Asset: Ashapura Minechem Ltd (ASHAPURMIN)
Entry Level: 404 (wait for some retracement)
Potential Target: 530
Stop Loss: 378 (~4.5% risk)
Timeframe: Short to Medium term
Risk to Reward ratio : 1:8
Rationale:
Fundamentals -
Fundamentally decent stock with the following attributes:
* ROCE - 17.1%
* ROE - 26.6%
* Debt to Equity - 0.94
* Stock PE 13.6 / Industry PE - 15.8 || Stock PBV 3.17 / Industry PBV 2.01 - Company is slightly underpriced
* EPS / Revenue - Increasing but pretty flat
* ADR is 4%
Technicals -
* Overall structure - Price is making a VCP pattern. The moving averages have aligned properly to create a launch pad. Price moved up 6% in the last trading session indicating potential beginning of institutional buying.
* Relative Strength is picking up.
* Multiple timeframe analysis - Weekly structure is surfing the 10 WMA
* Volumes have remained subdued and even in the last trading session it did not move much
Market analysis
* Promoter holding has gone up and the pledged shares have been bought back
* MFs, DIIs and FIIs have all started to increase their holding with FIIs being the highest
* Retail holding is going down
* Coal and Mining sector is seeing some positive movement in other stocks
Cons
* Volumes have remained tight and momentum is slow.
* Recommended to pyramid up in this stock
This analysis is for educational purposes only and should not be considered as financial advice. Trading and investing in financial markets involve significant risk, and past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any trading or investment decisions. The author is not responsible for any financial losses or damages that may result from the use of this information.
Entry Level: 404 (wait for some retracement)
Potential Target: 530
Stop Loss: 378 (~4.5% risk)
Timeframe: Short to Medium term
Risk to Reward ratio : 1:8
Rationale:
Fundamentals -
Fundamentally decent stock with the following attributes:
* ROCE - 17.1%
* ROE - 26.6%
* Debt to Equity - 0.94
* Stock PE 13.6 / Industry PE - 15.8 || Stock PBV 3.17 / Industry PBV 2.01 - Company is slightly underpriced
* EPS / Revenue - Increasing but pretty flat
* ADR is 4%
Technicals -
* Overall structure - Price is making a VCP pattern. The moving averages have aligned properly to create a launch pad. Price moved up 6% in the last trading session indicating potential beginning of institutional buying.
* Relative Strength is picking up.
* Multiple timeframe analysis - Weekly structure is surfing the 10 WMA
* Volumes have remained subdued and even in the last trading session it did not move much
Market analysis
* Promoter holding has gone up and the pledged shares have been bought back
* MFs, DIIs and FIIs have all started to increase their holding with FIIs being the highest
* Retail holding is going down
* Coal and Mining sector is seeing some positive movement in other stocks
Cons
* Volumes have remained tight and momentum is slow.
* Recommended to pyramid up in this stock
This analysis is for educational purposes only and should not be considered as financial advice. Trading and investing in financial markets involve significant risk, and past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any trading or investment decisions. The author is not responsible for any financial losses or damages that may result from the use of this information.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.