Relaxo Footwears stock is forming a 7-week, 10% deep Flat Base. The current price is only 6% away from its ideal buy price of INR 1243. 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 0.9% away from the 10-week moving average.
In the last twelve months, Relaxo Footwears has rallied nearly 81.8% as compared to 46.3% for the Nifty500. It has a Relative Strength Rating of 54. 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 Looks like it's offering 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 Relaxo Footwears can maintain this outperformance, it could make sense as a CANSLIM trade.
Relaxo Footwear's 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, Relaxo Footwears has an excellent EPS Rank of 92, which indicates consistency in earnings. The earnings and sales for the stock have grown by 20% and 3%, respectively over the past three years. Its 3-years earnings stability is 8, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 18% and 8%, 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 Apparel-Shoes & Rel Mfg. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 87. The current price of Relaxo Footwears is -6% off from its 52-week high price and 91% above its 52-week low price.
The stock appears on our idea lists: Minervini Trend Template.