Strong Breakout With High Momentum- Don’t Miss ✅ The stock has broken out of a long-term ascending wedge pattern which had been forming since 2020. The breakout above the 650 level signals a potential continuation of the bullish trend. The breakout has occurred on strong volume, reinforcing the likelihood of further upward movement.
✅The RSI stands at 7 which indicates strong momentum behind the recent breakout. While approaching the overbought region, it still suggests that the stock has room to move higher before any potential pullback. The increasing RSI trend also reflects growing buying interest. And the breakout is supported by a significant volume increase, showing growing investor confidence in the stock's upward trajectory.
✅Vimta Labs is a leading life sciences company in India, offering a wide range of testing and research services including clinical research environmental testing and food testing. The company has a strong reputation for its focus on quality and safety serving clients across multiple sectors like healthcare pharmaceuticals, food, and agriculture. Many of its peers from each industry have delivered good returns in recent Company's technical breakout in chart signals that it is ready to join the ranks of its outperforming peers particularly as its fundamentals align with sector growth trends.
Trade ideas
BUY TODAY SELL TOMORROW for 5%DON’T HAVE TIME TO MANAGE YOUR TRADES?
- Take BTST trades at 3:25 pm every day
- Try to exit by taking 4-7% profit of each trade
- SL can also be maintained as closing below the low of the breakout candle
Now, why do I prefer BTST over swing trades? The primary reason is that I have observed that 90% of the stocks give most of the movement in just 1-2 days and the rest of the time they either consolidate or fall
Trendline Breakout in VIMTALABS
BUY TODAY SELL TOMORROW for 5%
Topline Growth + Op Leverage ComboChart is self explanatory.
Vimta Labs is one of the well known food testing companies in India.
As per Management guidance,
1. Company is targeting 500 Cr Revenue for 2026; and
2. Margin Expansion upwards of 30%
At expected Revenue of 500 Cr and EBIT margins of 32% by 2026 - EBIT will be around 160 Cr and Net Profit 80 Cr at current NPM of 15%
This equates to an EPS of 37 approximately.
Now here's the tricky part - Finding a reasonable PE for this company.
Ever since it got listed in 2020 at peak PE of 45, the parameter has been declining steadily and is ranging at 20 plus minus 5 now since mid 2021.
At PE of 20, this would mean share price of 20 x 37 EPS = 740 by 2026 which is 25% CAGR approx.
This is a very rough calculation, and things can go wrong, like they did when the company postponed the revenue target from 2025 to 2026.
The price has formed bearish patterns at resistance levels, and it remains to be seen if it can give a breakout in the upside after a small traceback.
Either way, it makes sense to study the business which has been able to 7x its EPS in 3 years, at 25% ROCE.
Note : This is not an investment advice. This post is meant for educational purpose only. Kindly do your own due diligence before investing
Vimta Labs - Flag pattern bullish breakoutVimta Labs Analysis
Fundamentals : Strong, Consistently increase in Sales, Profits and Reserves, DIIs, FIIs holding increasing.
Technicals : Given Flag Pattern breakout forming triple bottom, C&H pattern formation, riding 52 weeks high!
Target 1: 500
Target 2: 550
Target 3: 620
SL : 400
FOCUS VIMTALABVannakam Makkale, found some decent breakout from a consolidation range in VIMTALAB. Focus, as per your risk reward. First target will be around 597. As I always say whatever we do must follow risk reward and money management.
Thank you for following and share it with your friends and family 😊
@trade_withpriceaction ❤
Took this trade for 4% target in 1 day DON'T HAVE TIME TO MANAGE YOUR TRADES?
- Take BTST trades at 3:25 pm every day
- Try to exit by taking 4-7% profit of each trade
- SL can also be maintained as closing below the low of the breakout candle
The levels mentioned on the chart are calculated using the BREAKOUT INDICATOR
Now, why do I prefer BTST over swing trades? The primary reason is that I have observed that 90% of the stocks give most of the movement in just 1-2 days and the rest of the time they either consolidate or fall
Took this trade for 4% target in 1 day
Trendline Breakout in VIMTALABS
BUY TODAY SELL TOMORROW for 4%