Emami stock has broken out of a 6-week, 13% deep Cup Without Handle Base 4-weeks ago. However, the stock is still offering investors an opportunity to get on board as the current price is only 2% away from the ideal buy price of INR 547.
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 7.6% away from the 10-week moving average.
In the last twelve months, Emami has rallied nearly 143.7% as compared to 49.5% for the Nifty500. It has a Relative Strength Rating of 58. We definitely would like 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 Emami can maintain this outperformance, it could make sense as a CANSLIM trade.
Emami 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, Emami has an excellent EPS Rank of 87, which indicates consistency in earnings. 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 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 1% and 3%, respectively. The 5-years earnings stability is 15. The return on equity for the last reported year is 25%.
The stock belongs to the industry group of Cosmetics/Personal Care. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 140. The current price of Emami is -2% off from its 52-week high price and 161% above its 52-week low price.
The stock appears on our idea lists: Minervini Trend Template