Aavas Financiers stock has cleared a 13-week, 21% deep Cup With Handle Base this week. Currently, the stock is trading around just 3% away from its ideal buy price of INR 2624. The stock is offering investors an opportunity to get on board at the current price.
The stock closed in the green for the week, but the volume remained above average. It was up 4.9% on a 102% higher volume than the 10-week average. It will be interesting to see how the stock behaves in the coming week. You would want to see the price volume momentum pick up in the coming trading sessions.
The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and The 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around 12.17% away from the 10-week moving average.
In the last twelve months, Aavas Financiers has rallied nearly 96.9% as compared to 50.3% for the Nifty500. It has a Relative Strength Rating of 59. We definitely would like to see an improvement in the rating. At this point, we are taking a step back and focusing on the RS Line.
The Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the last four weeks. The overall long-term trend of the line is also trending upward. If Aavas Financiers can maintain this outperformance, it could make sense as a CANSLIM trade.
Another key part of the jigsaw is institutional sponsorship. Aavas Financiers has an Accumulation/Distribution Rating of 'B+'. This represents heavy institutional buying over the past 13 weeks. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.
On the earnings front, Aavas Financiers has an excellent EPS A rank of 96, which indicates consistency in earnings. The earnings and sales for the stock has grown by 34% and 38%, respectively over the past three years. Its 3-years earnings stability is 9, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 52% and 40%, respectively. The 5-years earnings stability is 15. The return on equity for the last reported year is 13%.
The stock belongs to the industry group of Finance-Consumer Loans. You would still want to see some improvement in the industry group rank for group. The current industry group rank is 97. The current price of Aavas Financiers is 0% off from its 52-week high price and 114% above its 52-week low price.
The stock appears on our idealists: Minervini Trend Template