Bajaj Finserv Ltd stock has broken out of a 10-week, 15% deep Consolidation Base 4-weeks ago. However, the stock is still worth watching as the current price is only 8% away from the ideal buy price of INR 10579.
The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and the 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around 8.76 % away from the 10-week moving average.
In the last twelve months, Bajaj Finserv Ltd has rallied nearly 153.5% as compared to 59.4% for the Nifty500. It has a Relative Strength Rating of 68. We definitely would like to see improvement in the rating. At this point we are taking a step back and focusing on the RS Line.
The RS Line remains in a downtrend for the last few weeks. However, this is not unusual for a leading stock as the stock sets up base for its next leg up or at the very beginning of a new trend. At this point, the overall long term trend of the line is upward. If Bajaj Finserv Ltd can maintain a healthy upward move, it could make sense as a CANSLIM trade.
Another key part of the jigsaw is institutional sponsorship. Bajaj Finserv Ltd has an Accumulation/Distribution Rating of ‘B+’. This represents heavy institutional buying over the past few weeks. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.
On the earnings front, Bajaj Finserv Ltd has an excellent EPS Rank of 97, which indicates consistency in earnings. The earnings and sales for the stock have grown by 14% and 24%, respectively over the past three years. Its 3-years earnings stability is 7, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 17% and 36%, respectively. The 5-years earnings stability is 6. The return on equity for the last reported year is 13%.
The stock belongs to industry group of Insurance-Brokers. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 73. The current price of Bajaj Finserv Ltd is -2% off from its 52-week high price and 185% above it 52-week low price.
The stock appears on our idea lists: Minervini Trend Template – 5 Months.
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