Hindustan Copper Ltd.
Breakout stock: breakout happens after 8 years. stock to buy for multifold return.
1. HCL is engaged in various processes right from copper mining to the final stage of converting copper into saleable products.
2. Company has reduced debt; Debt to equity is 0.54%.
3. Debtor days have improved from 47.77 to 34.27 days; it means co. improves its debtor payment cycle.
4. Stock is trading at 7.44 times its book value.
5. The company has delivered a low sales growth of 10.76% over past 5 years.
6. Company has a low return on equity of -8.04% for last 3 years.
7. Promoter holding has decreased over last 3 years: -9.91% because of government rule of holding.
1. Stock gives strong breakout of 110 levels on monthly chart after 8 years.
2. Volume is also increasing on monthly chart.
3. Monthly and weekly RSI traded above 55 level which means long term buyer are there.
4. True strength indicator is traded above '0' line on all time frame.
5. Stock follows the trend line on daily chart.
6. Stock is trade above 20, 50 DMA.
What to do?
According to me, Fundamentals of the company are not so good from few past years, but after March 2020 Company is making good profit quarter on quarter. as we see sales is also increasing. So we can bet on future growth.
Technically stock gives strong breakout with increasing volume on long term chart and sustain near previous resistance at 110. It can give good return to its investors.
For short traders: SL=121 and Target=159.
For medium term traders: SL=108 and target= 200.
If you have this stock then doesn’t panic in small correction. You can add more or if you don't have this stock then this is good time to enter. But please strictly follow the stop loss as per your trading view.
Disclaimer: I am not SEBI registered. 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 investing and trading.
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