RACLGEARTECH - VCP pattern observed

2018年8月25日

#RACLGEAR
BSE listed
Long suggested above 73.
Stop 65
Target Open

Logic :
#VCP
Volatility contraction pattern
A TO B 43%
C TO D 23%
E TO F 13%

Fundamentals

Qn-4 Qn-3 Qn-2 Qn-1
Sales 13.1% 18.7% 77.0% 53.1%
OP -0.7% -9.0% 13.7% 165.3%
NP 53.7% 45.2% 68.0% 147.7%
OPM 8.50% 8.80% 14.76% 13.36%
NPM 3.23% 4.68% 10.71% 4.20%

Positives -

EPS has been on an exponential grwoth for the last 4 quarters.

Negatives -

Debt to Equity 0.82
Mkt cap Rs 70 cr
Promoter holding 48% (15% pledged; 33% unpledged)

HIGH RISK INVESTMENT. HENCE PLEASE ENSURE YOUR POSITION SIZE IS AS PER YOUR RISK APPETITE

POSITION SIZE CALCULATION:
Eg : Total Capital allocated for trading stocks : Rs 10 lacs
Risk appetite : 0.5% of Total trading capital = Rs 5,000
Entry price 73
Stop 66
Risk planned in this stock = Rs 7
Position size 5000 / 7 = 714 (Around 710 to 720)
So when 715 stocks are bought and if price reaches the stop of 66, the loss is Rs 5000 which is the risk accepted.