Investment Call/Positional Cash Call
WATERBASE LTD
Hello everyone.Lets talk about a stock which I have invested 500 shares around 87 and now trading around 147.From consumer food sector the stock is name is Waterbase Ltd.I am Holding for 200+ Targets.Let us talk about its immediate fundamentals.Company has market Cap of Rs 540.45 crore and EPS of 4.42.Its Book Value/Share is 32 and has Face Value of 10.It has a Dividend Yield of 0.71.Stock (P/E) is 33.35 is as compared to Industry(P/E):55.03 and has Qualified Foreign Investors of around 1.57% in the company.
Talking about the technicals of the stock currently it has Relative strength index of 63.17 and increasing indicate that stock is going towards an overbought zone and may remain in it as volumes have started coming in the stock. MACD (26 Days,12 Days) of 3.73 with a positive crossover with EMA (9 Days) of 3.21 resulting in a positive divergence of 0.52 indicate that an upward trend is surely to persist for short term as market improves.Stock is moving in rising channel wedge candlestick pattern and breakout if sustained will take stock towards 176--200+ levels.On Ichimoku cloud stock is looking highly bullish and on careful analysis stock has positively breached 9 day ichimoku conversion base line of 141.50 and seems to be sustaining it therefore indicating an bullish trend ahead.
Stock has multibagger potential in long term as yearly net profit may soon see double digit rise as company is expected to post outstanding FY 18-03 annual result.(See latest Quarterly results-FY 2017-06 result).If resistance of (175--170) is positively breached and sustained and consecutive closes around (175--170) levels and if not breached negatively then we may see stock testing 200+ within two to three months time.
About The company:The Waterbase Ltd., established in 1993, is a leading manufacturer and exporter of prawn feed, shrimp, and crab & fish processing machinery. Waterbase is promoted by the ‘Karam Chand Thapar (KCT) Group’, a highly diversified portfolio of businesses with interests in sectors ranging from coal, infrastructure, real estate, manufacturing to renewable energy. Founded in 1929 by the late Karam Chand Thapar, the KCT Group has consistently striven to provide the highest level of service to international and domestic clients and Waterbase is committed to not only continuing that legacy, but building on it. Waterbase exports shrimps in different forms to quality conscious markets of Japan, USA and Europe IQF, Block Frozen and Cooked. The company’s processing plant is FDA listed, EU approved and processing is as per HACCP guidelines. It is the Waterbase’s mission to provide the highest level of customer service and satisfaction by promoting sustainable aqua-culture development in conjunction with long-term eco-friendly practices. Today, shrimp farming continues to expand in India. With rapidly increasing demands many companies now have expanded to other coastal states like Orissa and West Bengal on the east coast and Gujarat on the west coast and in the south to Andhra Pradesh and Tamil Nadu..
Buy Zone:145--130 Strategy--(Buy on DIP)
Crucial Resistance Zone: 175--170
Immediate Resistance: 155
First Support zones :135--130
Second Support zones:115
Targets 175--200+
More will update soon!!
