Multi-bagger Stock Investment Pick

Its the best time of the week ,Yes its our multibagger stock selection time and today we our going to talk about a stock in which i invested 800 shares at the rate of 33 and now currently trading at Rs 49 in just 3 months time,yes the stock belongs to Finance-General sector and its name is ALANKIT LIMITED.

I am Holding for target of 70--80+

ALANKIT LIMITED

 

Alankit is looking superb in charts and if one is looking for a long term gain then surely this is a safe bet to jump on as both technically and fundamentally the stock is looking stable.Let talk about the technical aspect of the stock.

One careful analysis of the candlestick chart pattern i was already anticipating a bullish penant pattern as financial indicated me to do so.

RSI of 87 also suggest that stock is in overbought territory and we may see a bullish trend to remain in the stock till stock remain in overbought territory of 87--60.

MACD of positive divergence of 1.24 also suggest that trend is positive and will remain intact for sometime as stock has seen sharp rise in volumes which is expected to remain in the stock and this upward trend may persist for some more time before rally start to fade.

On careful analysis of stock movement in Ichomoku chart one can see that stock is comfortably above its 9 day conversion base line of 42 and this shows that stock is comfortably bullish and will remain to do so if 42 is not breached negatively.

Let us talk about the fundamentals of the stock:

Alankit Limited has shown stable results since previous quarters and on careful analysis on can see that stock is improving its earning drastically as it has already in its June 2017 and September 2017 quarters posted result of 11.30 crores  combined which is close to its previous yearly profit of Rs 13.26 crore with two quarter remaining and this clearly shows that stock will comfortably move to upper regions as it start posting its next quarterly result which is expected to be positive for the stock considering the previous years hiccups of demonetization at the previous year quarter as the same time period.

Key Fundamentals:

Market Cap:701.92 crore

EPS:0.93

Book Value:3.21

Dividend Yield:0.41

Face Value:1

Dividend Yield (%):20%

Div(%):10.00%

CONCLSION: My advice to all the viewers of the blog is to wait and watch sometime the stock movement and then  enter at a dip to make a fruitful long term position and keep adding at every dip to make a good holding in stock.Remember stock is low beta stock so one will be clearly safe from adverse price movement in times of consolidation.

Key Levels:

Immediate Support:42

Important support 38

Buy Zone 48--42

Long Term Target :70--80+

MORE WILL UPDATE SOON!!