Jk Paper Ltd. stock has cleared a 13-week, 25% deep Cup With Handle Base this week. Currently, the stock is trading around just 6% away from its ideal buy price of INR 167. 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 17.52% away from the 10-week moving average.
In the last twelve months, Jk Paper Ltd. has rallied nearly 75.1% 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 Jk Paper Ltd. can maintain this outperformance, it could make sense as a CANSLIM trade.
Another key part of the jigsaw is institutional sponsorship. Jk Paper Ltd. has an Accumulation/Distribution Rating of 'A'. 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, Jk Paper Ltd. has an EPS Rank of 55, which is okay but fails to impress a growth stock investor. The earnings for the stock have grown by 2% over the past three years; however, the sales growth remained muted at -2%. Its 3-years earnings stability is 32, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 38% and 4%, respectively. The 5-years earnings stability is 49. The return on equity for the last reported year is 22%.
The stock belongs to the industry group of Paper & Paper Products. You would still want to see some improvement in the industry group rank group. The current industry group rank is 102. The current price of Jk Paper Ltd. is -2% off from its 52-week high price and 105% above its 52-week low price.
The stock appears on our idealists: Minervini Trend Template .