Adani Enterprises Ltd stock is worth watching as the stock is forming a 12-week, 30% deep Consolidation Base. The current price is only 9.0% away from its ideal buy price of INR 1717. 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 current trend of the 10-week moving average is trading flat . However, if we look at a bigger picture, the long term average (40-week moving average) is in an uptrend. The 10-week moving average is above the trending 40-week moving average. The stock is trading around 7.0% away from the 10-week moving average.
Adani Enterprises Lt has been a roaring outperformer as compared to the broader market. It has a top-notch Relative Strength Rating of 92. In the last twelve months, the stock has soared over 422.5% as compared to 43.9% 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 Adani Enterprises can maintain this outperformance, it could make sense as a CANSLIM trade.
Another key part of the jigsaw is institutional sponsorship. Adani Enterprises Lt has an Accumulation/Distribution Rating of 'B'. 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, Adani Enterprises Lt has an excellent EPS Rank of 92, which indicates consistency in earnings. The earnings and sales for the stock have grown by 7% and 3%, respectively over the past three years. Its 3-years earnings stability is 25, on a 0 to 99 scale (lower the better). The return on equity for the last reported year is 5%.
The stock belongs to the industry group of Elec-Misc Products. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 70. The current price of Adani Enterprises Lt is -9.0% off from its 52-week high price and 505% above its 52-week low price.