Is This A Good Time To Buy Atul Ltd
September 07 2021 | Reading Time: 2 minutes
Atul Ltd. stock is worth watching as the stock is forming a 9-week, 9% deep Flat Base. The current price is only 4% away from its ideal buy price of INR 9660. 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 1.65% away from the 10-week moving average.
In the last twelve months, Atul Ltd. has rallied nearly 50.9% as compared to 51.6% for the Nifty500. It has a Relative Strength Rating of 50. 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 RS Line remains in a downtrend for the last four weeks. However, this is not unusual for a leading stock as the stock sets up base for its next leg up or at the very beginning of a new trend. At this point, the overall long term trend of the line is upward. If Atul Ltd. can maintain a healthy upward move, it could make sense as a CANSLIM trade.
Another key part of the jigsaw is institutional sponsorship. Atul Ltd. 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, Atul Ltd. has an excellent EPS Rank of 90, which indicates consistency in earnings. The earnings and sales for the stock have grown by 30% and 2%, respectively over the past three years. Its 3-years earnings stability is 13, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 24% and 9%, respectively. The 5-years earnings stability is 15. The return on equity for the last reported year is 19%.
The current price of Atul Ltd. is -4% off from its 52-week high price and 62% above its 52-week low price. The stock belongs to the industry group of Chemicals-Specialty, which is exhibiting excellent strength in the current market environment. The current industry group rank is 41.
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 1.65% away from the 10-week moving average.
In the last twelve months, Atul Ltd. has rallied nearly 50.9% as compared to 51.6% for the Nifty500. It has a Relative Strength Rating of 50. 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 RS Line remains in a downtrend for the last four weeks. However, this is not unusual for a leading stock as the stock sets up base for its next leg up or at the very beginning of a new trend. At this point, the overall long term trend of the line is upward. If Atul Ltd. can maintain a healthy upward move, it could make sense as a CANSLIM trade.
Another key part of the jigsaw is institutional sponsorship. Atul Ltd. 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, Atul Ltd. has an excellent EPS Rank of 90, which indicates consistency in earnings. The earnings and sales for the stock have grown by 30% and 2%, respectively over the past three years. Its 3-years earnings stability is 13, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 24% and 9%, respectively. The 5-years earnings stability is 15. The return on equity for the last reported year is 19%.
The current price of Atul Ltd. is -4% off from its 52-week high price and 62% above its 52-week low price. The stock belongs to the industry group of Chemicals-Specialty, which is exhibiting excellent strength in the current market environment. The current industry group rank is 41.
The stock appears on our idea lists: Minervini Trend Template.
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