JK Paper breakout1. Buy or Sell at your own risk
2. Don't risk more than 1%-2% of your capital as stop loss
3. Position Size formula:- Stop Loss Amount/(Buy Price-Initial Stop Loss Price)
4. Sell on RSI close below 30 (or use any other method of your liking)
5. Some other ways to sell stocks can be
a. 25% or 50% up in three weeks or less
b. Weekly tailing tops with high volume
c. Exhaustion gaps
d. Heavy daily volume without further upside
e. Largest one day price drop
After a consolidation since 18th April 2022, NSE:JKPAPER has given a breakout today. Buy with a stop just below ₹364.
Strengths: -
1. TTM Sales growth is at 61% and TTM Profit growth is at 107%
2. 5 year and 3 year average ROE more than 15%
3. Interest Coverage at 8.90 (greater than 3 is good) and Current Ratio at 1.56 (greater than 1.5 is good).
4. Dividend yield at 1% (consistent dividend payer since 2016)
5. DIIs increased stake from 0.24 in September 2020 to 5.86 in June 2022
6. ADX > 30 on daily chart
7. Credit rating agency has reaffirmed the ratings of the company on March 2022 (please go through the credit rating report for better understanding)
Weaknesses: -
1. The company has delivered a poor sales growth of 8.59% over the past five years
4. Debt to equity at 1.05 (less than 1 is good), FCF to CFO at only 3.58%
5. Borrowings increased to 3137Cr in March 2022 from 2736Cr in March 2021 (borrowings continuously increasing since March 2018)
6. FIIs decreased stake from 4.73 in June 2021 to 3.43 in June 2022
Disclaimer: I am not SEBI Registered. Do trade or invest at your own risk, I am not responsible for any losses and won't claim anything from your profits either. Take financial advices from your advisors before jumping in.
