GMMPFAUDLR trade ideas
GMMPFAUDLR stock which one is best for next 5 year investmentCompany info :
GMM Pfaudler's principal activity is the manufacture of corrosion resistant glasslined equipment used primarily in the chemical, pharmaceutical and allied industries. The Company also manufactures flouro-polymer products and other chemical process equipment such as agitated nutsche filters, filter dryers, wiped film evaporators and mixing systems.
Market Cap: 1,795 Cr.
Current Price: 1,228
52 weeks High / Low 1247.00 / 636.10
Book Value: 155.81
Stock P/E: 42.45
Dividend Yield: 0.33 %
ROCE: 29.00 %
ROE: 20.06 %
Sales Growth (3Yrs): 9.66 %
Face Value: 2.00
Pros:
Company is virtually debt free.
Company has good consistent profit growth of 38.90% over 5 years
Company has been maintaining a healthy dividend payout of 18.07%
Cons:
Stock is trading at 7.88 times its book value
Ascending triangle consolidationGMM Pfaudler is undergoing a six month long ascending triangle consolidation and is ripe for a breakout in coming months. Breakout above 600 may open up unlimited possibilities. Accumulate with S/L of 530.
GMM Pfaulder@cmp, i will trade in small chunks until it brks 625Rs.
CMP: 560
Target/Resistance: 580/625
Stoploss: 544
Rationale: Forming Asc.triangle. Tested upto 625Rs in apr & May 2017.
Note: If closes above 625, Doors open for big targets. I will add more position, if brkout @625 sustained.
