Asset: Pennar Industries Ltd (PENIND)
Entry Level: 233
Potential Target: 300 (1st target)
Stop Loss: 221 (~4.5% risk)
Timeframe: Short to Medium term
Risk to Reward ratio : 1:2
Rationale:
Fundamentals -
Fundamentally decent stock with the following attributes:
* ROCE - 16.0%
* ROE - 12.7%
* Debt to Equity - 0.81
* Stock PE 26 / Industry PE - 37.4 || Stock PBV 3.11 / Industry PBV 4.21 - Company is underpriced
* EPS / Revenue - Has been increasing for the last 6 months
* ADR is 3.7%
Technical -
* Overall structure - Structure seems to be forming a cup after a breakout from an earlier cup structure, 10 DMA is crossing above the 20 DMA
* Relative Strength is picking up.
* Multiple timeframe analysis - Weekly structure is forming a penant structure
Market analysis
* Promoter holding has gone up.
* Holding pattern - FIIs increased significantly / DIIs have added / Promoter holding steady / Retail reducing
Cons
* Momentum and ADR is low indicating slow movement potential
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.
Entry Level: 233
Potential Target: 300 (1st target)
Stop Loss: 221 (~4.5% risk)
Timeframe: Short to Medium term
Risk to Reward ratio : 1:2
Rationale:
Fundamentals -
Fundamentally decent stock with the following attributes:
* ROCE - 16.0%
* ROE - 12.7%
* Debt to Equity - 0.81
* Stock PE 26 / Industry PE - 37.4 || Stock PBV 3.11 / Industry PBV 4.21 - Company is underpriced
* EPS / Revenue - Has been increasing for the last 6 months
* ADR is 3.7%
Technical -
* Overall structure - Structure seems to be forming a cup after a breakout from an earlier cup structure, 10 DMA is crossing above the 20 DMA
* Relative Strength is picking up.
* Multiple timeframe analysis - Weekly structure is forming a penant structure
Market analysis
* Promoter holding has gone up.
* Holding pattern - FIIs increased significantly / DIIs have added / Promoter holding steady / Retail reducing
Cons
* Momentum and ADR is low indicating slow movement potential
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.
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Forming structure again to move
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.