SBC - Volatility Contraction Pattern (VCP) - Breakout -DailyAlways welcome for any comments with your feedback, or give it a like if you find it useful.
Name - SBC
Pattern - Volatility Contraction Pattern (VCP)
Timeframe - Daily
Status - Breakout
Volume - Very good volume
Cmp - 35.33
Target - 45
SL - 32
SBC Stock gave breakout on 5th Sep with very good volume.
Currently it looks like retesting the breakout level -32.
What is the Volatility Contraction Pattern (VCP)?
The VCP is a chart pattern that shows a series of price contractions, where each contraction is smaller than the previous one. This pattern typically forms during a consolidation phase after a significant price move. The idea is that as volatility decreases, the stock is preparing for a breakout.
Strengths
The company has shown a good profit growth of 74.06% for the Past 3 years.
The company has shown a good revenue growth of 19.74% for the Past 3 years.
Company’s PEG ratio is 0.86.
The company has an efficient Cash Conversion Cycle of 53.09 days.
Limitations
Promoter pledging has increased from 16.22% to 18.24% in 1 quarter.
Company has negative cash flow from operations of -11.79.
The company has a low EBITDA margin of 3.60% over the past 5 years.
The company is trading at a high PE of 84.37.
The company is trading at a high EV/EBITDA of 54.49.
