Indo Count Inds: Breaks out from a Cup with Handle Pattern

Posted Date: June 17 2021

Indo Count Inds. the stock has cleared a 26-week, 34% deep Cup With Handle Base this week. Currently, the stock is trading around just 7% away from its ideal buy price of INR 161. The stock is worth watching at the current price level.

 

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 16.62% away from the 10-week moving average.

 

Indo Count Inds. has been an outperforming stock as compared to the broader market. It has a strong Relative Strength Rating of 83. In the last twelve months, the stock has rallied over 319% as compared to 56.3% for the Nifty500.

 

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 Indo Count Inds. can maintain this outperformance, it could make sense as a CANSLIM trade.

 

Another key part of the jigsaw is institutional sponsorship. Indo Count Inds. 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, Indo Count Inds. has an excellent EPS Rank of 88, which indicates consistency in earnings. The earnings and sales for the stock have grown by 19% and 13%, respectively over the past three years. Its 3-years earnings stability is 48, on a 0 to 99 scale (lower the better). Over the past five years, the sales for the stock have grown by 4%; however, the earnings growth remained muted at -3%. The 5-years earnings stability is 61. The return on equity for the last reported year is 22%.

 

The stock belongs to the industry group of Apparel-Clothing Mfg, which is exhibiting a fair amount of strength in the current market environment. The current industry group rank is 59. The current price of Indo Count Inds. is -4% off from its 52-week high price and 378% above its 52-week low price.

 

The stock appears on our idealists: Growth 50, Minervini Trend Template

 

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