MarketSmith India Stories
Dr. Lal Pathlabs Ltd stock has cleared a 10-week, 23% deep Cup With Handle Base this week. Currently, the stock is trading around just -1% away from its ideal buy price of INR 3292. The stock is offering investors an opportunity to get on board at the current price.
The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and the 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around 11.6% away from the 10-week moving average.
In the last twelve months, Dr. Lal Pathlabs Ltd has rallied nearly 102.3% as compared to 49.5% for the Nifty500. It has a Relative Strength Rating of 59. We definitely would like to see improvement in the rating. At this point we are taking a step back and focusing on the RS Line.
The Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the last four weeks. The overall long term trend of the line is also trending upward. If Dr. Lal Pathlabs Ltd can maintain this outperformance, it could make sense as a CANSLIM trade.
Another key part of the jigsaw is institutional sponsorship. Dr. Lal Pathlabs Ltd has an Accumulation/Distribution Rating of ‘A’. This represents heavy institutional buying over the past 13 weeks. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.
On the earnings front, Dr. Lal Pathlabs Ltd has an excellent EPS Rank of 94, which indicates consistency in earnings. The earnings and sales for the stock have grown by 12% and 12%, respectively over the past three years. Its 3-years earnings stability is 9, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 12% and 13%, respectively. The 5-years earnings stability is 8. The return on equity for the last reported year is 26%.
The stock belongs to the industry group of Medical-Services, which is exhibiting a fair amount of strength in the current market environment. The current industry group rank is 62. The current price of Dr. Lal Pathlabs Ltd is -2% off from its 52-week high price and 112% above its 52-week low price.
The stock appears on our idea lists: Minervini Trend Template
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