Srf Ltd. stock has broken out of a 12-week, 15% deep Consolidation Base 3-weeks ago. The current price is 6% away from the ideal buy price of INR 6071, which slightly extended for a CANSLIM investor. However, an aggressive investor can still get on board at the current price.
The stock has an excellent EPS Rank of 81, which indicates consistency in earnings. The earnings and sales for the stock have grown by 36% and 11%, respectively over the past three years. Its 3-years earnings stability is 8, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 22% and 13%, respectively. The 5-years earnings stability is 13. The return on equity for the last reported year is 21%.
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 11.34% away from the 10-week moving average.
In the last twelve months, Srf Ltd. has rallied nearly 72.7% as compared to 51.1% 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 Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the last five weeks. The overall long term trend of the line is also trending upward. If Srf Ltd. can maintain this outperformance, it could make sense as a CANSLIM trade.
Srf Ltd. stock has a strong institutional support. The Accumulation/Distribution Rating of ‘A-‘ represents heavy institutional buying over the past 13 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.
The current price of Srf Ltd. is -1% off from its 52-week high price and 95% above its 52-week low price. The stock belongs to the industry group of Chemicals-Specialty, which is exhibiting excellent strength in the current market environment. The current industry group rank is 39.
The stock appears on our idea lists: Trend Template – 5 Months.