Chambal Fertilizers Chemicals Limited has cleared a 13-week, 25% deep Consolidation Base this week. Currently, the stock is trading around just 4% away from its ideal buy price of INR 267. The stock is offering investors an opportunity to get on board at the current price.
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 19.12% away from the 10-week moving average.
In the last twelve months, Chambal Fertilizers has rallied nearly 98.9% as compared to 61.1% for the Nifty500. It has a Relative Strength Rating of 68. 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 Chambal Fertilizers can maintain this outperformance, it could make sense as a CANSLIM trade.
Chambal Fertilizers & Chemicals Limited has a strong institutional support. The Accumulation/Distribution Rating of 'A+' represents heavy institutional buying over the past few weeks. Although the number of institutions holding the stock dropped in the last quarter, the number of shares held by the institutions increased at the same time.
On the earnings front, Chambal Fertilizers has an excellent EPS Rank of 96, which indicates consistency in earnings. The earnings and sales for the stock have grown by 58% and 73%, respectively over the past three years. Its 3-years earnings stability is 13, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 47% and 21%, respectively. The 5-years earnings stability is 12. The return on equity for the last reported year is 38%.
The stock belongs to the industry group of Chemicals-Agricultural, which is exhibiting a fair amount of strength in the current market environment. The current industry group rank is 53. The current price of Chambal Fertilizers is -1% off from its 52-week high price and 118% above its 52-week low price.
The stock appears on our idea lists: Trend Template - 5 Months.
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