Is It A Good Time To Buy KNR Constructions ?

Knr Constructions stock is worth watching as the stock is forming an 18-week, 22% deep Cup With Handle Base. The current price is only 6% away from its ideal buy price of INR 239. 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 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 6.1% away from the 10-week moving average.

 

In the last twelve months, Knr Constructions has rallied nearly 101.8% as compared to 55.7% for the Nifty500. It has a Relative Strength Rating of 58. We definitely would like to see an 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 Knr Constructions can maintain this outperformance, it could make sense as a CANSLIM trade.

 

Another key part of the jigsaw is institutional sponsorship. KNR Constructions has an Accumulation/Distribution Rating of 'B'. 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, Knr Constructions has an excellent EPS Rank of 94, which indicates consistency in earnings. The earnings and sales for the stock have grown by 18% and 11%, respectively over the past three years. Its 3-years earnings stability is 10, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 51% and 16%, respectively. The 5-years earnings stability is 43. The return on equity for the last reported year is 23%.

 

The stock belongs to the industry group of Bldg-Heavy Construction. You would still want to see some improvement in the industry group rank group. The current industry group rank is 88. The current price of Knr Constructions is -7% off from its 52-week high price and 123% above its 52-week low price.

 

The stock appears on our idealists: Minervini Trend Template.

 
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