Oriental Aromatics Forming A Consolidation Base

Oriental Aromatics stock is forming a 7-week, 25% deep Consolidation Base. This is a bullish sign, but it is still very deep in its base. The current price is still 9% away from its ideal buy price of INR 1019. A prudent approach would be to add the stock to your watchlist and perform a detailed analysis on it. This means you can be ready to pounce as the stock 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 6.0% away from the 10-week moving average.

 

In the last twelve months, Oriental Aromatics has rallied nearly 169.3% as compared to 51.6% for the Nifty500. It has a Relative Strength Rating of 67. 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 RS Line remains in a downtrend for the last four weeks. However, this is not unusual for a leading stock as the stock sets up base for its next leg up or at the very beginning of a new trend. At this point, the overall long term trend of the line is upward. If Oriental Aromatics can maintain a healthy upward move, it could make sense as a CANSLIM trade.

 

Oriental Aromatics 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, Oriental Aromatics has an excellent EPS Rank of 92, which indicates consistency in earnings. The earnings and sales for the stock have grown by 38% and 5%, respectively over the past three years. Its 3-years earnings stability is 6, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 34% and 17%, respectively. The 5-years earnings stability is 13. The return on equity for the last reported year is 20%.

 

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 78. The current price of Oriental Aromatics is -9% off from its 52-week high price and 209% above its 52-week low price.

 

The stock appears on our idea lists: Minervini Trend Template