RHIM: Towards Breakout from Strong Retracement
RHI Magnesita India Ltd
PC-A = PC-B
#WondersOfPC
Technicals:
• Recently touched high at Point P1 & went down to Point P2 of PC-A
• From P2, retraced strongly and entered PC-B with today's gap up, also crossed midline of PC-B
• Taller green towers indicating strong built up for bullish view
• RSI entered in 60 Zone
• Relative strength is green
Fundamentals:
It is a market leader for special refractories in India and has many global customers for its international quality products.
Future outlook is stronger as company is into high capex and acquisitions for capacity expansion.
Recently, acquired Dalmia, unlisted leader in Refactories.
As per the management, on Acquired asset:
At peak can do revenues of ₹1500cr
Margins of 15%-16% by FY24
For RHI
Market share goes to 33%
Peak net debt will be ₹1300cr
Point of caution is for the Capex and acquisitions Debt portion is increased, Debt to Equity is around 1:1, earlier company was DebtFree.
Good pick for long term portfolio.
Today's move is because of the same reason only.
For positional trade:
Enter at CMP or on closure basis if today closes above 710, can enter at tomorrow's green opening
Short term TGT: 830 and then 925
Positional SL on closure basis: 648 (Bcoz of today's strong move, Sl is at lower levels)
Disc: Invested from Lower levels
PC-A = PC-B
#WondersOfPC
Technicals:
• Recently touched high at Point P1 & went down to Point P2 of PC-A
• From P2, retraced strongly and entered PC-B with today's gap up, also crossed midline of PC-B
• Taller green towers indicating strong built up for bullish view
• RSI entered in 60 Zone
• Relative strength is green
Fundamentals:
It is a market leader for special refractories in India and has many global customers for its international quality products.
Future outlook is stronger as company is into high capex and acquisitions for capacity expansion.
Recently, acquired Dalmia, unlisted leader in Refactories.
As per the management, on Acquired asset:
At peak can do revenues of ₹1500cr
Margins of 15%-16% by FY24
For RHI
Market share goes to 33%
Peak net debt will be ₹1300cr
Point of caution is for the Capex and acquisitions Debt portion is increased, Debt to Equity is around 1:1, earlier company was DebtFree.
Good pick for long term portfolio.
Today's move is because of the same reason only.
For positional trade:
Enter at CMP or on closure basis if today closes above 710, can enter at tomorrow's green opening
Short term TGT: 830 and then 925
Positional SL on closure basis: 648 (Bcoz of today's strong move, Sl is at lower levels)
Disc: Invested from Lower levels
Note
Breakout Triggered and confirmed.
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