SUNPHARMA - Long - Monthly Time frame
Analysis of Sunpharma 0.61% 0.63% and TV18 was requested by my dear friend Vishal.
Vishal I hope I have answered majority of your questions
SUNPHARMA 0.61% 25th Feb 2017
Trade
Date of Identifying the Trade : 25th Feb 2017
Entry Date: Buy Stop order is placed at
Trade Entry
Market : BSE 0.11%
Stock: SUNPHARMA 0.61%
Long/Short: Long
Current Price: 673.20
Entry Price 1: 697.51 (Aggressive Entry)
Entry Price 2 : 744 (Conservative Entry)
Time Frame: Monthly
Type of Trade:
Long Term Trade
Reason For Trade: The logic and /or specific strategy used to trigger the trade.
Price has bounced from monthly support resistance area
Potential setup
Price has just gone below 50 SMA and is holding up that level. Possibility of reversal
Fundamentally strong
Promoter & Promoter Group holding is of 54.39% - holding has decreased but still Good
Public holding is: 45.61
Shareholding Pattern Public Shareholder: bseindia.com/corporates/shpSecurities.aspx?scripcd=524715&qtrid=92.00&Flag=New
Bearish volume has decline and bullish volume is increased in the month of Feb 2017
Recently Europen medicine Agency approved Sun Pharma's wholly owned subsidiary, Generic drug of Tobramycin."
Stop:
975.58
Target:
Target 1: 850
Target 2: 950
Pluses: Positive aspects of th trade.
Fundamentally strong
RSI has bounced from trendline
Price is moving at support level and just around 50 SMA level
Level is holding up
Bullish sentiments are reflecting in the market
Good Risk Reward ratio
Sunpharma 0.61% is number one company among it's peers CMP/BV is 4.27 >1 which is good.
Annual net profit is good
Company is paying dividend
Recently Europen medicine Agency approved Sun Pharma's wholly owned subsidiary, Generic drug of Tobramycin."
Compounded Sales Growth:
10 Years: 33.24% 5 Years:37.61% 3 Years:35.75% TTM:19.24%
Compounded Profit Growth:
10 Years:24.55% 5 Years:23.62% 3 Years:15.06% TTM:74.52%
Return on Equity:
10 Years:22.66% 5 Years:22.33% 3 Years:21.81% TTM:18%
Minuses: Potential problems with the trade
Stock is in downtrend
RSI is below 50 at 44
- Promoter's stake has decreased
- Though the company is reporting regular profits, it is not paying out tax
- Company might be capitalizing the interest cost
Quarterly profit: Dec -2.36% 2016 was less than it's previous two-quarters,
Cash Flow had reduced in MArch 2016 as compared to March 2014 and March 2015
Brief Summary of emotions: nervous, confident, not confident, sleepy, stressed, tired...etc (Mention the reason for your emotions)
I will be little nervous if I am taking aggressive entry however it's worth a risk if risk reward ratio is considered.
If the indicators are aligned when the price is near conservative entry then I'll be confident in entering the trade.
Vishal I hope I have answered majority of your questions
SUNPHARMA 0.61% 25th Feb 2017
Trade
Date of Identifying the Trade : 25th Feb 2017
Entry Date: Buy Stop order is placed at
Trade Entry
Market : BSE 0.11%
Stock: SUNPHARMA 0.61%
Long/Short: Long
Current Price: 673.20
Entry Price 1: 697.51 (Aggressive Entry)
Entry Price 2 : 744 (Conservative Entry)
Time Frame: Monthly
Type of Trade:
Long Term Trade
Reason For Trade: The logic and /or specific strategy used to trigger the trade.
Price has bounced from monthly support resistance area
Potential setup
Price has just gone below 50 SMA and is holding up that level. Possibility of reversal
Fundamentally strong
Promoter & Promoter Group holding is of 54.39% - holding has decreased but still Good
Public holding is: 45.61
Shareholding Pattern Public Shareholder: bseindia.com/corporates/shpSecurities.aspx?scripcd=524715&qtrid=92.00&Flag=New
Bearish volume has decline and bullish volume is increased in the month of Feb 2017
Recently Europen medicine Agency approved Sun Pharma's wholly owned subsidiary, Generic drug of Tobramycin."
Stop:
975.58
Target:
Target 1: 850
Target 2: 950
Pluses: Positive aspects of th trade.
Fundamentally strong
RSI has bounced from trendline
Price is moving at support level and just around 50 SMA level
Level is holding up
Bullish sentiments are reflecting in the market
Good Risk Reward ratio
Sunpharma 0.61% is number one company among it's peers CMP/BV is 4.27 >1 which is good.
Annual net profit is good
Company is paying dividend
Recently Europen medicine Agency approved Sun Pharma's wholly owned subsidiary, Generic drug of Tobramycin."
Compounded Sales Growth:
10 Years: 33.24% 5 Years:37.61% 3 Years:35.75% TTM:19.24%
Compounded Profit Growth:
10 Years:24.55% 5 Years:23.62% 3 Years:15.06% TTM:74.52%
Return on Equity:
10 Years:22.66% 5 Years:22.33% 3 Years:21.81% TTM:18%
Minuses: Potential problems with the trade
Stock is in downtrend
RSI is below 50 at 44
- Promoter's stake has decreased
- Though the company is reporting regular profits, it is not paying out tax
- Company might be capitalizing the interest cost
Quarterly profit: Dec -2.36% 2016 was less than it's previous two-quarters,
Cash Flow had reduced in MArch 2016 as compared to March 2014 and March 2015
Brief Summary of emotions: nervous, confident, not confident, sleepy, stressed, tired...etc (Mention the reason for your emotions)
I will be little nervous if I am taking aggressive entry however it's worth a risk if risk reward ratio is considered.
If the indicators are aligned when the price is near conservative entry then I'll be confident in entering the trade.
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