Asset: Va Tech Wabag Ltd (WABAG)
Breakout Level: 1526
Potential Target: 1785
Stop Loss: 1470
Timeframe: Short to Medium term
Risk to Reward ratio : 1:2.4
Rationale:
Fundamentals -
Fundamentally decent stock with the following attributes:
* ROCE - 20%
* ROE - 14.9%
* Debt to Equity - 0.17
* Stock PE 32.2 / Industry PE - 32.8 || Stock PBV 4.44 / Industry PBV 4.2 - Company is not overpriced
* EPS / Revenue - Increasing over last 6 months
Technicals -
* Overall structure - Forming a large cup on weekly charts
* Multiple timeframe analysis - Stock poised for up move as the daily / weekly / monthly charts are showing formation of a cup (over 5 months)
* On daily charts, the price surged ~8% yesterday with increased volumes and crossed the 200 DMA
* The 10 DMA is above the 20 DMA and hints towards continued up move
* Increasing momentum / RS
* ADR 4% / seeing some sluggishness
Market analysis
* Forecasted for ~50% further increase
* Promoter holding although less is steady
* FIIs have kept mostly similar holding levels
* MFs and DIIs are increasing stake
* Retail reducing
Cons
* ADR is low
* Considering that the price has gapped up, there could be some pull back
This analysis is for educational purposes only and should not be considered as financial advice. Trading and investing in financial markets involve significant risk, and past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any trading or investment decisions. The author is not responsible for any financial losses or damages that may result from the use of this information.
Breakout Level: 1526
Potential Target: 1785
Stop Loss: 1470
Timeframe: Short to Medium term
Risk to Reward ratio : 1:2.4
Rationale:
Fundamentals -
Fundamentally decent stock with the following attributes:
* ROCE - 20%
* ROE - 14.9%
* Debt to Equity - 0.17
* Stock PE 32.2 / Industry PE - 32.8 || Stock PBV 4.44 / Industry PBV 4.2 - Company is not overpriced
* EPS / Revenue - Increasing over last 6 months
Technicals -
* Overall structure - Forming a large cup on weekly charts
* Multiple timeframe analysis - Stock poised for up move as the daily / weekly / monthly charts are showing formation of a cup (over 5 months)
* On daily charts, the price surged ~8% yesterday with increased volumes and crossed the 200 DMA
* The 10 DMA is above the 20 DMA and hints towards continued up move
* Increasing momentum / RS
* ADR 4% / seeing some sluggishness
Market analysis
* Forecasted for ~50% further increase
* Promoter holding although less is steady
* FIIs have kept mostly similar holding levels
* MFs and DIIs are increasing stake
* Retail reducing
Cons
* ADR is low
* Considering that the price has gapped up, there could be some pull back
This analysis is for educational purposes only and should not be considered as financial advice. Trading and investing in financial markets involve significant risk, and past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any trading or investment decisions. The author is not responsible for any financial losses or damages that may result from the use of this information.
Trade active
Price surged and we can expect some pullback before it begins to continue its movement up.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.