Bullish Reversal on the HorizonThis chart for Treet Battery Limited (TBL) shows a potential bullish reversal after a downtrend:
- Bullish Candlestick Pattern : A Doji followed by a Bullish Engulfing indicates a possible upward reversal.
- Support at PKR 16.00 : Price is holding this level.
- Resistance Levels : Key resistances at PKR 18.70 and PKR 19.71.
- RSI Divergence : A bullish divergence with RSI at 33.73 (near oversold), signaling potential upward momentum.
If the support holds, the stock may move toward the PKR 18.70–19.71 resistance zone.
TBL trade ideas
TBL - treet batteries should be considered for investment Treet Batteries Limited (TBL) manufactures and supplies a variety of batteries including lead-acid, lithium and nickel-based batteries. The company is a subsidiary of Treet Corporation Limited (TCL) and operates both locally and internationally.
Key Financial Ratios
Gross Profit Margin: 19.9%
Operating Profit Margin: 9.2%
Net Profit Margin: -5.5%
Risks:
High Financing Costs - 70% increase in financial expenses impacting net profit.
Market Conditions - Economic and political instability affecting consumer spending and sales volume.
Opporunity:
The financing cost should go down with lower interest rate environment and rescheduling of debt. Such a scenario would increase the attractiveness for long term investment.
Despite the challenges of high financing costs and a net loss, the significant increase in gross and operating profits indicates effective management and operational efficiency. However, the high debt levels and cash flow challenges need to be closely monitored.
Technical:
Support zone is 22.5
