Godrej Industries stock has broken out of a 5-week, 11% deep Flat Base 2-weeks ago. However, the stock is still offering investors an opportunity to get on board as the current price is only 0% away from the ideal buy price of INR 555.
In the last twelve months, Godrej Industries has rallied nearly 78.6% as compared to 59.4% for the Nifty500. It has a Relative Strength Rating of 65. 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 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 3.89% away from the 10-week moving average.
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 Godrej Industries can maintain this outperformance, it could make sense as a CANSLIM trade.
On the earnings front, Godrej Industries has an excellent EPS Rank of 89, which indicates consistency in earnings. The sales for the stock have grown by 5% over the past three years; however the earnings growth remained muted at -2%. Its 3-years earnings stability is 24, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 20% and 8%, respectively. The 5-years earnings stability is 29. The return on equity for the last reported year is 8%.
The stock belongs to the industry group of Diversified Operations, which is exhibiting a fair amount of strength in the current market environment. The current industry group rank is 51. The current price of Godrej Industries is -10% off from its 52-week high price and 117% above its 52-week low price.
The stock appears on our idea lists: Trend Template – 5 Months.
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