Entry: above 405 ie CMP SL - 355 TRGT1 - 800 TRGT2 - 1290.9 DURATION - 2 Years All numbers are weekly based
Bussiness model : Company produces Caustic Soda Lye, same is used in manufacturing of pulp and paper, alumina, Soap and Detergent petroleum products, few chemical production, water treatment, textiles, metal processing, mining, glass making.
Co was making around 690 net profit pre covid. Even at 10x PE Co should be valued around 6900 crs. Hence traget1 of around 800 Debt to equity : 110 crs debt vs 4771 crs reserve Debt can be paid back with 3 months profit. So assume Co is debt free. Net profit and sales continues to grow at stable rate only exception was 2020 Covid Year Cash flow consistent over past 12 year. Dividend yeild 1.9% Book value 660 vs Market price 420 (0.63 times) Promotor holding 46.28 above average Volume accumulation seen on daily chart with rectangular breakout of 11 months. Stock is currently in pull back mode after its breakout so it's a good buy around 405 or higher whenever stock gives green candle on daily chart.
There r few strong resistance (marked on chart black lines), so I'm not expecting quick profit booking on this script
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Trgt1 achieved book Part Profit and trail Stop loss for Target 2
Superb analysis