FLAG BREAKOUT + STRONG FUNDAMENTAL = AUTO STOCK ON THE MOVE SUBROS ON FIRE
Subros Ltd has formed and broken out of a bullish flag pattern on the daily chart, supported by strong volume, indicating continuation of its upward trend.
🔍 Technical Analysis:
Pattern: Bullish flag breakout
Breakout Confirmation: Strong bullish candle above consolidation (flag zone) with volume
Strong uptrend, supported by both EMA 20 and EMA 50
Support Zone: ₹950–₹960 (previous flag top)
Volume Spike: Confirms bullish momentum on breakout
QUIK FUNDAMENTAL KEYS WHICH CONFIRM ITS BULLISHNESS.
📈 Price Strength: Strong momentum with recent 52-week high
💰 ROCE: ~17.3% (efficient capital usage)
🏦 ROE: ~12.5% (shareholder return strength)
📉 Debt to Equity: ~0.2 (low debt = financially stable)
📊 Net Sales Growth: ~20% YoY (consistent top-line growth)
🔧 Sector: Auto Ancillary – strong demand recovery cycle
💡 Trade Rationale:
Subros is technically strong with a clean flag breakout and volume confirmation. Fundamentals support this move, with consistent revenue growth, efficient capital usage, and a low-debt structure.
TRADE PLAN :
Entry: Around ₹1000 (CMP) or on dip near ₹960–₹970 (retest)
Stop Loss: ₹940 (below consolidation)
Target 1: ₹1065
Target 2: ₹1120–₹1140
Risk-Reward: ~1:2.5+
