Is Dalmia Bharat Still A Good Buy ?

May 20 2021

Dalmia Bharat stock has cleared a 7-week, 17% deep Consolidation Base this week. Currently, the stock is trading around just 7% away from its ideal buy price of INR 1690. The stock is offering investors an opportunity to get on board at the current price.

 

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 13.26% away from the 10-week moving average.

 

Dalmia Bharat has been an outperforming stock as compared to the broader market. It has a strong Relative Strength Rating of 85. In the last twelve months, the stock has rallied over 245.2% 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 Dalmia Bharat can maintain this outperformance, it could make sense as a CANSLIM trade.

 

Another key part of the jigsaw is institutional sponsorship. Dalmia Bharat has an Accumulation/Distribution Rating of 'A+'. This represents heavy institutional buying over the past few weeks. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.

 

On the earnings front, Dalmia Bharat has an excellent EPS Rank of 99, which indicates consistency in earnings. The earnings and sales for the stock have grown by 7% and 4%, respectively over the past three years. Its 3-years earnings stability is 50, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 42% and 9%, respectively. The 5-years earnings stability is 93. The return on equity for the last reported year is 11%.

 

The stock belongs to industry group of Bldg-Cement/Concrt/Ag. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 62. The current price of Dalmia Bharat is -3% off from its 52-week high price and 279% above it 52-week low price.

 

The stock appears on our idea lists: Trend Template - 5 Months.

 
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