Marico Ltd.
MARICO : Marico Ltd. has
given a close at 250.85. After almost a month’s consolidating and a range bound
movement, this stock is trying to break out again. This stock is in a
continuous up trend since past few years. This stock looks very strong
technically. Trend line break out is clearly visible in RSI. In price also we
can see a range break out prominently. As wealways prefer to take a chance to
initiate a small position in any break out / break down, as per our BTS ( Break
out Trading System ) one may initiate a long position in this stock for the
targets of 562 & 575. A strict & closing basis Stop Loss must be
maintained at 538.
Revenue of this stock has gone up on QoQ basis from
1177.47 to 1257.29. Net Profit has jumped by almost 90% as compared to the
previous quarter. EPS is almost at par on QoQ basis. Operating Profit Margin
& Net Profit Margin has gone up substantially by 60% & 75% according.
Promoters are holding almost 60% of total equity. Overall a good company to
invest for a small period and one may gain at least 8% to 10% kind of
gain in a short period of time.
Marico
Ltd. has reduced the debt substantially. The company has a very good Return On
Equity, ( ROE ) track record: 3 years ROE is at 29.06%. Moreover, the company
is maintaining a healthy dividend payout of 32.59%. in case of sustaining above
our second target a further up move is also possible for higher levels. keeping
the quantity as per the loss bearing appetite is a key to have a strong holding
capacity. So one may focus on Buy On Dips, quantity & trail the Stop Loss
& ride the rally.
No comments:
Post a Comment