LINDEINDIA (Positional Study)


Chart Structure:
- Price approaching All-time High.
- From Feb. to April '21 stock rallied about 100% and took a breather of around 20%
- Stock is consolidating for the last 4 months, forming a weak Reverse Head & Shoulder type of pattern.

Volume & Deliveries:
- Last 18 sessions witnessed huge volume activity in the stock.
- Total Traded Quantity from 27th July was 27.71 lac shares.
- Total shares delivered were 14.48 lac shares
- Stock has seen such deliveries before the last rally.

Relative Strength:

- Stock is already RS+ in the longer term.
- It has started outperformance again in a shorter (55) term.
- Spread breakout has happened a week ago.

Financial Performance:
- Co. saw Sales growth of 18% QoQ & 109% YoY
- Co. saw Profit growth of -77% QoQ & 255% YoY
- There was a negative profit growth(QoQ) in Net profit because of 14% tax benefit enjoyed by co. in last quarter & Exceptional income from sale of land, due to which the NP & EPS shot up unexpectedly.
- While comparing PBT , we get a 3% growth

Why stock might go further up?
- Linde produces industrial gases required for the Manufacturing of Steel along with other industrial gases.
- From April to June Steel Production in India has gone from 8300 MT to 9400 MT which is further expected to increase.
- Manufacturing PMI data also saw an increase from June to July (almost 15% in value)
- With the tailwind in the steel sector (which indicates an increase in steel production in coming Quarters) Linde might also benefit from the same.