Kirloskar Ferrous stock is worth watching as the stock is forming a 7-week, 15% deep Flat Base. The current price is only 4% away from its ideal buy price of INR 265. 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 watch list 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 13.06% away from the 10-week moving average.
Kirloskar Ferrous has been an outperforming stock as compared to the broader market. It has a strong Relative Strength Rating of 86. In the last twelve months, the stock has rallied over 245.3% as compared to 53.5% for the Nifty500.
The Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the last few weeks. The overall long-term trend of the line is also trending upward. If Kirloskar Ferrous can maintain this outperformance, it could make sense as a CANSLIM trade.
On the earnings front, Kirloskar Ferrous has an excellent EPS Rank of 97, which indicates consistency in earnings. The earnings for the stock have grown by 70% over the past three years; however the sales growth remained muted at -3%. Its 3-years earnings stability is 31, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 24% and 11%, respectively. The 5-years earnings stability is 44. The return on equity for the last reported year is 35%.
The current price of Kirloskar Ferrous is 0% off from its 52-week high price and 324% above its 52-week low price. The stock belongs to the industry group of Steel-Producers, which is exhibiting excellent strength in the current market environment. The current industry group rank is 20.
The stock appears on our idea lists: Growth 50, Minervini Trend Template.