National PeroxideThe manufacturer of Hydrogen Peroxide and Hydrogen Gas is experiencing a 90% price increase in Hydrogen Peroxide over the past two months, indicating the potential for significant short-term profit margins. Furthermore, they have demerged their main business and established a separate holding company for BBTC and Bombay Dyeing shares. Notably, the company has expanded its Hydrogen Peroxide production capacity by nearly 60%. Their primary raw material, Natural Gas, is witnessing declining prices.
From a technical perspective, the company has recently broken out of long-term monthly Gann levels and surpassed the monthly 50 SMA (Simple Moving Average). This suggests positive momentum and raises optimism for higher price targets, with Target 1 set at 2500.
NAPEROL trade ideas
NATIONAL PEROXIDE : COMPLETES WEEKLY TIME FRAME CORRECTIONNATIONAL PEEOXIDE COMPLETES BOTH TIMEWISE AND PRICEWISE CORRECTION ON WEEKLY TIMEFRAME....GO LONG FOR TARGET 6500 IN 18 MONTHS
NATIONAL PEROXIDE - A POSSIBLE HIGH PROBABILITY MULTIBAGGER4360
long suggested above 4600
Technicale rationale :
VCP in progress accompanied with volume contraction. Possible expansion in coming trading days.
Price resting at support , quarterly pivot zone.
A break above 4600-4675 zone confirms the completion of vcp breakout.
stop suggested at 4100 once long activated.
Fundamental rationale:
Fundamentals
dec 17 / mar 18 / june 18 / sep 18
Sales growth 30.85% 58.64% 53.70% 94.69%
Op. Profit growth 139.28% 247.50% 134.36% 199.18%
Net Profit growth 162.94% 621.66% 137.10% 192.74%
Operating profit
margin 45% 59% 62% 65%
Operating cash flow YoY annual growth (mar 2018) 59%
Debt to Equity : Nil
Promoter holding : 70%
National Peroxide broke out 1/1 resistanceNational Peroxide broke out 1/1 resistance. If it closes above 5052 and remains bullish for a couple of days, we may see a level of 8000+ in medium term
