TECHM Long - Monthly - 26th Feb 2017 Long

TECH MAHINDRA LTD.BSE

Description

⋅ Feb 26, 2017 2:54 PM

TECHM 26th Feb 2017

Trade

Date of Trade (Time if applicable): 26 Feb 2017 Sunday Evening 07:50 pm

Entry Date: Buy Stop order is placed.

Trade Entry:
Market:BSE
Stock: TECHM - Tech Mahindra
Long/Short: Long
Current Price: 505.80
Entry Price: 523.52
Time Frame: Monthly

Type of Trade:
Long Term Trade

Reason For Trade:
IT sector is a strong sector and India has dominance and manpower for IT industry
Price has bounced from a strong support level.
RSI is showing positive divergence and making upper highs
RSI is above 50
RSI has broken a strong trendline
RSI is about to cross 20 SMA and is above 50 level
MACAD is crossing over at zero line which is a good indication
Good Risk Reward ratio

Market Cap.: ₹ 49,027.20 Cr. Current Price: ₹ 503.65 Book Value: ₹ 171.05 Stock P/E: 15.49 Dividend Yield: 2.37% Face Value: ₹ 5.00 52 Week High/Low: ₹ 564.00 / ₹ 405.50

QoQ Profits: 31.31% Quick ratio: 2.03 EVEBITDA: 9.29

Stop:
455.11

Target:
663.24

Pluses:
- Company is virtually debt free.
- Company has good consistent profit growth of 26.18% over 5 years
- Company has a good return on equity (ROE) track record: 3 Years ROE 28.07%
- Company has been maintaining a healthy dividend payout of 25.13%
Net profit of Dec 2016 quarter is higher than previous quarter
Annual TTM results are near previous year

Compounded Sales Growth:
10 Years:27.72% 5 Years:38.81% 3 Years: 56.79% TTM:10.89%

Compounded Profit Growth:
10 Years:21.39% 5 Years:26.18% 3 Years:31.89% TTM:20.16%

Return on Equity:
10 Years:30.64% 5 Years:28.39% 3 Years:28.07% TTM:23.36%

Net cash Flow of March 2016 is higher considerably higher than previous years.

Minuses: Potential problems with the trade
The price may range for a while
Q3 results can decide the movement of the stock in South direction

Brief Summary of emotions:
Confident

Stock added or sold during the current trade:
Some stocks can be sold at around 584