Biocon | 175% returns | 7-year consolidation breakout
BIOCON
Monthly time frame
Breakout from 7-year consolidation
Stock riding above 20-, 50- & 200-month moving averages
RSI > 60, signaling bullish momentum
MACD crossover done and is above the 0 line, signaling bullish momentum
Weekly time frame
Stock has broken out of the orange trend line resistance after retest
Stock riding above 20-, 50- & 200-month moving averages
Golden crossover approaching (50WMA cross 200DMA)
RSI > 55, signaling bullish momentum
MACD above the 0 line, signaling bullish momentum
Volumes have been good since Feb 2024, implies heavy buying
Daily time frame
Stock has been in an uptrend (white dotted parallel channel) since Nov 2023
Stock in the process of making a higher low (Dow theory)
Stock riding above 20-, 50- & 200-day moving averages
RSI > 50, signalling bullish momentum
MACD is about to cross the 0 line, indicating momentum build up
Conclusion
Entry: 350
Stop Loss: 300
Target 1: 485
Target 2: 665
Target 3: 960
Fundamentals
Stock PE (27) = Industry PE (35) {Stock not overvalued compared to Industry}
Stock is only 2x book value, {Not overvalued}
Int Coverage = 3.52 {Ideally > 2}
CF Operations / EBIT = 0.86 {Ideal value > 1}
Earnings yield >= 6.19% {Ideal value > 5%}
Debt to equity = 0.82 {Ideal value < 1}
Promoter stake has remained consistent over the years > 50%
Monthly time frame
Breakout from 7-year consolidation
Stock riding above 20-, 50- & 200-month moving averages
RSI > 60, signaling bullish momentum
MACD crossover done and is above the 0 line, signaling bullish momentum
Weekly time frame
Stock has broken out of the orange trend line resistance after retest
Stock riding above 20-, 50- & 200-month moving averages
Golden crossover approaching (50WMA cross 200DMA)
RSI > 55, signaling bullish momentum
MACD above the 0 line, signaling bullish momentum
Volumes have been good since Feb 2024, implies heavy buying
Daily time frame
Stock has been in an uptrend (white dotted parallel channel) since Nov 2023
Stock in the process of making a higher low (Dow theory)
Stock riding above 20-, 50- & 200-day moving averages
RSI > 50, signalling bullish momentum
MACD is about to cross the 0 line, indicating momentum build up
Conclusion
Entry: 350
Stop Loss: 300
Target 1: 485
Target 2: 665
Target 3: 960
Fundamentals
Stock PE (27) = Industry PE (35) {Stock not overvalued compared to Industry}
Stock is only 2x book value, {Not overvalued}
Int Coverage = 3.52 {Ideally > 2}
CF Operations / EBIT = 0.86 {Ideal value > 1}
Earnings yield >= 6.19% {Ideal value > 5%}
Debt to equity = 0.82 {Ideal value < 1}
Promoter stake has remained consistent over the years > 50%
Trade active
Trade is active
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.