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POLYMED - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.6

Last Updated Time : 19 Mar 26, 08:58 pm

Technical Rating: 3.6

Stock Code POLYMED Market Cap 12,985 Cr. Current Price 1,281 ₹ High / Low 2,938 ₹
Stock P/E 37.4 Book Value 285 ₹ Dividend Yield 0.27 % ROCE 18.2 %
ROE 14.2 % Face Value 5.00 ₹ DMA 50 1,437 ₹ DMA 200 1,793 ₹
Chg in FII Hold -0.36 % Chg in DII Hold 0.31 % PAT Qtr 83.4 Cr. PAT Prev Qtr 89.0 Cr.
RSI 42.7 MACD -46.0 Volume 1,71,071 Avg Vol 1Wk 1,52,734
Low price 1,210 ₹ High price 2,938 ₹ PEG Ratio 1.21 Debt to equity 0.08
52w Index 4.09 % Qtr Profit Var -2.04 % EPS 33.8 ₹ Industry PE 33.9

📊 Technical Analysis

  • Chart Patterns: Stock is trading below both 50-DMA (₹1,437) and 200-DMA (₹1,793), showing weakness and continuation of downtrend.
  • Moving Averages: Current price ₹1,281 is under both DMAs, confirming bearish bias.
  • RSI: 42.7 — neutral zone, leaning toward weakness.
  • MACD: -46.0 — bearish crossover, momentum weak.
  • Bollinger Bands: Price near lower band, suggesting possible mean reversion.
  • Volume Trends: Current volume (1.71L) slightly above 1-week average (1.52L), showing active trading but not strong buying interest.

📈 Momentum & Signals

  • Short-term Momentum: Weak, consolidation with bearish undertone.
  • Entry Zone: ₹1,210–₹1,281 (support levels).
  • Exit Zone: ₹1,437–₹1,793 (resistance levels).
  • Trend Status: Stock is consolidating with bearish bias.

✅ Positive

  • PEG ratio of 1.21 suggests fair valuation relative to growth.
  • Low debt-to-equity (0.08), financially stable.
  • Strong book value (₹285) compared to current price, offering cushion.

⚠️ Limitation

  • High P/E (37.4) compared to industry average (33.9), slightly overvalued.
  • Quarterly PAT declined (₹83.4 Cr vs ₹89 Cr).
  • Weak ROCE (18.2%) and ROE (14.2%), showing moderate efficiency.

📰 Company Negative News

  • Quarterly profit variance -2.04% shows earnings pressure.
  • FII holdings decreased (-0.36%), showing reduced foreign investor confidence.

🌟 Company Positive News

  • DII holdings increased (+0.31%), showing domestic institutional support.
  • EPS of ₹33.8 provides a stable earnings base.

🏭 Industry

  • Industry P/E at 33.9, slightly lower than company’s P/E (37.4), suggesting sector peers may be more attractively priced.
  • Medical devices sector remains resilient with long-term demand outlook.

🔎 Conclusion

  • Stock is consolidating near support with weak momentum.
  • Short-term traders may consider entry near ₹1,210–₹1,281 with exit around ₹1,437–₹1,793.
  • Medium-term investors should be cautious due to weak efficiency metrics despite fair valuation.

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