Stock is worth watching as it is forming a 8-week, 16% deep Consolidation Base. The current price is only 3% away from its ideal buy price of INR 197. Aggressive investors could use any tight area breakout inside the base as an opportunity to initiate a small position. A conservative approach may be to add the stock to your watchlist so that you are ready to pounce if it breaks out to the traditional entry point.
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 11.52% away from the 10-week moving average.
In the last twelve months, Bhansali Engg.Po has rallied nearly 331.9% as compared to 44.3% for the Nifty500. It has a Relative Strength Rating of 76. We definitely would like to see improvement in the rating. At this point we are taking a step back and focusing on the RS Line.
The RS Line remains in a downtrend for the last four weeks. However, this is not unusual for a leading stock as the stock sets up base for its next leg up or at the very beginning of a new trend. At this point, the overall long term trend of the line is upward. If Bhansali Engg.Po can maintain a healthy upward move, it could make sense as a CANSLIM trade.
Another key part of the jigsaw is institutional sponsorship. Bhansali Engg.Po 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, Bhansali Engg.Po has an excellent EPS Rank of 97, which indicates consistency in earnings. The earnings and sales for the stock have grown by 60% and 1%, respectively over the past three years. Its 3-years earnings stability is 71, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 45% and 16%, respectively. The 5-years earnings stability is 66. The return on equity for the last reported year is 64%.
The stock belongs to the industry group of Chemicals-Specialty, which is exhibiting a fair amount of strength in the current market environment. The current industry group rank is 34. The current price of Bhansali Engg.Po is -0% off from its 52-week high price and 461% above its 52-week low price.
The stock appears on our idea lists: Minervini Trend Template.