Boarded the long distance train

Boarded the counter at 9.70 I will keep adding stock on the upside. No intention of averaging on down side. 7.50 is my stop loss on daily closing basis.

2 hammer candle's with below avg volume suggests sellers have lost interest in selling below the consolidation breakout. Price is getting recovered from 9.20 which means buyers are now easily taking control without much resistance from sellers. RSI is showing positive divergence. Maximum big volume has occured in the marked zone but price didn't move much. If sellers were selling then somebody was acquiring stock at lower levels.

FundaMENTAL : Low debt equity of 0.10 , Approx 38 crs liquidity in book, BB+ stable rating , 0 promoter pledge, clean audit certificate without any remarks, new products launched in last year, expansion in southern market by increasing 3600 MT capacity . Moving to asset light model. Focus shifted from product driven to consumer oriented company. Increased sales and profit in pandemic hit 2020. Omni channel presence.

Cons : low ROCE , ROE. High inventory . High raw material cost. High bad debts ( 40%) . Highest PE in industry. Very small company . High retail investors holding at 23% .

Disc : it's not an investment advice to buy or sell


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