Gujarat Alkalies breakout, pullback and bounce

2022年3月31日

1. Buy or Sell at your own risk
2. Don't risk more than 1%-2% of your capital as stop loss
3. Position Size formula:- Stop Loss Amount/(Buy Price-Initial Stop Loss Price)
4. Sell on initial stop loss hit or close below daily supertrend (for short term traders) or close below weekly supertrend (for long term investors)
5. Some other ways to sell stocks can be
a. 25% or 50% up in three weeks or less
b. Largest weekly price spread
c. Exhaustion gaps
d. Heavy daily volume without further upside
e. Largest one day price drop

after a quarterly sales growth of 65%, quarterly profit growth of 501%, TTM sales growth of 38% and TTM profit growth of 161%, GUJALKALI gave a high volume breakout on 28th March 2022 after a consolidation since October 2021. It pulled back and after taking a support at previous resistance zone bounced back today. It is a buy with a stop just below Rs.810.

other fundamentals: -

The company is almost debt free.
Stock is trading at 1.17 times its book value.
Company has been maintaining a healthy dividend payout of 20.46%.
Debtor days improved from 60 in 2018 to 43 in 2021.
Debt to equity at 0.11 (less than 1 is good), Interest Coverage at 43.3 (greater than 3 is good).