Polycab India stock is forming a 8-week, 13% deep Flat Base. The current price is only 1% away from its ideal buy price of INR 2033. This is a bullish sign, but the current price of the stock is still below the 10-week moving average. A prudent approach would be to add the stock to your watchlist. This means you can be ready to pounce as the stock moves above the 10-wma line and breaks out to the ideal 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 7.0% away from the 10-week moving average.
In the last twelve months, Polycab India has rallied nearly 110.4% as compared to 43.9% for the Nifty500. It has a Relative Strength Rating of 72. We definitely would like to 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 Polycab India can maintain this outperformance, it could make sense as a CANSLIM trade.
Polycab India stock has strong institutional support. The Accumulation/Distribution Rating of 'B+' 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, Polycab India has an excellent EPS Rank of 83, which indicates consistency in earnings. The earnings and sales for the stock have grown by 29% and 7%, respectively over the past three years. Its 3-years earnings stability is 5, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 36% and 12%, respectively. The 5-years earnings stability is 7. The return on equity for the last reported year is 21%.
The stock belongs to the industry group of Electrical-Power/Equipmt. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 56. The current price of Polycab India is -4% off from its 52-week high price and 156% above its 52-week low price.
The stock appears on our idea lists: Minervini Trend Template.