INOXWIND Long 04.4.2017 - Against the Wind

NOXWIND Inox Wind Ltd 04.4.2017

Trade

Date of Trade : 4 Apr 2017

Entry Date: Buy Stop

Trade Entry
Market: BSE
Stock: INOXWIND Inox Wind Ltd
Long/Short: Long
Current Price: 174.60
Entry Price:176.30
Time Frame: Daily


Type of Trade: Swing trade

Reason For Trade:
Fundamentally strong stock
Technically the setup is ok except the price is below 50 SMA
There is strong support
MACAD cross over is about to happen (However, it is below zero line)
Promoters stake is high in the stock
At around same level stock Price has bounced from 168 to 227

Stop: 170.93

Target: 183.62

Pluses:
Fundamentally strong stock
Company is expected to give good quarter
Company has good consistent profit growth of 135.77% over 5 years
Company has a good return on equity (ROE) track record: 3 Years ROE 31.90%

Compounded Sales Growth:
10 Years: %
5 Years: 122.02%
3 Years: 57.16%
TTM: 16.15%

Compounded Profit Growth:
10 Years: %
5 Years: 135.77%
3 Years: 46.8%
TTM: -16.88%

Return on Equity:
10 Years: %
5 Years: 37.21%
3 Years: 31.9%
TTM: 27.84%


Minuses:
Though the company is reporting repeated profits, it is not paying out dividend
Last years 2016 Net Profit was in negative
Below 50 SMA
Stock in down trend