NAVKAR - Investment stock with bullish reversal

amankavi Updated   
Scrip can be seen taking bullish reversal as prior trends however, expecting the scrip to surpass 52-week highs this time. Any pullback also could be opportunity to buy fundamentally sound company averaging down the price as previous trends shows the crucial support line to be strong reversal zone

Noticing the current price action, The scrip didnt correct much during corrections in March'18 and risk to reward ratio is also favorable

1) Reserves more than Debts with no stocks pledged
2) The company had recieved approval for Vapi terminal which could add further to its revenues
3) Undervalued compared to its peers , P/B favorable
4) The stock is highly under owned by retail investors less then 2% because of which the trading volumes are very low .69% promoter holding and 29 % institutional and Mutual fund holding. Higher rate of institutional buying/holding in FY18 makes it a conventional buy however, Promoter holdings have gone bit down
5) Bullish MACD cross

1) Low profit growth
2) P/S on higher side

However, one can invest aiming for 52-week highs in another 2-3 months seeing the previous trends. Moreover, The company can show progressive results with Vapi terminal also operational now adding substantially to the company revenues heneforth increasing profit margins
Trade active: Company posted good results You and QoQ basis


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