We have seen earlier that experts have recommended Granules India for investment owing to its strong fundamentals.
Now, it appears that Granules has formed some sort of a technical position which will enable it to surge over the next few days (or weeks) and shower quick-fire gains on its shareholders.
This was revealed by Hitesh Patel, one of the moderators at the valuepickr forum.
Hitesh Patel is highly regarded by the other experts at the valuepickr forum for his deep understanding of the fundamental and technical aspects of stocks. As far back as in August 2012, Hitesh had revealed that his portfolio comprises of stocks like Mayur Uniquoters, Hawkins, Page Industries, Atul Auto, Ajanta Pharma etc. Each of the stocks has gone on to become a super-duper multibagger though it is not known whether Hitesh presently holds these stocks or not.
Hitesh’s opinion about Granules is expressed in succinct terms:
“Granules technical picture is a delight for any guy wanting to look into a perfectly uptrending stock. Note some features marked in the chart along with comments.
disc: Invested as a techno funda bet a couple of months back around 120.”
Hitesh has also annexed a chart which supposedly shows that the stock is at a break out point.
(Image Credit: Valuepickr forum)
The chart states that the “resistance” for the stock is at Rs. 164. This implies that if all goes as per plan, hefty gains of 25% are on the anvil from the CMP of Rs. 131.
It is significant that Hitesh has described the scenario as “perfectly uptrending”. This implies that the chances of a failure are remote.
A similar opinion with regard to the technical aspects of Granules has been expressed by other experts as well.
Elite Wealth Advisors has issued a report in which it is stated that Granules has made a “double bottom formation on daily chart” which is a “bullish pattern”. It is claimed that the target for the stock is Rs. 150 in a couple of weeks and that the stop loss is Rs. 122.
Other experts like Reliance Securities and Dr CK Narayan have expressed the same view though their target prices and stop losses are different.
We must bear in mind that while a view based on “pure” technical analysis is prone to high risk, a “techno-funda” view is relatively safer because even if the technical aspect fails, the fundamental aspect of the stock will bail it out. So, we can be reasonably certain of getting our money back even in the worst-case scenario!
Why is this blog promoting Granules continuously ? Is the author invested in this stock and hoping that the readers would take it to higher levels. The same tactic used by Porinju Veliyath via Twitter.
Top line growth was dismal in last quarter,higher profit was due to increase in opm.For a stock to perform for long, top line growth is must.We need to see top line growth in next quarter.I have token investment to keep watch on this stock.
#Stock #Market #Tips:
Granules India is fundamentally decent. The stock is dealing with PE of 19x which is undervalued at current levels. Revenues are growing with better pace and so as the earnings. One of the point of concern for the company is rising debt. March quarter result was better as far as earnings are concerned. Market capitalization is rising in folds since last couple of years. Volume is catching the stock all the way. Pharma sector is already looking decent at current levels as far as long term vision is concerned. Experts are all over keeping positive view on the company with nearly same targets and stoploss. Still it could be a better pick at current levels as well.
If its fully discovered stock and everyone is following it, then its no way available at reasonable valuation. If its really good company it will go multi-months consolidation before breaking out ATH
You can look at Escorts share price which is currently trading at Rs. 178.90. ESCORTS is one of the Multibagger Shares, identified by Dynamic Research at the end of every month. ESCORTS can be a great investment opportunity which can give you high return. ESCORTS is a well analysed Multibagger Stock, based on our technical and fundamental research, traded in very high volumes.
You can look at Nilkamal surged almost 8% on 16th May 2016 after posting Q4 result. The top line has jumped by 5.73% in 1 year comparing from FY15 to FY16 while bottom line has jumped by 124.79% YoY from Rs. 51.26 crs to Rs. 115.23crs. Total operating expense has gone up by 1.16% YoY, company’s operating margin is 9.17%. This concluded that company’s economies of scale are working very efficiently. However, falling crude oil price has helped companies to lower down its cost of material consumed by 5%, benefiting company by 36.64 crs in FY 2016. Net Profit margin has gone up by 5.75%.
For more details see
https://www.dynamiclevels.com/en/current-news/nilkamal-share-price-160516025249
I agree with the author. I have been watching Granules for nearly 2 years now and following each development. Granules is following a path of expansion which is sure to multiply its sales and profits consistently in each quarter. I am also investing in Granules with the belief that it is a sure multi-bagger. The immediate target within 3 months MAX is the level of 164, which it had earlier reached. For its pace of present achievement and future potential, it certainly looks underpriced – even when it achieves Rs.164.