STOVEKRAFT trade ideas
Will STOVEKRAFT make a new high? STOVEKRAFT has been in a nice uptrend and it had made a high of 1017 on 30.08.21. Since then it has pulled back to the 20 EMA and has formed a continuation bar today. It seems that it is poised to continue its upward trend and possibly make new highs. A long trade can be initiated keeping the following levels in mind. Only initiate the trade if price sustains above the "LONG ABOVE" level for 15 minutes.
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LONG ABOVE : 977.15
STOP LOSS : 915
TARGET 1 : 1039.30
TARGET 2 : 1101.45
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Manage risk properly and trade the plan. :)
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STOVE KRAFT Breakout and Retest tradeNSE:STOVEKRAFT Levels are Mentioned in the chart...
Note:
1. Views are personal. Recheck and take the trade as per your RR.
2. Always remember SL is your lifeline not the big target...
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STOVEKRAFTSwing TrAdE options:
After Box Break-Out now forming Descending Triangle Pattern, Depends on the break-Out stock moves further.
Current Price- 595
P/E- 23.8 (less among competitors)
Short time target: 650, 690
Med Time target: 730(Pole Extension)
Pros:
Company has reduced debt.
Company has delivered good profit growth of 30.97% CAGR over last 5 years
Debtor days have improved from 47.73 to 36.00 days.
Note:
Its revenue contribution was Kitchen Appliances (88%) and Home Appliances (12%) in FY20. The improved product mix resulted in profit expansion.
Happy Trading
Abd
StoveKraft ( Investment Idea) Huge digital presence more thna 60% of sales online will adapt to change well
Will have to look out for increasing revenue share from higher margin products and look for cost optimization.
Issues is it does not have a premium brand under the company's name.
Needs to diversify away more from only kitchen appliances and focus more on other appliances.
Pretty undervalued at the moment should look to buy on dips.
Buy at the previous trading range top then also buy at the trading range bottom if price goes there.
Always remember this is an IPO stock and IPOS have been know to destroy wealth for a while until the free cash flow really starts coming it won't get a PE revaluation.
(For it to trade at a multiple close to TTK prestige or Hawkins or Havells it needs to stabilize it's cash flows and margins while heavily increasing sales and reducing debt.
So do keep an eye out for that.
Track the quarterly reports also for good results and execution by the management.