Haldyn Glass Breakout

Aug 12, 2022

1. Buy or Sell at your own risk
2. Don't risk more than 1%-2% of your capital as stop loss
3. Position Size formula:- Stop Loss Amount/(Buy Price-Initial Stop Loss Price)
4. Sell on RSI close below 30 (or use any other method of your liking)
5. Some other ways to sell stocks can be
a. 25% or 50% up in three weeks or less
b. Weekly tailing tops with high volume
c. Exhaustion gaps
d. Heavy daily volume without further upside
e. Largest one day price drop

After a consolidation since January 2018, HALDYNGL has given a breakout today. Buy with a stop just below ₹50.

Strengths: -
1. June 2022 Sales growth is at 71% and Profit growth is at 100%

2. Debt to equity at 0.07 (less than 1 is good), Interest Coverage at 26.8 (greater than 3 is good), Current Ratio at 3.12 (greater than 1.5 is good), FCF to CFO at 56.5%

3. Dividend yield at 0.98% (consistent dividend payer since 2011)

4. Credit rating agency has reaffirmed the ratings of the company on (please go through the credit rating report for better understanding)

5. Promoter stake increasing since March 2021

6. ADX > 30 on daily chart

Weaknesses: -
1. The company has delivered a poor sales growth of 4.38% over the past five years

2. The company has a low return on equity of 6.77% for last 3 years

3. Earnings include an other income of Rs.6.12 Cr

Disclaimer: I am not SEBI Registered. Do trade or invest at your own risk, I am not responsible for any losses and won't claim anything from your profits either. Take financial advices from your advisors before jumping in.