convergence can occur when the moving averages move towards each other and can pullback the scrip near support levels due to short selling or shortes
1) Debt free (The company recently made announcement that the pledged equity shares of promotors have been released in tune of 5cr.)
We are also encouraged by recent promoter activity (sequential improvement in share holdings), debt pay-off (zero debt company) and the release of pledge shares.
2) Auto sector booming which would eventually benefit the company in long run
Bhansali Engineering Polymer's ( BEPL ) improving trajectory, strengthening and traction in capacity expansion adds to our conviction on the stock.
However, Higher other expenses (63% QoQ) due to a forex loss ( Rs 6.82 crore) and debtor write-off ( Rs 8.56 crore) dented net profit sequentially (-2% QoQ). but the company should recover for it in next quarter
1) P/B on higher side: 13.99
2) Stock P/E: 37.28 on higher side
3) P/S on higher side
however, seeing the growth history, The cons can be overshadowed by long term investors showing conviction in the company
(Essential checks ratings show the company is safe to invest in terms of solvency and good performance in past 9 years)
When the MACD is negative (comes below the zero line) this signals that the shorter term is below the longer, which suggests that the current price has downside momentum
1) Doji star candlestick at downtrend - Upon seeing a Doji in an overbought or oversold condition, an extremely high probability reversal situation becomes evident. When a Doji appears, it is demonstrating that there is indecision now occurring at an extreme portion of a trend.
2) Oversold situation - RSI
3) Histogram of MACD completing its formation from below
Liked that Promoters have started buying good quantities from open market :