NELCAST
Hello everyone.Lets talk about a stock which I have invested 100 shares around 70 and now trading around 83.From casting and forging sector or metal industry of India ,the stock is name is NELCAST.I am Holding for 130--150+ Targets.Let us talk about its immediate fundamentals.-Stock has market cap of Rs 722.98 crore and EPS of 3.91 with Book Value/Share of 37.89 and a Face Value of 2.Stock has Dividend Yield of 1.08% and Dividend percentage of 45%.It has Stock (P/E) of 21.27 as compared to Industry(P/E) of 28.32. Nelcast has Qualified Foreign Investors holding in stock about 0.15%.
Technically it has Relative strength index of 52.85 and increasing indicate that stock is going towards an overbought zone and trying to improve its trend.RSI of 60 will bring more buyers volumes in stocks.MACD (26 Days,12 Days) of -0.67 and decreasing also suggest that a positive breakout is ahead and one will see more sharp upside move if MACD gives a positive divergence.Stock is moving in an simple upside pattern showing a candlestick symmetry on 6 months chart.If this mirror pattern continues then one may see more upside toward 92 before start of a new rally with long buildup being taken around 82--92 mark.On Ichimoku cloud stock is looking highly bullish and on careful analysis stock has positively breached 9 day ichimoku conversion base line of 82 and if this level is sustained and consecutive closes above 82 will surely make a case for upside move towards 100 mark .
Conclusion:Stock has multibagger potential in long term .More importantly government steps like imposing anti-dumping duty has been taken positively by the industry and since then we have seen a strong upside move in most the metal stocks .On careful analysis of yearly earnings and quarterly earnings we have seen stock improve its margins with a comfortable 20%--30% rise indicating good earning story ahead.If immedaite resistance of (88--92) is positively breached and sustained and consecutive closes around (88--92) levels takes place and if not breached negatively then we may see stock testing 130--150+ within two to three months time.
Technically it has Relative strength index of 52.85 and increasing indicate that stock is going towards an overbought zone and trying to improve its trend.RSI of 60 will bring more buyers volumes in stocks.MACD (26 Days,12 Days) of -0.67 and decreasing also suggest that a positive breakout is ahead and one will see more sharp upside move if MACD gives a positive divergence.Stock is moving in an simple upside pattern showing a candlestick symmetry on 6 months chart.If this mirror pattern continues then one may see more upside toward 92 before start of a new rally with long buildup being taken around 82--92 mark.On Ichimoku cloud stock is looking highly bullish and on careful analysis stock has positively breached 9 day ichimoku conversion base line of 82 and if this level is sustained and consecutive closes above 82 will surely make a case for upside move towards 100 mark .
Conclusion:Stock has multibagger potential in long term .More importantly government steps like imposing anti-dumping duty has been taken positively by the industry and since then we have seen a strong upside move in most the metal stocks .On careful analysis of yearly earnings and quarterly earnings we have seen stock improve its margins with a comfortable 20%--30% rise indicating good earning story ahead.If immedaite resistance of (88--92) is positively breached and sustained and consecutive closes around (88--92) levels takes place and if not breached negatively then we may see stock testing 130--150+ within two to three months time.
ABOUT COMPANY
Established in 1985,
Nelcast has since been a significant and diligent participant in the ferrous casting
industry, producing superior quality castings for many an industry. Nelcast has
shown an astounding growth rate, growing to about 150 times its original size
to reach its current capacity of 150,000 MT. Catering to the Commercial Vehicle Industry since 1985 and the Tractor industry
since 1988, Nelcast has diversified into various other industries to
increasingly fulfill their casting needs. Today, Nelcast is one of India's
largest suppliers of the finest ductile iron and grey iron castings ranging
from 0.5 Kg to 260 Kg in weight. Climbing its way up the ladder of competition,
Nelcast's focus continues to be on meeting international standards of quality
at competitive prices.Given the exacting production processes and the distinct identities and attributes
of the final product, the Company moved towards accordance with International
Standards. In 1994, the Company was first recognized with the ISO 9002
certification. The year 2001 saw Nelcast and its commitment to quality approved
and certified to QS 9000 standards. Nelcast's dedication to quality systems has
again been acknowledged with the TS 16949 accreditation in 2005.Nelcast has also been awarded with the ISO 14001 & ISO 18001
certifications in 2010 in recognition of its commitment to the Environment as
well as Health & Safety.Despite its high degree of documented
certification, Nelcast continues to nourish its grass root principles of
continually maintaining high standards of precision and quality. Nelcast
currently supplies components to a wide spectrum of customers and is committed
to satisfy the varying and diverse customer requirements. Having been
accustomed to variety and challenges Nelcast is incessantly on the look out for
even more exacting products.
Buy Zone:82--78 Strategy--(Buy on DIP)
Crucial Resistance Zone: 88--92
Immediate Resistance: 88--92
First Support zones :78
Second Support zones:68
Targets 130--150+
MORE WILL UPDATE SOON!!
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