Crompton Greaves Con stock is worth watching as the stock is forming a 6-week, 13% deep Flat Base. The current price is only 2% away from its ideal buy price of INR 499. 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 4.80% away from the 10-week moving average.
In the last twelve months, Crompton Greaves Con has rallied nearly 90.7% as compared to 52.5% for the Nifty500. It has a Relative Strength Rating of 56. 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 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 Crompton Greaves Con can maintain this outperformance, it could make sense as a CANSLIM trade.
Crompton Greaves Con stock has strong institutional support. The Accumulation/Distribution Rating of 'B' represents heavy institutional buying over the past 13 weeks. Although the number of institutions holding the stock dropped in the last quarter, the number of shares held by the institutions increased at the same time.
On the earnings front, Crompton Greaves Con has an excellent EPS Rank of 93, which indicates consistency in earnings. The earnings and sales for the stock have grown by 20% and 2%, respectively over the past three years. Its 3-years earnings stability is 8, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 20% and 7%, respectively. The 5-years earnings stability is 7. The return on equity for the last reported year is 36%.
The stock belongs to the industry group of Household-Appliances/Wares. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 135. The current price of Crompton Greaves Con is 2.0% off from its 52-week high price and 96% above its 52-week low price.
The stock appears on our idea lists: Minervini Trend Template