Arvind SmartSpaces Breakout

8 wrz 2022

1. Buy or Sell at your own risk
2. Don't risk more than 1%-2% of your capital as stop loss
3. Position Size formula:- Stop Loss Amount/(Buy Price-Initial Stop Loss Price)
4. Sell on RSI close below 30 (or use any other method of your liking)
5. Some other ways to sell stocks can be
a. 25% or 50% up in three weeks or less
b. Weekly tailing tops with high volume
c. Exhaustion gaps
d. Heavy daily volume without further upside
e. Largest one day price drop

After a consolidation since November 2021, ARVSMART has given a breakout today. Buy with a stop just below ₹220. (One can use the low of the previous bar/supertrend indicator/previous support point/fixed percentage from the buy price as stop loss also)

Strengths: -
1. Quarterly sales growth is at 124% and quarterly profit growth is at 219%, TTM sales growth is at 75% and TTM profit growth is at 86%

2. Debt to equity at 0.07(less than 1 is good), Interest Coverage at 4.66(greater than 3 is good), Current Ratio at 1.59(greater than 1.5 is good)

3. India Ratings and Research (Ind-Ra) has upgraded Arvind SmartSpaces Limited’s (ASSL) Long-Term Issuer Rating to ‘IND A’ from ‘IND A-’. The Outlook is Positive.

Weaknesses: -
1. Stock is trading at 2.57 times its book value

2. The company has delivered a poor sales growth of 10% over the past five years

3. The company has a low return on equity of 8% for the last 3 years

4. Promoter holding has decreased over the last 3 years: -5.58%

Disclaimer: I am not SEBI Registered. Do trade or invest at your own risk, I am not responsible for any losses and won't claim anything from your profits either. Take financial advice from your advisors before jumping in.