Absolutely agree. I made the mistake of buying Sona in 2022 when the right time is now. Henceforth Sona should be a high growth compounder.

Hi, the momo strategy is rank based, unbiased, where as TA is discretionary that point is taken.
On research the following data is found:
Research shows that combining momentum strategies with technical analysis (TA) can enhance the effectiveness of momentum trading. Studies have found that momentum strategies, which focus on buying stocks with high past returns and selling those with low past returns, can benefit from the incorporation of TA indicators such as moving averages, relative strength index (RSI), and MACD (Moving Average Convergence Divergence).

One study highlights that using technical indicators to confirm momentum signals can improve returns and reduce drawdowns. For instance, using moving averages to confirm the trend can help avoid false signals, while RSI can provide insights into overbought or oversold conditions, enhancing entry and exit timing. The combination of momentum with TA can also help manage risk by identifying potential trend reversals earlier than momentum signals alone [❞] [❞].

Another research paper emphasizes that integrating TA with momentum can address some of the behavioral challenges of momentum investing, such as the tendency to hold onto losing positions for too long or selling winners too early. By providing more structured and data-driven signals, TA can help investors adhere to the strategy more consistently [❞].

In summary, merging momentum strategies with technical analysis can provide a more robust framework for momentum strategy, potentially improving performance and risk management. This combination leverages the strengths of both approaches, offering a comprehensive strategy that adapts to various market conditions.

Krsnaa Diagnostics –

Q4 and FY 24 concall and results highlights –

Company’s operating infra –

148 CT / MRI centers, 1400 X-Ray machines – contributing to 57 pc of revenues

120 – Pathology Labs, 1900 collection centers – contributing to 43 pc of revenues

Present across 150 district locations across India ( in 17 states and UTs )

Company is now averaging 1.5 lakh CT / MRI scans / month and 5 lakh X-Ray scans per month

Company is the largest Radio – diagnostics company in Asia

Company is only into B2G segment ( catering only to Govt patients / Govt hospitals ). Currently having a bid win ratio of 75 pc. Company is present in most states except – Gujarat, Bihar, Jharkhand, WB, Telangana, Chattisgarh, Haryana, Kerala – among major states

FY 24 outcomes –

Sales – 619 vs 487 cr
EBITDA – 146 vs 124 cr ( margins @ 24 vs 25 pc )
PAT – 56 vs 62 cr ( margins @ 9 vs 13 pc )

Revenues from old centers – 386 cr, EBITDA margins @ 33 pc

Revenues from new centers – 233 cr, EBITDA margins @ 8 pc ( as they scale up, there is massive scope for margin expansion )

Q4 outcomes –

Sales – 166 vs 158 cr
EBITDA – 44 vs 37 cr ( margins @ 26 vs 24 pc )
PAT – 18 vs 13 cr ( margins @ 11 vs 8 pc )

In last 12 months, company has put up 15 new CT/MRI centers and 25 new Pathology labs + 800 collection centers

Company is the process of setting up 22 new CT/MRI centers in Maharashtra + MP ( 17 + 05 )

Company is now venturing into B2C segment. Company will leverage its existing infra for the same and will try and keep the pricing lower vs pure B2C players

Receivable days are currently @ 68 days ( excluding the recievables from HP which are elevated ). Increase in receivable days is also due to the 2024 general elections as a similar increase was witnessed during 2019 elections as well ( this is a key monitorable, hope it reduces towards the end of Q1 )

LY in July, Rajasthan Govt had arbitrarily cancelled the State’s health mission tender given to the company ( worth Rs 450 cr ). The matter is sub-judice and a verdict is expected shortly

Generally it takes about 3 yrs for a new center to mature and to start reporting healthy EBITDA margins. Company expects its centers in Punjab and Chandigarh to start turning around soon

Company looking at 25 pc kind of CAGR on Topline for next 2-3 yrs. Also expect the EBITDA margins to stabilise at around 25 pc

Expecting the receivables from Himachal Pradesh to start moderating towards the end of Q1 / beginning of Q2

Capex lined up for next FY @ 150 cr ( excluding Rajasthan )

Disc: initiated a tracking position, biased, not SEBI registered, not a buy/sell recommendation

Didnt quite understand. Momentum strategy in itself is indirectly an outcome of technical analysis although you are not explicitly looking at charts ( assuming the strategy is about picking the high ranked stocks ).

But another variant of a momentum strategy could be to look at charts and take a discretionary call on which stock is better placed on the momentum track.

So its really about picking a ranking approach ( non-discretionary ) vs a charts approach ( discretionary )…both have their merits ( hard to objectively compare or evaluate ).

I personally use a ranking approach.