MarketSmith India Stories 5 Apr 2021
The Steel-Producers industry group is one of the outperforming groups and has been displaying tremendous strength amid recent sell off in the general market. The group has a strong Group Rank of 20, improved when compared to the rank of 30, one month ago.
While most of the stocks in this group already have had a huge run, there are a couple of stocks still forming constructive price actions and in the buyable range. Ratnamani Metals is one such stock.
Ratnamani Metals stock has broken out of a 12-week, 19% deep Cup base 7-weeks ago. The stock then rallied around 17% before pulling back towards the 21-day simple moving average. The stock is worth watching as it is trading just -3% off from its 52-week high price.
The stock fell 4.4% in the third week of March, on heavy volume. That looked like a weakness in the stock, but the stock found support at its 21-day moving average. In the last three weeks, it has displayed strength as compared to the broader market.
In the last twelve months, Ratnamani Metals has rallied over 100.7% as compared to 66.9% for the Nifty500. It has a Relative Strength Rating of 77. 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 RS Line is offering a lot of encouragement to investors. The overall long term trend of the line is upward and near its new high ground. In the last three weeks, it is trending upward sharply. If Ratnamani Metals can maintain this strength, it could make sense as a CANSLIM trade.
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 9.8% away from the 10-week moving average.
Another key part of the jigsaw is institutional sponsorship. Ratnamani Metals 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, Ratnamani Metals has an EPS Rank of 61, which is okay but fails to impress a growth stock investor. The earnings and sales for the stock have grown by 24% and 12%, respectively over the past three years. Its 3-years earnings stability is 15, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 17% and 14%, respectively. The 5-years earnings stability is 15. The return on equity for the last reported year is 18%.
The stock appears on our idea lists: Trend Template - 5 Months, Long Term Leaders.Related Articles :
What do you think? Please email us any questions or comments.Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.