Global Offshore Services Ltd going strong.Technical and Fundamental Anaylysis for Global Offshore Services Ltd. If you like the analysis, please do not hesitate to give boost to the stock idea.
### Price Action Analysis
1. **Head and Shoulders Pattern:**
- **Left Shoulder:** Formed around mid-2022.
- **Head:** Formed around early 2023.
- **Right Shoulder:** Currently forming around mid-2023 to 2024.
- This is a typical reversal pattern indicating a potential change in the trend from bearish to bullish.
2. **Ascending Channel:**
- The price is moving within an ascending channel, suggesting a gradual increase in price.
- The upper and lower boundaries of the channel are acting as resistance and support levels, respectively.
3. **Cup and Handle Pattern:**
- A large cup and handle pattern appears to be forming over several years, with the bottom of the cup around 2020 and the handle forming currently.
- This is another bullish pattern that can indicate a continuation of the uptrend once the pattern is completed.
### Volume Analysis
- **Increasing Volume:** The recent candles show increasing volume, especially around the right shoulder formation, which is a positive sign. This suggests strong buying interest and supports the bullish patterns identified.
### Summary
- **Bullish Indicators:**
- The head and shoulders bottom pattern, cup and handle pattern, and ascending channel all suggest a bullish outlook for Global Offshore Services Ltd.
- Increasing volume and a rising RSI further support the bullish case.
- **Key Levels to Watch:**
- **Resistance:** The upper boundary of the ascending channel and the neckline of the head and shoulders pattern.
- **Support:** The lower boundary of the ascending channel and the recent low of the right shoulder.
- **Actionable Insight:**
- If the price breaks above the neckline of the head and shoulders pattern with strong volume, it could be a signal to buy.
- Conversely, if the price falls below the support levels with increasing volume, it might indicate a potential bearish reversal.
Fundamentals from Screener.in
Global Offshore Services Ltd. has had a turbulent financial history, with several key metrics providing insights into its performance over the past decade.
### Financial Performance and Ratios
1. **Revenue and Profit Growth**:
- The company has experienced negative compounded sales growth over the past 10 years, with a significant decline observed in the last 5 years and 3 years as well
- However, there has been a notable improvement in profit growth, particularly in the recent term, with a 70% increase in TTM (Trailing Twelve Months) profit growth
2. **Earnings and Net Profit**:
- Despite past losses, Global Offshore Services reported a turnaround with a net profit of ₹38 crores in the most recent fiscal year, a significant recovery from previous years of losses.
- The company's EPS (Earnings Per Share) also improved, although it still reflects the volatility experienced in past years.
3. **Debt and Liabilities**:
- The company has significantly reduced its borrowings from ₹1,155 crores in 2019 to ₹37 crores in 2024, which indicates a strategic focus on debt reduction.
- Total liabilities have also decreased, showing a more manageable financial structure.
4. **Cash Flows**:
- Operating cash flow remains positive, indicating that the company's core operations are generating cash, albeit at lower levels compared to earlier years.
- Cash from financing activities reflects the company's efforts to repay debt, resulting in negative cash flow from financing.
### Market Performance
- The current share price of Global Offshore Services Ltd. is ₹65.21, with a PE ratio of 4.35.
- The stock has shown significant gains over the past year, with a 1-year return of 60.86%.
- The market capitalization of the company stands at ₹156.02 crores.
### Conclusion
Global Offshore Services Ltd. appears to be in a recovery phase, with improved profitability and a stronger balance sheet due to reduced debt. The market has responded positively to these improvements, as reflected in the significant stock price gains. However, investors should remain cautious due to the historical volatility and ongoing challenges in revenue growth.
