TORNTPHARM - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.9

📈 TORNTPHARM is currently in a consolidation phase with neutral momentum and signs of accumulation. Entry zone: ₹3,500–₹3,550; exit zone: ₹3,610–₹3,675. Watch for breakout above ₹3,675 with volume confirmation.

📊 Technical Overview

• Price Action: Trading at ₹3,550, slightly below 50-DMA (₹3,563) and above 200-DMA (₹3,394), indicating medium-term strength but short-term hesitation.
• RSI (47.7): Neutral zone, suggesting lack of strong momentum in either direction.
• MACD (4.29): Mild bullish crossover, indicating early signs of upward momentum.
• Bollinger Bands: Price near mid-band, suggesting range-bound movement with breakout potential.
• Volume: Above 1-week average, indicating accumulation and rising interest.
• Support Zones: ₹3,500 (S1), ₹3,394 (S2)
• Resistance Zones: ₹3,610 (R1), ₹3,675 (R2)

✅ Positive

• Strong ROCE (27.8%) and ROE (26.2%) reflect excellent capital efficiency.
• EPS of ₹58.2 supports valuation and earnings visibility.
• Quarterly PAT increased from ₹492 Cr. to ₹551 Cr., a 17.5% jump.
• Price trading above 200-DMA confirms long-term bullish bias.

⚠️ Limitation

• Stock P/E (60.5) is significantly higher than industry average (33.1), indicating premium valuation.
• PEG ratio of 2.48 suggests overvaluation relative to growth.
• RSI and MACD show only mild momentum, limiting short-term upside.
• Dividend yield of 0.90% is modest for income-focused investors.

📉 Company Negative News

• Decline in FII holdings (-0.17%) reflects cautious foreign sentiment.
• Stock trading below 50-DMA may signal short-term resistance.

📈 Company Positive News

• DII holdings increased (+0.63%), showing domestic institutional support.
• Strong performance in branded generics and domestic formulations driving growth.

🏢 Industry

• Pharmaceutical sector benefits from stable demand and innovation in specialty drugs.
• Industry P/E of 33.1 reflects moderate valuation across peers.

🧭 Conclusion

• TORNTPHARM is consolidating with neutral technical indicators and signs of accumulation.
• Entry zone: ₹3,500–₹3,550; exit zone: ₹3,610–₹3,675 for short-term swing trades.
• Long-term investors may accumulate on dips, supported by strong fundamentals and sector resilience.