JTL Infra Ltd 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 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 February 2022, JTLINFRA has given a breakout today. Buy with a stop just below ₹242. (One can use the low of the previous bar/supertrend indicator/previous support point/fixed percentage from the buy price as stop loss also)
Strengths: -
1. TTM Sales growth is at 86% and TTM Profit growth is at 97%

2. 10 year and 5 year average ROE more than 15%

3. Debt to equity at 0.54(less than 1 is good), Interest Coverage at 13.5(greater than 3 is good), Current Ratio at 2.00(greater than 1.5 is good), FCF to CFO at 447%

4. Debtor days have decreased from 80 to 36

5. on 5th September 2022 credit rating agency Care has said, "The ratings assigned to the bank facilities and commercial paper issue of JTL Infra Limited (JTL) derives strength from its experienced promoters with an established track record of operations in steel pipes industry, reputed client base, healthy growth in scale of operations and sustained profitability margins over the past three years through FY22 (refers to the period April 01 to March 31). (Please go through the credit rating report for better understanding)

Weaknesses: -
1. Stock is trading at 11.1 times its book value

2. Promoter holding has decreased over the last quarter: -1.23% (decreasing since march 2021)

3. On 19th September 2022 credit rating agency Infomerics has said, "The rating has been downgraded and migrated to ‘ISSUER NOT COOPERATING’ category due to non-submission of information and lack of management co-operation.

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 advice from your advisors before jumping in.


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