Associated Alcohols & Breweries Ltd.
Fundamental views:
1. This is the one of the largest distilleries in India.
2. Stock P/E is 14 where as industry P/E is 43.
3. Company is almost debt free.
4. Company has delivered good profit growth of 31.63% CAGR over last 5 years.
5. Company has a good return on equity (ROE) track record: 3 Years ROE 26.08%.
6. P/B ratio is 3.32.
7. Company shows 56 cr. in other investing items in their cash flow which is doubtful.
8. Promoters holding is 58%
9. FII increasing their stake in company.
10. ROCE is above 30% from the last 3 years.
Technical views:
1. On monthly chart stock is in strong uptrend.
2. Strong corrected 30% from their all time high.
3. Weekly and daily RSI traded between the 40-60 range.
4. True strength indicator is below 0 line on daily chart.
5. Stock is taking support on 200 DMA.
so according to me this stock has strong fundamentals and it is undervalued. technically stock is weak on daily chart it breaks the previous support of 510-20 now it resist there. it may go up to the level of 460 in near term. but 400-410 range is still open so keep it in mind it may go there also. 400 is the best level to enter this stock for long term if fundamental will not change.
DISCLAIMER: This is my personal view only for educational purpose. i might have this stock in my portfolio. please do research your own or consult with your financial advisor before act on this.
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