Berger Paints stock has cleared a 18-week, 18% deep Consolidation Base this week. Currently, the stock is trading around just -2% away from its ideal buy price of INR 823. The stock is offering investors an opportunity to get on board at the current price.
The stock ended the week on a bullish note. It closed 1.45% up on a 159% greater volume than the 10-week average. You want to see a strong close on heavy volume like this before initiating a position. That signals institutional buying. You would also want to see the same price volume momentum to continue in the coming weeks.
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 7.26% away from the 10-week moving average.
In the last twelve months, Berger Paints I has rallied nearly 62.3% as compared to 60.8% for the Nifty500. It has a Relative Strength Rating of51. 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 Berger Paints I can maintain this outperformance, it could make sense as a CANSLIM trade.
Berger Paints I stock has strong institutional support. The Accumulation/Distribution Rating of 'A-' represents heavy institutional buying over the past few 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, Berger Paints I has an excellent EPS Rank of 94, which indicates consistency in earnings. The earnings and sales for the stock have grown by 12% and 5%, respectively over the past three years. Its 3-years earnings stability is 5, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 14% and 10%, respectively. The 5-years earnings stability is 14. The return on equity for the last reported year is 24%.
The stock belongs to the industry group of Chemicals-Paints. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 68. The current price of Berger Paints is -4% off from its 52-week high price and 77% above its 52-week low price.
The stock appears on our idea lists: Trend Template - 5 Months