Pidilite Inds. stock has cleared a 5-week, 7% deep Flat Base this week. Currently, the stock is trading around just 1% away from its ideal buy price of INR 2334. The stock is offering investors an opportunity to get on board at the current price.
The stock ended the week on a bullish note. It closed 6% up on a 114% greater volume than the 10-week average. You want to see a strong close on heavy volume like this before initiating a position. That signals institutional buying. You would also want to see the same price volume momentum to continue in the coming weeks.
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 4.6% away from the 10-week moving average.
In the last twelve months, Pidilite Inds. has rallied nearly 61.1% as compared to 51.6% for the Nifty500. It has a Relative Strength Rating of 52. 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 Pidilite Inds. can maintain this outperformance, it could make sense as a CANSLIM trade.
On the earnings front, Pidilite Inds. has an excellent EPS Rank of 93, which indicates consistency in earnings. The earnings and sales for the stock have grown by 6% and 3%, respectively over the past three years. Its 3-years earnings stability is 12, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 6% and 7%, respectively. The 5-years earnings stability is 10. The return on equity for the last reported year is 23%.
The current price of Pidilite Inds. is 0% off from its 52-week high price and 69% 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 38.
The stock appears on our idea lists: Minervini Trend Template.