Carborundum Universal stock has cleared a 10-week, 23% deep Consolidation Base this week. Currently, the stock is trading around just 7% away from its ideal buy price of INR 572. 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 16.48% away from the 10-week moving average.
Carborundum Universal has been an outperforming stock as compared to the broader market. It has a strong Relative Strength Rating of 81. In the last twelve months, the stock has rallied over 169.2% as compared to 61.1% 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 Carborundum Universal can maintain this outperformance, it could make sense as a CANSLIM trade.
Another key part of the jigsaw is institutional sponsorship. Carborundum Universa lhas 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, Carborundum Universal has an excellent EPS Rank of 84, which indicates consistency in earnings. Over the past three years, the earnings and sales for the stock have grown by 14% and 6%, respectively. The 5-years earnings stability is 7. The return on equity for the last reported year is 14%.
The current price of Carborundum Universal is -1% off from its 52-week high price and 202% above it 52-week low price. The stock belongs to industry group of Machinery-Gen Industrial, which is exhibiting excellent strength in the current market environment. The current industry group rank is 38.
The stock appears on our idea lists: Trend Template - 5 Months.Related article: