AXIS BANK - Long - Monthly 25.2.2017

25 בפבר׳ 2017

AXIS BANK 25.2.2017 Monthly

Date of Trade : 25 Feb 2017

Entry Date: Buy Stop Order is placed

Trade Entry:
Market :BSE
Stock : AXISBANK (Axis Bank Ltd)
Long/Short : Long
Current Price: 524.55
Entry Price: 531.89
Time Frame : Monthly

Type of Trade:
Long Term Trade

Reason For Trade:
Continuous Growth over the years
Dividend payout has increased over the years
Setup Looks Good
Annual Net Profit as on MAach 2016 is higher than previous year
Constructive outlook is reflecting Under M
Technically a decent setup

Stop:
490.28

Target:
617.49

Pluses:
Constructive outlook is reflecting Under Modi Govt. Policies
Setup is Good as per technical analysis
Good Risk Reward Ratio
RSI above 50
Stock is in uptrend

Minuses: Potential problems with the trade
Quarterly Net Profit of Sep 2016 and Dec 2016 is less than of Sep 2015 and Dec 2015
- Company has low interest coverage ratio.
- Promoter holding is low: 28.91%
- Contingent liabilities of Rs.668725.82 Cr.
- Company might be capitalizing the interest cost
- Earnings include an other income of Rs.11372.16 Cr.
TTM Net profit is lower than previous year but in positive
Compounded Profit Growth (TTM- (year March 2017): -44.14%
Cash Flow is in negative

Brief Summary of emotions:
I am confident that the price will move up but not confident that it will hit the target.
The Target needs to be reevaluated after one month or the trade can be closed after a month just before March 2017 Financial results are declared