stock has broken out of a 5-week, 9% deep Flat Base
4-weeks ago. However, the stock is still worth watching as the current price is only 1% away from the ideal buy price of INR 321.
The stock closed in red for the week, but on a lower volume. It was down -5% on a -45% lower volume than the 10-week average. You want to see a strong close on heavy volume before initiating a position. That signals institutional buying. But do not conclude anything just based on this week’s action. A prudent approach would be to watch the price volume momentum 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 3.52% away from the 10-week moving average.
In the last twelve months, Chambal Fertilis has rallied nearly 108.8% as compared to 41.8% for the Nifty500. It has a Relative Strength Rating
of 61. 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 Chambal Fertilis Stock can maintain this outperformance, it could make sense as a CANSLIM
Another key part of the jigsaw is institutional sponsorship. Chambal Fertilis has an Accumulation/Distribution Rating
of 'A'. 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, Chambal Fertilis
has an excellent EPS Rank of 97, which indicates consistency in earnings. The earnings and sales for the stock have grown by 59% and 68%, respectively over the past three years. Its 3-years earnings stability is 12, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 47% and 29%, respectively. The 5-years earnings stability is 12. The return on equity for the last reported year is 38%.
The stock belongs to the industry group of Chemicals-Agricultural. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 86. The current price of Chambal Fertilisers -7% off from its 52-week high price and 144% above its 52-week low price.
The stock appears on our idea lists: Minervini Trend Template.
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