compared to weekly average signals lack of investor interest.
- 52-week index return at 3.61% is relatively muted.
Company Negative News
- Decline in FII holding (-0.36%) signals reduced foreign investor confidence.
- Stock has fallen sharply from its 52-week high of ₹2,938, showing strong bearish sentiment.
Company Positive News
- Increase in DII holding reflects domestic institutional optimism.
- Quarterly PAT growth of 2.10% highlights operational resilience despite weak momentum.
Industry
- Industry PE at 33.5 is lower than POLYMED’s 43.8, highlighting sector competitiveness.
- Medical devices and healthcare sector demand remains structurally strong, supported by rising healthcare investments.
Conclusion
⚖️ POLYMED is reversing downward with strong bearish bias, trading well below key moving averages and showing weak momentum. While fundamentals show low leverage, fair PEG ratio, and resilient profits, stretched valuations, weak efficiency metrics, and poor technical signals limit upside. Traders may consider entry near ₹1,450–₹1,500 with exit targets around ₹1,730–₹1,800. Sustained reversal requires RSI recovery above 35, stronger volume, and price stability above 50 DMA.