Balkrishna industries stock is worth watching as the stock is forming a 13-week, 19% deep Cup Without Handle Base. The current price is only 1% away from its ideal buy price of INR 1875. Aggressive investors could use any tight area breakout inside the base as an opportunity to initiate a small position. A conservative approach may be to add the stock to your watchlist so that you are ready to pounce if it breaks out to the traditional entry point.
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 10.37% away from the 10-week moving average.
In the last twelve months, Balkrishna industries has rallied nearly 105.1% as compared to 60.7% for the Nifty500. It has a Relative Strength Rating of 58. We definitely would like see improvement in the rating. At this point we are taking a step back and focusing on the RS Line.
The Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the last four weeks. The overall long term trend of the line is also trending upward. If Balkrishna industries can maintain this outperformance, it could make sense as a CANSLIM trade.
Balkrishna industries stock has a strong institutional support.
The Accumulation/Distribution Rating of ‘B’ represents heavy institutional buying over the past few weeks. Although the shares held by institutions dropped in the last quarter, the number of institutions holding the stock increased at the same time. This shows increasing interest among the institutions.
On the earnings front, Balkrishna industries has an excellent EPS Rank of 92, which indicates consistency in earnings. The earnings and sales for the stock have grown by 12% and 8%, respectively over the past three years. Its 3-years earnings stability is 6, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 15% and 9%, respectively. The 5-years earnings stability is 9. The return on equity for the last reported year is 20%.
The stock belongs to industry group of Auto/Truck-Tires & Misc. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 92. The current price of Balkrishna industries is 0% off from its 52-week high price and 114% above it 52-week low price.
The stock appears on our idea lists: Trend Template – 5 Months.
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