Fundamentals
Market cap: ~ ₹2,200 crore.
P/E ratio: ~ 55-70x (various sources) which is very high for current growth.
Return on Equity (ROE): ~ 3-8% over recent years — relatively weak.
5-year sales growth: ~10% (modest) for the business.
Industry: Textiles / fabrics (synthetic blended yarn, denim, etc.) — cyclical & cost sensitive.
MarketScreener
Valuation concern: Some tools suggest it is overvalued relative to estimated intrinsic value.
Smart Investing
Fundamental takeaway: The business has moderate growth, low returns, high valuation — this raises risk if expectations don’t meet.
📈 Technical / Positional Setup
From the weekly chart you provided:
Price appears to be approaching/hovering around a resistance zone (~ ₹490-₹520 region) marked by prior highs.
The stock has had a consolidation in recent months with price range squeezing, which often precedes a directional move.
Support zone looks around ~ ₹380-₹420 based on prior consolidations and chart structure.
For a trade, you’d want a decisive breakout above resistance and confirmation (volume + close above).
Trade Plan:
Parameter Level / Zone
Entry Trigger On a sustained breakout above ~ ₹520-₹550
Stop-Loss Below support zone ~ ₹380-₹420
Target 1 ~ ₹650-₹700
Stretch Target 2 ~ ₹750-₹800 (if momentum strong and market favourable)
If price pulls back to the support zone (~₹400-₹420) and holds, that could be a safer “entry on dip” point rather than buying close to resistance.
Given the fundamental concerns (high valuation, low returns), this trade carries more risk — so keep sizing moderate and risk management strict.
Confirm breakout with volume & follow-through before full entry.
Market cap: ~ ₹2,200 crore.
P/E ratio: ~ 55-70x (various sources) which is very high for current growth.
Return on Equity (ROE): ~ 3-8% over recent years — relatively weak.
5-year sales growth: ~10% (modest) for the business.
Industry: Textiles / fabrics (synthetic blended yarn, denim, etc.) — cyclical & cost sensitive.
MarketScreener
Valuation concern: Some tools suggest it is overvalued relative to estimated intrinsic value.
Smart Investing
Fundamental takeaway: The business has moderate growth, low returns, high valuation — this raises risk if expectations don’t meet.
📈 Technical / Positional Setup
From the weekly chart you provided:
Price appears to be approaching/hovering around a resistance zone (~ ₹490-₹520 region) marked by prior highs.
The stock has had a consolidation in recent months with price range squeezing, which often precedes a directional move.
Support zone looks around ~ ₹380-₹420 based on prior consolidations and chart structure.
For a trade, you’d want a decisive breakout above resistance and confirmation (volume + close above).
Trade Plan:
Parameter Level / Zone
Entry Trigger On a sustained breakout above ~ ₹520-₹550
Stop-Loss Below support zone ~ ₹380-₹420
Target 1 ~ ₹650-₹700
Stretch Target 2 ~ ₹750-₹800 (if momentum strong and market favourable)
If price pulls back to the support zone (~₹400-₹420) and holds, that could be a safer “entry on dip” point rather than buying close to resistance.
Given the fundamental concerns (high valuation, low returns), this trade carries more risk — so keep sizing moderate and risk management strict.
Confirm breakout with volume & follow-through before full entry.
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.