Ghcl stock has broken out of a 9-week, 17% deep Cup Without Handle Base 2-weeks ago. However, the stock is still offering investors an opportunity to get on board as the current price is only 0% away from the ideal buy price of INR 258.
The stock closed in green for the week, but the volume remained below average. It was up 4% on a -3% 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 8.28% away from the 10-week moving average.
In the last twelve months, Ghcl has rallied nearly 157.3% as compared to 68.4% for the Nifty500. It has a Relative Strength Rating of 72. We definitely would like 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 Ghcl can maintain this outperformance, it could make sense as a CANSLIM trade.
Another key part of the jigsaw is institutional sponsorship. Ghcl 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, Ghcl has a respectable EPS Rank of 79, which is okay but needs improvement. The earnings and sales for the stock have seen de-growth of -2% and --2%, respectively over the past three years. Its 3-years earnings stability is 14, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 2% and 4%, respectively. The 5-years earnings stability is 14. The return on equity for the last reported year is 14%.
The current price of Ghcl is -6% off from its 52-week high price and 164% above it 52-week low price. The stock belongs to industry group of Chemicals-Specialty, which is exhibiting excellent strength in the current market environment. The current industry group rank is 31.