MarketSmith India Stories
Srf Ltd. stock has broken out of a 5-week, 12% deep Flat Base 3-weeks ago. However, the stock is still offering investors an opportunity to get on board as the current price is only 4% away from the ideal buy price of INR 6999.
The stock closed in red for the week, but the volume remained below average. It was down 0.33% on a -55% lower volume than the 10-week average. It will be interesting to see how the stock behaves in the coming week. You would want to see the price volume momentum pick up in the coming trading sessions.
In the last twelve months, Srf Ltd. has rallied nearly 95.4% as compared to 50.3% for the Nifty500. It has a Relative Strength Rating of 57. We definitely would like to see an 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 Srf Ltd. can maintain this outperformance, it could make sense as a CANSLIM trade.
Srf Ltd. stock has strong institutional support. The Accumulation/Distribution Rating of ‘B+’ represents heavy institutional buying over the past 13 weeks. Although the shares held by institutions dropped in the last quarter, the number of institutions holding the stock increased at the same time. This shows increasing interest among the institutions.
On the earnings front, Srf Ltd. has an excellent EPS Rank of 90, which indicates consistency in earnings. The earnings and sales for the stock have grown by 36% and 10%, respectively over the past three years. Its 3-years earnings stability is 8, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 23% and 14%, respectively. The 5-years earnings stability is 13. The return on equity for the last reported year is 20%.
The stock belongs to the industry group of Chemicals-Specialty, which is exhibiting a fair amount of strength in the current market environment. The current industry group rank is 42. The current price of Srf Ltd. is 0% off from its 52-week high price and 104% above its 52-week low price.
The stock appears on our idealists: Minervini Trend Template.
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