Orbit Exports 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 October 2018, NSE:ORBTEXP has given a breakout today. Buy with a stop just below ₹126 (one can use a fixed percentage stop loss (e.g. 20% below the buy price) as well).
Strengths: -
1. TTM Sales growth is at 102%, TTM Profit growth is at 332%, June quarter sales growth is at 158% and profit growth is at 520%
2. 10 year average ROE more than 15%
3. Debt to equity at 0.24(less than 1 is good), Interest Coverage at 14.8(greater than 3 is good), Current Ratio at 2.14(greater than 1.5 is good)
4. ICRA has reaffirmed the ratings of the company on 21st July 2022 (please go through the credit rating report for better understanding)
5. ADX > 30 on daily chart
6. Debtor days came down from 102 to 76 in March 2022
Weaknesses: -
1. Stock is trading at 2.37 times of its book value
2. The company has delivered a poor sales growth of -1.16% over past five years
3. Company has a low return on equity of 8.20% for last 3 years
4. Dividend payout has been low at 11.8% of profits over last 3 years
5. FIIs decreased stake from 0.18 in March 2022 to 0.02 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.
