Hatsun Agro Products stock has cleared a 22-week, 27% deep Cup Without Handle Base this week. Currently, the stock is trading around just -3% away from its ideal buy price of INR 884. The stock is worth watching at the current price level.
The stock ended the week on a bullish note. It closed 3.67% up on a 61% greater volume than the 10-week average. You want to see a strong close on heavy volume like this before initiating a position. That signals institutional buying. You would also want to see the same price volume momentum to continue in the coming weeks.
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 9.08% away from the 10-week moving average.
In the last twelve months, Hatsun Agro Products has rallied nearly 117.6% as compared to 59.4% for the Nifty500. It has a Relative Strength Rating of 60. 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 four weeks. The overall long term trend of the line is also trending upward. If Hatsun Agro Products can maintain this outperformance, it could make sense as a CANSLIM trade.
Another key part of the jigsaw is institutional sponsorship. Hatsun Agro Products has an Accumulation/Distribution Rating of 'B+'. This represents heavy institutional buying over the past few weeks. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.
On the earnings front, Hatsun Agro Products has an excellent EPS Rank of 97, which indicates consistency in earnings. The earnings and sales for the stock have grown by 22% and 8%, respectively over the past three years. Its 3-years earnings stability is 17, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 13% and 9%, respectively. The 5-years earnings stability is 22. The return on equity for the last reported year is 26%.
The stock belongs to industry group of Food-Dairy Products. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 77. The current price of Hatsun Agro Products is -3% off from its 52-week high price and 123% above it 52-week low price.
The stock appears on our idea lists: Trend Template - 5 Months.