Mphasis Ltd. stock has broken out of a 5-week, 12% deep Flat Base 4-weeks ago. However, the stock is still offering investors an opportunity to get on board as the current price is only -1% away from the ideal buy price of INR 1788.
The stock has an excellent EPS Rank of 88, which indicates consistency in earnings. The earnings and sales for the stock have grown by 18% and 15%, respectively over the past three years. Its 3-years earnings stability is 5, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 19% and 11%, respectively. The 5-years earnings stability is 4. The return on equity for the last reported year is 20%.
Mphasis Ltd. stock has a strong institutional support. The Accumulation/Distribution Rating of ‘B+’ represents heavy institutional buying over the past 13 weeks. Although the number of institutions holding the stock dropped in the last quarter, the number of shares held by the institutions increased at the same time.
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 4.17% away from the 10-week moving average.
In the last twelve months, Mphasis Ltd. has rallied nearly 140% as compared to 51.1% for the Nifty500. It has a Relative Strength Rating of 71. 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 of the stock is offering some encouraging signs. It is slowly outperforming the market in recent weeks. The overall long term trend of the line is also upward. If Mphasis Ltd. can maintain a healthy upward move, it could make sense as a CANSLIM trade.
The stock belongs to the industry group of Computer-Tech Services. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 76. The current price of Mphasis Ltd. is -4% off from its 52-week high price and 153% above its 52-week low price.
The stock appears on our idea lists: Trend Template – 5 Months.