40% UPSIDE potentialSector: Chemicals
HP Adhesives Limited is an adhesives and sealants company. Market Cap 1,117 Cr.,
Stock PE 59.8, Company is almost debt free.
CONS: Stock is trading at 7.07 times its book value
HPAL trade ideas
BUY TODAY SELL TOMORROW for 5%DON’T HAVE TIME TO MANAGE YOUR TRADES?
- Take BTST trades at 3:25 pm every day
- Try to exit by taking 4-7% profit of each trade
- SL can also be maintained as closing below the low of the breakout candle
Now, why do I prefer BTST over swing trades? The primary reason is that I have observed that 90% of the stocks give most of the movement in just 1-2 days and the rest of the time they either consolidate or fall
Trendline Breakout in HPAL
BUY TODAY SELL TOMORROW for 5%
hpallook at chart and each points is discrete.
yeaster sesion volume high at ever in stock
volume give boost stock at high level
and this volume absorbs that sentimental resistance of 100
but around 20% rally in yesterday's session was risky in trading
stock must sustain above eserady high
Thank you for trading this confirmation for the stock move above
no recommendation for buy and sell
BO RETEST IN HP ADHESIVES LTD (HPAL).Entry, Targets and Stop Loss are mentioned on the chart.
View Invalid below 440 WCB.
Disclaimer: This is for demonstration and educational purpose only. This is not buying or selling recommendations. Please consult your financial advisor before taking any trade.
HPAL - At Support - Pullback TradeI identified this stock as a probable candidate for a breakout trade (Refer to the previous post linked here)
And we did see a breakout and run up to 540-550 levels.
Now the stock has come back to the breakout level, the previous resistance area which now would serve as a support area( 455-463)
and this week a hammer-like candle is also formed in the support area, portraying a good opportunity for a pullback trade.
The structure of the stock is still very positive and this could be a great risk to reward swing to positional trade.
The initial target is recent highs i.e. 540-550 and the further target is around 600 levels.
Close below 450 would negate the trade.
HP ADHESIVESSolvent cement: 59%
Ball valves + Tapes: ~14%
Silicone Sealants: ~13%
SR Adhesive + PVA: 8%
Others (Contribution from Discontinued FRP Segment): ~6%
Entry point 398 - 400 With SL@ 347 FOR Targets mentioned in chart - Good for investment
Market Cap
₹ 725 Cr.
Current Price
₹ 394
Stock P/E
99.7
Book Value
₹ 76.9
Dividend Yield
0.00 %
ROCE
10.7 %
ROE
8.01 %
Face Value
₹ 10.0
Promoter holding
71.4 %
EPS last year
₹ 3.27
EPS latest quarter
₹ 1.37
Debt
₹ 31.9 Cr.
Pledged percentage
0.00 %
Net CF
₹ 46.8 Cr.
Price to Cash Flow
-71.1
Free Cash Flow
₹ -26.0 Cr.
Debt to equity
0.23
Volume
1,254,286
OPM last year
6.86 %
OPM 5Year
%
Reserves
₹ 123 Cr.
Price to book value
5.18
Int Coverage
4.49
HPAL Ready For Breakout HP ADHESIVES is a stock that can be another great positional pick considering the great risk-reward ratio it is offering right now.
The reason I picked this stock is that, it has been consolidating for the past 8 weeks in a tight range of approx 8-10%.
And this consolidation is happening at previous resistance around 410-460 levels, where the stock took resistance multiple times in the past.
Price Resistance
First in Jan 2022
Second on April 22
Third on Sep 22
And this time from June 22
By looking at price action, the breakout looks inevitable on the charts and stock can move fast towards 500 to 560 levels in the coming weeks which would constitute approx 20-23% return in a short span of a few weeks.
$HPALnew ipo based stock setting up nicely
support at : 400
resistance at : 422.05
keep in your watchlist wait for close above resistance to confirm the entry.
HP ADHESIVESCons :
Volume isin't in support of the confluence.
Note:
Need to wait for pullback and very good discount before entering the position. One for the watchlist
