Bajaj Finserv Ltd stock has broken out of a 10-week, 15% deep Consolidation Base 2-weeks ago. However, the stock is still worth watching as the current price is only 6% away from the ideal buy price of INR 10579.
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 9.6% away from the 10-week moving average.
In the last twelve months, Bajaj Finserv Ltd. has rallied nearly 132.3% as compared to 61.1% for the Nifty500. It has a Relative Strength Rating of 70. We definitely would like see 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 Bajaj Finserv Ltd. can maintain this outperformance, it could make sense as a CANSLIM trade.
Another key part of the jigsaw is institutional sponsorship. Bajaj Finserv Ltd. has an Accumulation/Distribution Rating of 'B+'. This represents heavy institutional buying over the past few weeks. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.
On the earnings front, Bajaj Finserv Ltd. has an excellent EPS Rank of 97, which indicates consistency in earnings. The earnings and sales for the stock have grown by 14% and 24%, respectively over the past three years. Its 3-years earnings stability is 7, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 17% and 36%, respectively. The 5-years earnings stability is 6. The return on equity for the last reported year is 13%.
The stock belongs to the industry group of Insurance-Brokers, which is exhibiting a fair amount of strength in the current market environment. The current industry group rank is 60. The current price of Bajaj Finserv Ltd. is -3% off from its 52-week high price and 175% above its 52-week low price.
The stock appears on our idea lists: Trend Template - 5 Months.