Short call on manali petrochemicals

29 de dez. de 2021

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

6 de mar. de 2022

Nota

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