Key Events This Week
16 Feb: Technical momentum shifts to sideways trend
17 Feb: Mojo Grade downgraded to Sell amid mixed fundamentals
17 Feb: Valuation rating upgraded to Very Attractive
20 Feb: Technical momentum shifts mildly bullish
16 February: Technical Momentum Shifts to Sideways
Strides Pharma began the week with a neutral price movement, closing flat at Rs.857.35. Despite the lack of price change, technical analysis revealed a shift from a mildly bullish trend to a sideways momentum. Key indicators such as weekly and monthly MACD turned mildly bearish, while the Relative Strength Index (RSI) hovered neutrally around mid-50s on the weekly chart but dipped below 50 on the monthly timeframe, signalling potential short-term caution.
Bollinger Bands on the weekly chart suggested increased volatility with the price testing the lower band, while daily moving averages maintained a mildly bullish stance. The Know Sure Thing (KST) oscillator and Dow Theory signals were mixed, reflecting uncertainty. On-balance volume (OBV) showed mild bullishness weekly but was flat monthly, indicating a lack of strong conviction among investors. This complex technical landscape set a cautious tone for the week ahead.
17 February: Downgrade to Sell Amid Mixed Fundamentals and Technical Weakness
The stock experienced a strong rally on 17 Feb, rising 2.71% to close at Rs.880.55, its weekly high. This price surge coincided with the release of a MarketsMOJO downgrade from Hold to Sell, reflecting concerns over weakening technical momentum and long-term fundamental challenges despite attractive valuation metrics. The downgrade was driven by a shift in technical trend to sideways and bearish signals from MACD and RSI on weekly and monthly charts.
Fundamentally, Strides Pharma reported robust recent earnings growth, with Q3 FY25-26 net profit up 133.64% and PAT growth of 128.0%, alongside strong operating profit to interest coverage of 5.44 times. However, long-term fundamentals showed modest average ROCE of 7.27% and a high Debt to EBITDA ratio of 6.58 times, raising concerns about financial leverage. Additionally, promoter share pledge at 30.6% added to risk considerations.
Despite the downgrade, the stock’s valuation was upgraded to Very Attractive on the same day, with a low P/E ratio of 14.34 compared to sector peers and solid returns on capital employed and equity. This valuation shift highlighted the stock’s relative price appeal amid sector challenges, even as technical and fundamental caution prevailed.
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18 and 19 February: Price Consolidation Amid Mixed Technical Signals
Following the strong rally, Strides Pharma saw a slight pullback on 18 Feb, closing at Rs.875.55, down 0.57%, and further declined on 19 Feb by 0.74% to Rs.869.05. These declines occurred despite the Sensex gaining 0.43% on 18 Feb and falling 1.45% on 19 Feb, indicating some stock-specific profit-taking and technical consolidation.
The technical momentum remained mixed, with daily moving averages still mildly bullish but weekly and monthly MACD and KST oscillators maintaining bearish or neutral stances. Bollinger Bands suggested volatility contraction, and OBV was mildly bearish weekly but neutral monthly, reflecting cautious trading activity. The sideways trend persisted, consistent with the earlier downgrade and valuation reassessment.
20 February: Technical Momentum Shifts Mildly Bullish
On the final trading day of the week, Strides Pharma closed marginally lower at Rs.868.00, down 0.12%, but technical momentum showed signs of improvement. The daily moving averages turned mildly bullish, signalling tentative upward price traction. However, weekly and monthly MACD remained mildly bearish, and the KST oscillator continued to signal caution. RSI readings stayed neutral, and Bollinger Bands presented a mixed picture with weekly bearishness contrasting monthly bullishness.
Volume indicators such as OBV were mildly bearish weekly but neutral monthly, indicating limited volume support for sustained gains. The stock’s intraday range of Rs.865.00 to Rs.897.10 reflected some volatility but a general upward bias. Relative to the Sensex, which gained 0.41% on the day, Strides Pharma’s performance was subdued but showed resilience amid mixed technical signals.
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Daily Price Comparison: Strides Pharma vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-16 | Rs.857.35 | +0.00% | 36,787.89 | +0.70% |
| 2026-02-17 | Rs.880.55 | +2.71% | 36,904.38 | +0.32% |
| 2026-02-18 | Rs.875.55 | -0.57% | 37,062.35 | +0.43% |
| 2026-02-19 | Rs.869.05 | -0.74% | 36,523.88 | -1.45% |
| 2026-02-20 | Rs.868.00 | -0.12% | 36,674.32 | +0.41% |
Key Takeaways
Positive Signals: Strides Pharma outperformed the Sensex with a 1.24% weekly gain versus the benchmark’s 0.39%. The stock’s valuation metrics improved significantly, with a very attractive P/E of 14.34 and solid returns on capital employed and equity. Recent quarterly earnings growth was robust, with net profit up 133.64% and PAT growth of 128.0%, reflecting operational strength.
Cautionary Signals: Technical momentum shifted from mildly bullish to sideways early in the week, with bearish MACD and RSI readings on weekly and monthly charts. The Mojo Grade downgrade to Sell highlights concerns over weakening momentum and long-term fundamental risks, including high debt leverage and promoter share pledge of 30.6%. Volume indicators showed limited conviction, and the stock experienced short-term price consolidation midweek.
Overall Outlook: The mixed technical and fundamental signals suggest a period of consolidation and cautious trading. While valuation attractiveness and recent earnings growth provide a positive backdrop, the downgrade and technical weakness counsel prudence. Investors should monitor key support near Rs.865 and resistance around Rs.880 to gauge the next directional move.
Conclusion
Strides Pharma Science Ltd’s week was characterised by a nuanced interplay of valuation upgrades, technical momentum shifts, and a rating downgrade to Sell. The stock’s 1.24% weekly gain outpaced the Sensex, supported by strong recent earnings and attractive valuation multiples. However, mixed technical indicators and fundamental concerns, including leverage and promoter pledge risks, temper enthusiasm. The mild bullish shift in daily moving averages on Friday offers some optimism, but the absence of strong volume support and bearish momentum oscillators on longer timeframes suggest that investors should maintain a cautious stance. Monitoring evolving technical signals and fundamental developments will be crucial in assessing whether Strides Pharma can sustain upward momentum or face further consolidation.
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