Emmbi Industries Ltd Technically checks many boxes.
Emmbi Industries Ltd.
📅 Timeframe: Daily Chart
Technical Observations
1. Cup and Handle Breakout:
2. Inverse H&S
3. Base Breakout
The stock has formed a classic Cup and Handle and an inverse Head and Shoulders pattern, which is a bullish continuation setup.
3. Three White Soldiers:
Post-breakout, the stock formed Three White Soldiers (three consecutive bullish candles), a strong bullish indicator.
Fundamental Snapshot
💼 Market Cap: ₹300 Crores (Small Cap).
📊 Current Price: ₹169.
📈 High/Low: ₹172 / ₹87.6 (52-week range).
📚 Book Value: ₹104 (Price to Book Ratio: ~1.63).
📉 PE Ratio: 29.6 (relatively higher compared to industry standards).
💸 Dividend Yield: 0.18% (low yield).
📊 ROCE: 8.43% (moderate efficiency).
📈 ROE: 6.03% (average return for shareholders).
Key Levels to Watch
-Entry Point: ₹172 or wait for multiyear Breakout level
175.
-Stop Loss (SL): ₹129.73 (Below the handle and
consolidation support).
🎯 Targets:
All-Time High (ATH): ₹262.45 (Medium-to-long-term target).
Strengths of the Setup
✅ Volume Confirmation:
Breakout backed by rising volumes, indicating strong market interest.
✅ Trend Alignment:
Stock is trading well above the 50-day and 200-day moving averages, supporting the bullish trend.
✅ Healthy Consolidation:
The long consolidation before the breakout reduces the chance of a false move.
Risks and Considerations
⚠️Microcap Company.
⚠️ Valuation Concerns:
PE ratio (29.6) is on the higher side, indicating the stock might be overvalued compared to peers.
⚠️ Dividend Yield:
At 0.18%, the dividend yield is minimal, which may not attract dividend-seeking investors.
⚠️ Broader market conditions (e.g., Nifty 50, Nifty 500) should support bullish sentiment 📉.
Trading Plan
📌 Buy Above: ₹172.0 or wait for breakout of 175
📌 Stop Loss (SL): ₹129.73 (Strictly on closing basis)
📌 Targets:
Medium-Term: ₹262.45 🎯
📊 Watch for a pullback retest of ₹159.00 with rising volumes. It can be an excellent re-entry or adding opportunity.
Do not forget to position size since the SL is extremely Deep. Risk management is the key here. Market conditions are bad and unpredictable. Please excuse Ttypos if any.
📅 Timeframe: Daily Chart
Technical Observations
1. Cup and Handle Breakout:
2. Inverse H&S
3. Base Breakout
The stock has formed a classic Cup and Handle and an inverse Head and Shoulders pattern, which is a bullish continuation setup.
3. Three White Soldiers:
Post-breakout, the stock formed Three White Soldiers (three consecutive bullish candles), a strong bullish indicator.
Fundamental Snapshot
💼 Market Cap: ₹300 Crores (Small Cap).
📊 Current Price: ₹169.
📈 High/Low: ₹172 / ₹87.6 (52-week range).
📚 Book Value: ₹104 (Price to Book Ratio: ~1.63).
📉 PE Ratio: 29.6 (relatively higher compared to industry standards).
💸 Dividend Yield: 0.18% (low yield).
📊 ROCE: 8.43% (moderate efficiency).
📈 ROE: 6.03% (average return for shareholders).
Key Levels to Watch
-Entry Point: ₹172 or wait for multiyear Breakout level
175.
-Stop Loss (SL): ₹129.73 (Below the handle and
consolidation support).
🎯 Targets:
All-Time High (ATH): ₹262.45 (Medium-to-long-term target).
Strengths of the Setup
✅ Volume Confirmation:
Breakout backed by rising volumes, indicating strong market interest.
✅ Trend Alignment:
Stock is trading well above the 50-day and 200-day moving averages, supporting the bullish trend.
✅ Healthy Consolidation:
The long consolidation before the breakout reduces the chance of a false move.
Risks and Considerations
⚠️Microcap Company.
⚠️ Valuation Concerns:
PE ratio (29.6) is on the higher side, indicating the stock might be overvalued compared to peers.
⚠️ Dividend Yield:
At 0.18%, the dividend yield is minimal, which may not attract dividend-seeking investors.
⚠️ Broader market conditions (e.g., Nifty 50, Nifty 500) should support bullish sentiment 📉.
Trading Plan
📌 Buy Above: ₹172.0 or wait for breakout of 175
📌 Stop Loss (SL): ₹129.73 (Strictly on closing basis)
📌 Targets:
Medium-Term: ₹262.45 🎯
📊 Watch for a pullback retest of ₹159.00 with rising volumes. It can be an excellent re-entry or adding opportunity.
Do not forget to position size since the SL is extremely Deep. Risk management is the key here. Market conditions are bad and unpredictable. Please excuse Ttypos if any.
Related publications
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.