Marathon Coming To An End ?, Nmdc Ltd ?

Nmdc Ltd. has had a huge run in the last one year. It is up more than 69.6% from a year ago as compared to 53.4% for the Nifty500.

 

The stock definitely has strong institutional support. It has seen huge institutional accumulation in the most recent quarters. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.

 

On the earnings front, Nmdc Ltd. has an excellent EPS Rank of 99, which indicates consistency in earnings. The earnings and sales for the stock have grown by 13% and 19%, respectively over the past three years. 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 19% and 11%, respectively. The 5-years earnings stability is 26. The return on equity for the last reported year is 21%.

 

Nmdc Ltd. stock fell -6.0% this week, undercutting its 40-week moving average. It closed -6.0% below the 40-week moving average. However, the volume for the week remained below its 10-week average.

 

The large-cap stocks often take support near its 40-week moving average and set up a new base around the line for future move. But such base building may take months, even years. If it is a long term leader, we definitely can give it more room and time to stage a recovery. But, that’s not the case here. Nmdc Ltd. does not meet our long term leader’s trend criteria yet. At this point, we would consider this week’s close as a weakness in the stock.