Solara Active Pharma stock is worth watching as the stock is forming a 11-week, 27% deep Cup Without Handle Base. The current price is only 1% away from its ideal buy price of INR 1625. 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 watchlist 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 15.03% away from the 10-week moving average.
In the last twelve months, Solara Active Pharma has rallied nearly 159.6% as compared to 49.1% for the Nifty500. It has a Relative Strength Rating of 77. 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 few weeks. The overall long term trend of the line is also trending upward. If Solara Active Pharma can maintain this outperformance, it could make sense as a CANSLIM trade.
Another key part of the jigsaw is institutional sponsorship. Solara Active Pharma has an Accumulation/Distribution Rating of 'A+'. This represents heavy institutional buying over the past 13 weeks. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.
On the earnings front, Solara Active Pharma has an EPS Rank of 55, which is okay but fails to impress a growth stock investor. The earnings and sales for the stock have grown by 80% and 6%, respectively over the past three years. Its 3-years earnings stability is 8, on a 0 to 99 scale (lower the better). The return on equity for the last reported year is 11%.
The stock belongs to industry group of Medical-Diversified. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 86. The current price of Solara Active Pharma is -2% off from its 52-week high price and 258% above it 52-week low price.