SUNPHARMA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | SUNPHARMA | Market Cap | 4,42,760 Cr. | Current Price | 1,845 ₹ | High / Low | 1,917 ₹ |
| Stock P/E | 101 | Book Value | 99.2 ₹ | Dividend Yield | 0.87 % | ROCE | 16.8 % |
| ROE | 17.8 % | Face Value | 1.00 ₹ | DMA 50 | 1,786 ₹ | DMA 200 | 1,733 ₹ |
| Chg in FII Hold | -0.18 % | Chg in DII Hold | 0.28 % | PAT Qtr | 872 Cr. | PAT Prev Qtr | 564 Cr. |
| RSI | 54.8 | MACD | 37.6 | Volume | 37,11,975 | Avg Vol 1Wk | 25,45,365 |
| Low price | 1,547 ₹ | High price | 1,917 ₹ | PEG Ratio | 1.39 | Debt to equity | 0.56 |
| 52w Index | 80.6 % | Qtr Profit Var | -24.6 % | EPS | 16.7 ₹ | Industry PE | 30.5 |
📊 Chart Analysis: SUNPHARMA is trading at ₹1,845, above both the 50 DMA (₹1,786) and 200 DMA (₹1,733), indicating bullish bias. RSI at 54.8 suggests neutral momentum, not overbought. MACD at 37.6 is positive, confirming upward momentum. Bollinger Bands show price moving toward the upper band, reflecting strong buying interest. Current volume (37.1L) is higher than the 1-week average (25.4L), showing strong participation.
📈 Momentum Signals: Short-term momentum is bullish, supported by MACD and price above moving averages. RSI indicates room for further upside before overbought conditions.
💹 Support & Resistance: Strong support lies near ₹1,786 (50 DMA) and ₹1,733 (200 DMA). Immediate resistance is at ₹1,917 (recent high). Optimal entry zone: ₹1,800–₹1,820. Exit zone: ₹1,900–₹1,915.
🔄 Trend Status: The stock is currently trending upward with strong momentum, though resistance near ₹1,917 may trigger short-term consolidation.
Positive
- ✅ Strong ROE of 17.8% and ROCE of 16.8% indicate efficient capital use.
- ✅ EPS of ₹16.7 supports valuation strength.
- ✅ PEG ratio of 1.39 suggests reasonable valuation relative to growth.
- ✅ DII holdings increased by 0.28%, showing domestic investor confidence.
Limitation
- ⚠️ Very high P/E of 101 compared to industry P/E of 30.5, indicating stretched valuation.
- ⚠️ Dividend yield of 0.87% is modest.
- ⚠️ Debt-to-equity ratio of 0.56 is manageable but higher than ideal for pharma peers.
Company Negative News
- 📉 Quarterly profit variation of -24.6% shows earnings pressure.
- 📉 FII holdings decreased by -0.18%, reflecting reduced foreign investor interest.
Company Positive News
- 📈 PAT improved sequentially from ₹564 Cr. to ₹872 Cr.
- 📈 Strong institutional support from DII investors.
Industry
- 💊 Pharma sector trading at industry P/E of 30.5, offering moderate valuations compared to SUNPHARMA’s premium.
- 💊 Sector supported by global healthcare demand and innovation in specialty drugs.
Conclusion
📌 SUNPHARMA is in a strong uptrend, trading above key moving averages with bullish MACD and volume support. Entry around ₹1,800–₹1,820 with exit near ₹1,900–₹1,915 offers a favorable setup. While fundamentals remain strong, high valuation multiples and recent profit decline are concerns. The stock is trending upward but may consolidate near resistance.
For broader context, you might explore a pharma sector outlook or compare SUNPHARMA with peers through a valuation comparison.