MarketsmithIndia Articles

Esab India And Kennametal India, The Two Stocks From The Industry Group Machinery-Gen, Actionable ?

September 15 2021 | Reading Time: 5 Minutes

Esab India stock has broken out of a 26-week, 18% deep Consolidation Base 3-weeks ago. However, the stock is still offering investors an opportunity to get on board as the current price is only 6% away from the ideal buy price of INR 2150.

 

The stock closed in green for the week, but the volume remained below average. It was up 3.24% on a 48% lower   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 to 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 12.0% away from the 10-week moving average.

 

In the last twelve months, Esab India has rallied nearly 59.7% as compared to 52.6% for the Nifty500. It has a Relative Strength Rating of 50. 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 Esab India can maintain this outperformance, it could make sense as a CANSLIM trade.

 

Esab India stock has strong institutional support. The Accumulation/Distribution Rating of 'A-' represents heavy institutional buying over the past 13 weeks. Although the shares held by institutions dropped in the last quarter, the number of institutions holding the stock increased at the same time. This shows increasing interest among the institutions.

 

On the earnings front, Esab India has an excellent EPS Rank of 92, which indicates consistency in earnings. The earnings and sales for the stock have grown by 11% and 4%, respectively over the past three years. Its 3-years earnings stability is 11, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 24% and 10%, respectively. The 5-years earnings stability is 14. The return on equity for the last reported year is  20%.

 

The stock belongs to the industry group of Machinery-Gen Industrial. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 87. The current price of Esab India is -3% off from its 52-week high price and 76% above its 52-week low price.

 

The stock appears on our idea lists:  Minervini Trend Template.

Kennametal India Stock

 

Kennametal India stock has broken out of a 11-week, 20% deep Consolidation Base 3-weeks ago. However, the stock is still offering investors an opportunity to get on board as the current price is only 1.0% away from the ideal buy price of INR 1440.

 

The stock closed in green for the week, but the volume remained below average. It was up 1.1% on a -65% lower 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 to 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 9.53% away from the 10-week moving average.

 

In the last twelve months, Kennametal India has rallied nearly 99.6% as compared to 52.6% for the Nifty500. It has a Relative Strength Rating of 61. 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 Kennametal India can maintain this outperformance, it could make sense as a CANSLIM trade.

 

On the earnings front, Kennametal India has an excellent EPS Rank of 89, which indicates consistency in earnings. The earnings and sales for the stock have seen de-growth of -21% and --6%, respectively over the past three years. Its 3-years earnings stability is 43, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 19% and 6%, respectively. The 5-years earnings stability is 56. The return on equity for the last reported year is 13%.

 

The stock belongs to the industry group of Machinery-Gen Industrial. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 87. The current price of Kennametal India is -3% off from its 52-week high price and 108% above its 52-week low price.

 

The stock appears on our idea lists:  Minervini Trend Template.

What do you think? Please email us any questions or comments.

Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.For more information, see our Legal disclosures here.

Related Article

Loading...