[Mixed Signals] Archean Chemical Industries - What's your view?

20 sty

[Mixed Signals] Archean Chemical Industries Ltd. What's your view?

Fundamentals
MCAP- 7400 Cr
PE - 27.86 < Industry PE of 32.2, Moderately priced
PEG Ratio is 0.64, excellent
Debt to Equity is 0.02 and ICR is 42
ROE is 19.45%, ROCE is 25.75% ( 5yr ROCE is 29.26%)
Sales growth is -17%, 5yr Sales growth is 18%
Profit Growth is -33%, 5yr Profit growth is 43%
Promoter holding is 53.44% , marginally down in last one year
FII Holding has gone up steadily in past few quarters
DII holding on downtrend , in last few quarters
Latest results - Poor results for past few quarters

Technicals
CMP - 596
Bearish - below EMA 9, 21,63, 200 on daily charts , RSI(14) is 19
Much oversold

Commentary
As seen in the charts the stock has
1.Formed a head and shoulder pattern. If it decisively breaks below 580-600 zone, it should head straight to 520 levels as per head and shoulders target
Bearish Target : 520
Stop loss : 600, just above 590 levels
Timeframe : 6-9 months
2. Also reached near demand zone at 590 levels. It has taken support from 590 levels multiple times in the past and risen above.
Bullish Target : 650>725>800
Stop loss : 580
Timeframe : 6-9 months

Risks : Poor results in the last few quarters.

I will be firming up my view in the next couple of weeks based on results on Feb 3rd.

Disclosure 1 - Invested
Disclosure 3 - This is Not investment advice. Treat it as educational

3 dni temu

Zlecenie aktywne

Superb Bounce, ACI Bounced exactly from Strong Support zone and now within the demand zone.
Results coming on 7th Feb... Keep an eye out for the results