Is Aarti Ind Actionable Now?

Aarti Ind. Ltd stock has cleared a 6-week, 10% deep Cup Without Handle Base this week. Currently, the stock is trading around just 2% away from its ideal buy price of INR 932. The stock is offering investors an opportunity to get on board at the current price.

 

The stock closed in green for the week, but the volume remained below average. It was up 4.9% on a -12% 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 7% away from the 10-week moving average.

 

In the last twelve months, Aarti Ind. Ltd has rallied nearly 88.8% as compared to 44.4% 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 Aarti Ind. Ltd can maintain this outperformance, it could make sense as a CANSLIM trade.

 

Another key part of the jigsaw is institutional sponsorship. Aarti Ind. Ltd 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, Aarti Ind. Ltd has an excellent EPS Rank of 88, which indicates consistency in earnings. The earnings and sales for the stock have grown by 14% and 6%, respectively over the past three years. Its 3-years earnings stability is 18, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 18% and 10%, respectively. The 5-years earnings stability is 15. The return on equity for the last reported year is 16%.

 

The current price of Aarti Ind. Ltd is 2% off from its 52-week high price and 96% above its 52-week low price. The stock belongs to the industry group of Chemicals-Specialty, which is exhibiting excellent strength in the current market environment. The current industry group rank is 35.

 

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