Sundram Fasteners (Nse) stock has cleared a 8-week, 22% deep Cup Without Handle Base this week. Currently, the stock is trading around just 1% away from its ideal buy price of INR 840. 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 14.54% away from the 10-week moving average.
In the last twelve months, Sundram Fasteners has rallied nearly 167.6% as compared to 58.9% for the Nifty500. It has a Relative Strength Rating of 71. 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 Sundram Fasteners can maintain this outperformance, it could make sense as a CANSLIM trade.
Another key part of the jigsaw is institutional sponsorship. Sundaram Fasteners 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, Sundram Fasteners has an excellent EPS Rank of 85, which indicates consistency in earnings. The earnings and sales for the stock have seen de-growth of -16% and --9%, respectively over the past three years. Its 3-years earnings stability is 20, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 7% and 2%, respectively. The 5-years earnings stability is 37. The return on equity for the last reported year is 17%.
The stock belongs to industry group of Auto/Truck-Original Eqp. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 66. The current price of Sundaram Fasteners is -2% off from its 52-week high price and 183% above it 52-week low price.
The stock appears on our idea lists: Minervini Trend Template.