Jagsonpal Pharma High Volume Breakout

akashbothra Updated   
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/(Buy Price-Initial Stop Loss Price)
4. Sell on initial stop loss hit or close below daily supertrend (for short term traders) or close below weekly supertrend (for long term investors)

After a TTM sales and profit growth of 24% and 83% respectively, NSE:JAGSNPHARM gave a high-volume breakout on Friday. As the market condition is volatile, one should wait for a pullback in this stock up to Rs .179-Rs. 187 range and then buy if stock prices breaks out above Rs . 213 with a stop loss just below the pullback low. Aggressive investors can buy with a stop at or below Rs . 174.

Other Fundamentals: -
1. ROE at 15%, ROCE at 18%, Promoter holding at 70.3%
2. Current Ratio at 1.95 (greater than 1.5 is good), Debt to Equity at 0.06 (less than 0.5 is good and debt came down from 38 in 2016 to 7 in Sep'21), Interest Coverage at 97 (greater than 3 is good)
3. FCF to CFO at 122% (company won't need to borrow for capex in future)
4. Debtor days improved from 49 in Mar'20 to 25 in Mar'21
5. FII position increased From 0.11 to 0.20 since Sep'21

Only one negative for this company: - The company has entered into an agreement with Suvinys Developers Private Limited
for Supply of Product Dydrogesterone. Suvinys Developers Private Limited will supply Dydrogesterone to Jagsonpal Pharmaceuticals Limited. Directors of Suvinys Developers Private Limited, Rajpal Singh Kochhar is also the managing director of Jagsonpal Pharmaceuticals. This may be a Red Flag.
Even in these market conditions this share is flexing its muscles.
Getting ready for a big move. Low volume flagpole pattern can be seen which is a bullish sign.
New breakout today.
Another strong move. Buy given on February 20th.
Jagsonpal up another 5%. Buy given on February 20th.
Jagsonpal up another 10%. Buy given on February 20th.
Jagsonpal up another 10%. Partial profits can be booked here. Buy given on February 20th.


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