HERITGFOOD trade ideas
HERITAGE FOOD BULLISH Short Term Liabilities: HERITGFOOD's short term assets (₹2.9B) exceed its short term liabilities (₹1.8B).
Long Term Liabilities: HERITGFOOD's short term assets (₹2.9B) exceed its long term liabilities (₹624.5M).
Debt Level: HERITGFOOD has more cash than its total debt.
Reducing Debt: HERITGFOOD's debt to equity ratio has reduced from 51% to 2.9% over the past 5 years.
Debt Coverage: HERITGFOOD's debt is well covered by operating cash flow (768.3%).
Interest Coverage: HERITGFOOD's interest payments on its debt are well covered by EBIT (54.5x coverage).
Cash Flow Coverage: With its low cash payout ratio (22.9%), HERITGFOOD's dividend payments are well covered by cash flows.
Positional Long Trade on Heritage Foods
Price and Chart Analysis -
1) Stock gave a BREAKOUT above MULTIPLE RESISTANCE ZONES 2 weeks ago.
2) Now trading and retesting near breakout level.
3) Daily Candle today was a Gravestone Doji after a downtrend, indicating possible bullish reversal hereon.
4) Zooming out, looks like a possible INVERTED HEAD & SHOULDER BREAKOUT and PULLBACK, with VOLUME CHARACTERISTICS ticking all the boxes.
Volume Analysis-
1) Breakout was supported by VERY HEAVY VOLUME.
2) Pullback towards Breakout level has been accompanied by VERY LOW or BELOW AVERAGE VOLUME ( Please see Daily Chart for the Same)
Looking good for another move upHeritage foods broke out of the channel pattern couple of days ago...even when it was moving up INSIDE the channel it was doing big volumes..it has not traded with such volumes in the past 1 year at least...a good sign.
CMP - 428.7
Target 1 - 473...( actually today also it moved up by 7%, so target 1 was 428 today, but the new target 1 is for those who wish to trade it tomorrow)
Target 2 - 562
This is not an advice to trade. Only an idea. Please do your own research first.
Heritage Foods - Momentum tradeOne of the few stocks where each dip is being got which can be noticed by the longer tails in the stock..a potentitally low risk trade might be developing here.
Long above 345.50 for a first target of 378 200WEMA..If that gets crossed even doubling the allocation might be a good idea.
SL 330.