ALICON - VCP PROGRESS

CMP 621
Long suggested ONLY ABOVE 650.
Stop 590
Target Open

Technical logic:
1) Stock has been in a strong uptrend with stock above key MAs.
2) Stock has been consolidating from 52 week highs and during consolidation process has dropped 28% in the first swing, 22% in the second swing and 11% in the third swing indicating a VCP in progress along with volume contraction.

Fundamental logic:

1) Key profitability parameters witnessed steady annual growth in the last 4 quarters.

Sales / Operating Profit / Net Profit (Quarterly Y-o-Y growth).

Sep-17 Dec-17 Mar-18 Jun-18
26.21% 48.16% 43.23% 50.37%
7.94% 40.95% 48.21% 56.00%
39.91% 99.61% 68.02% 101.31%

2) Promoter holding 65%.

Note:
Debt/Equity 1.4, Mkt cap 850 cr; FF 250 cr.