⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SUNPHARMA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | SUNPHARMA | Market Cap | 4,26,796 Cr. | Current Price | 1,780 ₹ | High / Low | 1,851 ₹ |
| Stock P/E | 97.8 | Book Value | 99.2 ₹ | Dividend Yield | 0.90 % | ROCE | 16.8 % |
| ROE | 17.8 % | Face Value | 1.00 ₹ | DMA 50 | 1,743 ₹ | DMA 200 | 1,712 ₹ |
| Chg in FII Hold | -0.43 % | Chg in DII Hold | 0.60 % | PAT Qtr | 872 Cr. | PAT Prev Qtr | 564 Cr. |
| RSI | 54.4 | MACD | 23.9 | Volume | 25,18,812 | Avg Vol 1Wk | 24,88,787 |
| Low price | 1,547 ₹ | High price | 1,851 ₹ | PEG Ratio | 1.34 | Debt to equity | 0.56 |
| 52w Index | 76.6 % | Qtr Profit Var | -24.6 % | EPS | 16.7 ₹ | Industry PE | 27.6 |
📊 Technical Analysis
- Chart Patterns: Stock trading near recent highs (₹1,851) with support at ₹1,740–₹1,750. Trendline shows steady upward movement.
- Moving Averages: Price (₹1,780) above both 50 DMA (₹1,743) and 200 DMA (₹1,712), confirming bullish trend.
- RSI: 54.4 — neutral, suggesting balanced momentum.
- MACD: 23.9 — bullish crossover, indicating positive momentum.
- Bollinger Bands: Price near upper band, showing strength but risk of short-term pullback.
- Volume Trends: Current volume (25.1 Lakh) slightly above 1-week average (24.8 Lakh), confirming healthy participation.
📈 Momentum & Signals
- Short-term Momentum: Strong, supported by MACD bullish crossover and price above moving averages.
- Entry Zone: ₹1,740–₹1,760 (support region).
- Exit Zone: ₹1,820–₹1,850 (resistance region).
- Trend Status: Trending upward with bullish bias.
✅ Positive
- Strong ROE (17.8%) and ROCE (16.8%) indicate efficient capital use.
- EPS at ₹16.7 with consistent profitability.
- DII holdings increased (+0.60%).
- Stock trading above both 50 DMA and 200 DMA, confirming medium-term strength.
⚠️ Limitation
- High P/E ratio (97.8) compared to industry average (27.6), indicating expensive valuation.
- PEG ratio at 1.34, showing moderate valuation risk.
- FII holdings decreased (-0.43%).
- Book value (₹99.2) far below current price, suggesting stretched valuation.
📉 Company Negative News
- Quarterly profit declined (₹872 Cr vs ₹564 Cr, -24.6%).
- High valuation multiples may limit upside potential.
📈 Company Positive News
- Strong balance sheet with moderate debt-to-equity ratio (0.56).
- Consistent dividend yield (0.90%).
- Stock near 52-week highs, reflecting investor confidence.
🏭 Industry
- Pharma sector PE at 27.6, showing moderate valuations compared to Sun Pharma’s premium pricing.
- Industry supported by global demand for generics and specialty drugs.
🔎 Conclusion
- Sun Pharma is trending upward with strong technical signals.
- Entry near ₹1,740–₹1,760 support zone, exit around ₹1,820–₹1,850 resistance.
- Short-term momentum is bullish, but valuations remain stretched.
- Best suited for momentum traders; long-term investors should be cautious of high P/E.