Is This a Good Time To Buy Dollar Industries?

Dollar Industries stock has cleared a 12-week, 30% deep Ascending Base this week. Currently, the stock is trading around just 1% away from its ideal buy price of INR 463. 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 12% away from the 10-week moving average.

In the last twelve months, Dollar Industries has rallied nearly 193.1% as compared to 43.1% for the Nifty500. It has a Relative Strength Rating of 78. 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 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 Dollar Industries can maintain this outperformance, it could make sense as a CANSLIM trade.

Dollar Industries stock has strong institutional support. The Accumulation/Distribution Rating of 'A+' represents heavy institutional buying over the past 13 weeks. Although the shares held by institutions dropped in the last quarter, the number of institutions holding the stock increased at the same time. This shows increasing interest among the institutions.

On the earnings front, Dollar Industries has an EPS Rank of 57, which is okay but fails to impress a growth stock investor. The earnings and sales for the stock have grown by 6% and 1%, 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 sales for the stock have grown by 3%; however the earnings growth remained muted at -8%. The 5-years earnings stability is 19. The return on equity for the last reported year is 17%.

The current price of Dollar Industries is -2% off from its 52-week high price and 245% above its 52-week low price. The stock belongs to the industry group of Apparel-Clothing Mfg, which is exhibiting excellent strength in the current market environment. The current industry group rank is 39.

The stock appears on our idea lists:  Minervini Trend Template.