Short call on manali petrochemicals

2021年12月29日

Head and shoulder pattern is formed with base line acting as resistance to the further movement

2022年3月6日

註釋

Manali Petrochem is involved in the business activities of Manufacture of plastic in primary forms (includes amino-resins, polyurethanes
etc.).
Fundamentals
Company’s has a Total operating revenue of Rs. 1,620.82 Cr. on a trailing 12-month basis. An annual revenue growth of 27% is outstanding, Pre-tax margin of 26% is great, ROE of 29% is exceptional. The company is debt free and has a strong balance sheet enabling it to report stable earnings growth across business cycles.
Technical
The stock has an EPS Rank of 99 which is a GREAT score indicating consistency in earnings, a RS Rating of 43 which is POOR indicating the underperformance as compared to other stocks
Along with that I have also marked significant resistance and support lines on the chart

Conclusion : Overall, the stock is lagging behind in some of the technical parameters, but great earnings make it a stock to examine in more detail