Likhitha Infrastructure Ltd for Long.
*What the company does ?
Likhitha Infrastructure Ltd is a company that specializes in tasks like laying pipelines for supplying gas, constructing canals for irrigation, building bridges over those canals, and carrying out maintenance work related to these projects since 1988.
Company's clients- GAIL, IHB, HPCL, IOCL, ONGC, IGL, IOAGPL, TGPL, IGGL, BPCL, etc.
*Future Outlook:
The company plans to expand into new areas by taking on Tankage Projects and is anticipating an order from IOCL (Indian Oil Corporation Limited).
It is exploring opportunities in regions like the Middle East, Africa, and other countries with high demand for Pipeline Infrastructure companies.
The company is in discussions with multiple Offshore T&I (Transportation and Installation) companies to enter the Offshore business.
Fundamentals
>>Company is debt-free.
>>Expected to have a strong quarter.
>>Impressive profit growth of 52.6% CAGR over the past 5 years.
>>Consistent track record of good return on equity (ROE), with a 26.6% ROE over the past 3 years.
Technical
>>The stock is consistently moving upwards in an uptrend.
>>The price of the stock is consistently reaching higher highs and higher lows.
>>This trend is supported by a strong level of support Formed by the stock.
>>The price has experienced some pullbacks recently and is now trading close to a support level.
>>We have an opportunity to potentially make a 10% gain from the current price level by placing a stop-loss order below the trend line.
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#trading #Ideas #Breakout #Analysis.
Likhitha Infrastructure Ltd is a company that specializes in tasks like laying pipelines for supplying gas, constructing canals for irrigation, building bridges over those canals, and carrying out maintenance work related to these projects since 1988.
Company's clients- GAIL, IHB, HPCL, IOCL, ONGC, IGL, IOAGPL, TGPL, IGGL, BPCL, etc.
*Future Outlook:
The company plans to expand into new areas by taking on Tankage Projects and is anticipating an order from IOCL (Indian Oil Corporation Limited).
It is exploring opportunities in regions like the Middle East, Africa, and other countries with high demand for Pipeline Infrastructure companies.
The company is in discussions with multiple Offshore T&I (Transportation and Installation) companies to enter the Offshore business.
Fundamentals
>>Company is debt-free.
>>Expected to have a strong quarter.
>>Impressive profit growth of 52.6% CAGR over the past 5 years.
>>Consistent track record of good return on equity (ROE), with a 26.6% ROE over the past 3 years.
Technical
>>The stock is consistently moving upwards in an uptrend.
>>The price of the stock is consistently reaching higher highs and higher lows.
>>This trend is supported by a strong level of support Formed by the stock.
>>The price has experienced some pullbacks recently and is now trading close to a support level.
>>We have an opportunity to potentially make a 10% gain from the current price level by placing a stop-loss order below the trend line.
If you've reached the end of this section, thank you for your patience. If you found this analysis helpful, please show your support by pressing the like button.
#trading #Ideas #Breakout #Analysis.
Trade active:
This trade has successfully aligned with our analysis, displaying a strong momentum, and is currently up by over 3%. One could go with the longer vision as well. Ultimately fundamentally strong Company and might be a multibagger in future.
Not a recommendation.
Not a recommendation.
Trade closed: target reached:
10% Done and Dusted.
We made a wonderful trade by taking advantage of a stock that was going up in price. When dealing with smaller companies, always pick a strong stock with good fundamentals and technical patterns to reduce risk.
We made a wonderful trade by taking advantage of a stock that was going up in price. When dealing with smaller companies, always pick a strong stock with good fundamentals and technical patterns to reduce risk.
The lesson is very simple If you find a strong fundamental backed, Small cap stock and you are lucky enough to buy it at low level then holding it for substantial period of time makes lot of sense.
Happy trading.