Welspun India stock is worth watching as the stock is forming a 7-week, 14% deep Flat Base. The current price is only -2% away from its ideal buy price of INR 88. 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 9.85% away from the 10-week moving average.
Welspun India has been an outperforming stock as compared to the broader market. It has a strong Relative Strength Rating of 82. In the last twelve months, the stock has rallied over 244.2% as compared to 58.7% for the Nifty500.
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 Welspun India can maintain this outperformance, it could make sense as a CANSLIM trade.
Welspun India stock has a strong institutional support. The Accumulation/Distribution Rating of 'B+' 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, Welspun India has an EPS Rank of 59, which is okay but fails to impress a growth stock investor. The earnings and sales for the stock have grown by 3% and 5%, respectively over the past three years. Its 3-years earnings stability is 29, on a 0 to 99 scale (lower the better). Over the past five years, the sales for the stock have grown by 4%; however the earnings growth remained muted at -9%. The 5-years earnings stability is 35. The return on equity for the last reported year is 18%.
The stock belongs to the industry group of Apparel-Clothing Mfg, which is exhibiting a fair amount of strength in the current market environment. The current industry group rank is 55. The current price of Welspun India is at its 52-week high and its 52-week high price and 281% above its 52-week low price.