Heidelbergcement - Investment stock in Symmetrical Triangle
Scrip price action can be seen in symmetrical triangle with lower highs and higher lows. However, the pattern still remains to be connected when the lines converge as they are extended and the symmetrical triangle takes shape. We can always think of it as a contracting wedge, wide at the beginning and narrowing over time.
Expecting the scrip to surpass 52-week highs post breakout this time after Bearish divergence pullback to enter at appropriate price levels.
Noticing the current price action, The scrip could be pulled back. Would plan to buy on dips near support levels aiming for long term investment purposes.
Pros:
1) Borrowings (debt) coming down drastically with no stocks pledged with interest costs going down
2) Stellar Q4 results posted with drastic increase in YoY PAT, EBIDTA margins:
indiainfoline.com/article/equity-earnings-result-commentary/heidelberg-cement-india-ltd-s-q4fy18-standalone-net-profit-rises-40-8-yoy-to-rs52-1cr-beats-estimates-118052400029_1.html
3) Dividend paying company
4) Attractive valuation in comparison with peers. Would prefer to allocate my capital to this company from Sanghi Industries which didnt post good results. Sanghi industries could manage to increase their income from other sources which isnt sustainable
Technical factors given in chart..
Cons:
1) P/E on higher side: 29.69
2) Price to book value: 3.05 although P/S appear to be fine
3) Return on equity: 8.18%
4) The company has delivered a poor growth of 11.69% over past five years. although I expect the growth sales to increase in coming quarters with company volume growth being driven by pickup in construction activities in most parts of central India (especially in Uttar Pradesh) with better availability of construction materials in most parts of Central India.
This Small Cap stock with Good quality and Attractive valuation looks Positive for Long Term
Expecting the scrip to surpass 52-week highs post breakout this time after Bearish divergence pullback to enter at appropriate price levels.
Noticing the current price action, The scrip could be pulled back. Would plan to buy on dips near support levels aiming for long term investment purposes.
Pros:
1) Borrowings (debt) coming down drastically with no stocks pledged with interest costs going down
2) Stellar Q4 results posted with drastic increase in YoY PAT, EBIDTA margins:
indiainfoline.com/article/equity-earnings-result-commentary/heidelberg-cement-india-ltd-s-q4fy18-standalone-net-profit-rises-40-8-yoy-to-rs52-1cr-beats-estimates-118052400029_1.html
3) Dividend paying company
4) Attractive valuation in comparison with peers. Would prefer to allocate my capital to this company from Sanghi Industries which didnt post good results. Sanghi industries could manage to increase their income from other sources which isnt sustainable
Technical factors given in chart..
Cons:
1) P/E on higher side: 29.69
2) Price to book value: 3.05 although P/S appear to be fine
3) Return on equity: 8.18%
4) The company has delivered a poor growth of 11.69% over past five years. although I expect the growth sales to increase in coming quarters with company volume growth being driven by pickup in construction activities in most parts of central India (especially in Uttar Pradesh) with better availability of construction materials in most parts of Central India.
This Small Cap stock with Good quality and Attractive valuation looks Positive for Long Term
הערה
Nicely drafted research report squarely emphasizing on the macro-factors of the company :hdfcsec.com/hsl.research.pdf/HCIL - Pick of the Week - 131117.pdf
עסקה פעילה
Had been activated around 2 months backעסקה פעילה
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