W Pattern Neckline & Falling Trendline Breakout seen in HavellsHello Everyone, i hope you all will be doing good in your trading and your life as well. Today i have brought a stock which has taken perfectly support at upward support trendline and formed a double bottom (W) pattern and also given a faliing resistance trendline breakout on daily timeframe price is still above to neckline and falling resistance trendline. Stock is giving good discounted entry price at these levels. Stock is down almost 17% from all time high., stock name is Havells India Limited and it is a leading Fast Moving Electrical Goods (FMEG) Company and a major power distribution equipment manufacturer with a strong global presence. It enjoys enviable market dominance across a wide spectrum of products, including Industrial & Domestic Circuit Protection Devices, Cables & Wires, Motors, Fans, Modular Switches, Home Appliances, Air Conditioners, Electric Water Heaters, Power Capacitors, Luminaires for Domestic, Commercial and Industrial Applicationsand.
Company is almost debt free.
Company has been maintaining a healthy dividend payout of 42.5%.
Company's working capital requirements have reduced from 16.7 days to 12.6 days.
Stock is good for short term to long term, Company is consistent profit maker every year it is posting exponantial growth on profits.
Market Share
The company has a market share of 10-15% for products like modular switches, SDA, Lighting, cables, and ACs and a 15-20% market share in the water heaters, MCBs, fans, and wires business.
Fundamental Analysis
P/E ratio is 76.3379 which is lower than it's Industry P/E 76.34
Interest Coverage ratio is 21.28
Stock has given a return of 30.9% in last 52 Weeks
ROCE is 25.46%
ROCE 25.46% has increased as compared to last year's ROCE 23.07%
ROE is 18.07%
ROE 25.46% has increased as compared to last year's ROE 23.07%
Operating Profit Margin (EBITDA Margin) is 10.12%
Operating Profit Margin (EBITDA Margin) 10.12% has improved as compared to last year's OPM 9.58%
Net Profit Margin (PAT Margin) 6.84% has improved as compared to last year's NPM 6.34%
Free Cash Flow yield is 1.32%
Free Cash Flow yield 1.32% has improved as compared to 5 Yrs avg FCF yield 1.19%
Cash Conversion Days 10.39 has improved as compared to 5 Yrs avg Cash Conversion Days 11.24
Annual Profit has grown over by 18.56%
3 Years Sales CAGR is 25.34%
3 Years Profit CAGR is 20.03%
Quarterly Sales has grown over by 16.38% YoY
DII have increased their stakes by 0.39% in the latest quarter (8.28% to 8.67%)
Promoters + FIIs + DIIs hold 92.84% in the company
Disclaimer:- Please always do your own analysis or consult with your financial advisor before taking any kind of trades.
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