#INDSWFTLABAsset: Ind-Swift Laboratories Ltd (INDSWFTLAB)
Breakout Level: 105 (Wait for retracement first)
Potential Target: 128 (1st target) / 170 (2nd target)
Stop Loss: 97
Timeframe: Short to Medium term
Risk to Reward ratio : 1:3 (conservative for first target)
Rationale:
Fundamentals -
Fundamentally decent stock with the following attributes:
* ROCE - 19.6%
* ROE - 17.4%
* Debt to Equity - 0.02
* Stock PE 7.96 / Industry PE - 33.8 || Stock PBV 0.63 / Industry PBV 3.39 - Company is underpriced
* EPS / Revenue - Increasing over last 6 months
* ADR is 7%
Technicals -
* Overall structure - Price is in the process of making a large rounding pattern and it has recently jumped above the 200 DMA. It will be better to track this stock and enter when the price has retraced and the 10 & 20 DMAs have caught up above the 200 DMA.
* Relative Strength and Momentum slope lines are positive.
* Multiple timeframe analysis - Monthly and Weekly structures are in the process of getting formed.
Market analysis
* The FIIs have suddenly started to show interest in this scrip and hence this has become a candidate for selection and tracking.
* The financials are pretty much ok
* Retail holding has gone down
* Promoters pledge has gone down to zero
* Pharma sector appears strong
* This could be slow accumulation stock although considering high ADR there can be some volatility
Cons
* ADR is low at 3.2% / some reduced holding by DIIs and MFs / Ceiling on left side
This analysis is for educational purposes only and should not be considered as financial advice. Trading and investing in financial markets involve significant risk, and past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any trading or investment decisions. The author is not responsible for any financial losses or damages that may result from the use of this information.
