Asset: Pudumjee Paper Products Ltd (PDMJEPAPER)
Breakout Level: 137
Potential Target: 205
Stop Loss: 128 (~6%)
Timeframe: Short to Low Medium term
Risk to Reward ratio : 1:9
Rationale:
Fundamentals -
Fundamentally decent stock with the following attributes:
* ROCE - 22.4%
* ROE - 16.7%
* Debt to Equity - 0.02
* Stock PE 12.0 / Industry PE - 16.1 || Stock PBV 2.16 / Industry PBV 0.82 - Company is slightly underpriced
* EPS / Revenue - Increasing
Technicals -
⦁ The price has moved above the 200 DMA and started consolidating
⦁ Low volume accumulation indicating a possibility to move up quickly from here
⦁ 10 DMA has moved above the 20 DMA indicating short term strength is aligning itself properly with medium term (monthly) outlook
⦁ RS / ADR and Momentum lines are beginning to look ready to blast
⦁ Weekly and Monthly structures look good
Market analysis
* Promoters are holding steady
Cons
* Limited institutional activity so a cautious entry should be fine.
This analysis is for educational purposes only and should not be considered as financial advice. Trading and investing in financial markets involve significant risk, and past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any trading or investment decisions. The author is not responsible for any financial losses or damages that may result from the use of this information.
Breakout Level: 137
Potential Target: 205
Stop Loss: 128 (~6%)
Timeframe: Short to Low Medium term
Risk to Reward ratio : 1:9
Rationale:
Fundamentals -
Fundamentally decent stock with the following attributes:
* ROCE - 22.4%
* ROE - 16.7%
* Debt to Equity - 0.02
* Stock PE 12.0 / Industry PE - 16.1 || Stock PBV 2.16 / Industry PBV 0.82 - Company is slightly underpriced
* EPS / Revenue - Increasing
Technicals -
⦁ The price has moved above the 200 DMA and started consolidating
⦁ Low volume accumulation indicating a possibility to move up quickly from here
⦁ 10 DMA has moved above the 20 DMA indicating short term strength is aligning itself properly with medium term (monthly) outlook
⦁ RS / ADR and Momentum lines are beginning to look ready to blast
⦁ Weekly and Monthly structures look good
Market analysis
* Promoters are holding steady
Cons
* Limited institutional activity so a cautious entry should be fine.
This analysis is for educational purposes only and should not be considered as financial advice. Trading and investing in financial markets involve significant risk, and past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any trading or investment decisions. The author is not responsible for any financial losses or damages that may result from the use of this information.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.