FLAG AND POLE BREAKOUT- PERMANENT MAGNETS LTD

2021年6月23日

PML has given Flag and pole breakout on weekly charts. Ideal time horizon for tgt of Rs 500 should be 5-8 weeks, giving a potential upside of 35-40% from CMP 350-360.
The stock seems to be a good investment bet and can be accumulated between 325-350 levels.
The setup will be invalid if it closes below 280 DCB.

Permanent Magnets is one of the flagship Companies of Taparia Group, Mumbai and one of the leading manufacturers of Alnico Cast Magnets and Yoke Assemblies, Parts and accessories of electricity meters in the world. PML has started with supplies of Gas meters parts and accessories.

The main driver of ROE trend over last 10 years is Net Profit Margin
Company has made significant capex in last 3 years which might be affecting it's ROCE and ROE

Company has a lot of operating leverage. Increase in sales can result in disproportionate increase in operating income
ROE
Latest 29.91%
3yr Average 34.62%
5yr Average 24.18%

ROCE
Latest 38.99%
3yr Average 46.52%
5yr Average 35.03%

NET PROFIT MARGIN
Latest 13.44%
3yr Average 10.51%
5yr Average 6.91%

DEBT TO EQUITY
Latest 0.04
3yr Average 0.35
5yr Average 0.7