MarketSmith India Stories
Just Dial Stock
Just Dial stock is worth watching as the stock is forming a 13-week, 31% deep Double Bottom Base. The current price is only 0% away from its ideal buy price of INR 994. 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 12.29% away from the 10-week moving average.
In the last twelve months, Just Dial has rallied nearly 133.8% as compared to 55.6% for the Nifty500. It has a Relative Strength Rating of 75. 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 Just dial can maintain this outperformance, it could make sense as a CANSLIM trade.
Just Dial 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, Just Dial has an EPS Rank of 60, which is okay but fails to impress a growth stock investor. The earnings for the stock have grown by 26% over the past three years; however, the sales growth remained muted at -3%. Its 3-years earnings stability is 15, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 22% and 4%, respectively. The 5-years earnings stability is 15. The return on equity for the last reported year is 17%.
The stock belongs to the industry group Internet-Content. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 138. The current price of Just Dial is -6% off from its 52-week high price and 198% above its 52-week low price.
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