Graphite India: Positive Divergence - Investment (3)

12 Jun 2019

Fundamentally: Strong and Undervalued
P/E: 2.38
BV: 274
P/BV: 1.54
Debt to Equity: 0.04
Consistent profit growth of 51% for last five years.
Stock shall move upto 2-3 times of it book value, indicating a price range of 550-750 in coming year ahead.

Technically: Recovery from downtrend
Positive Divergence observed on the chart, indicating an upside from current levels to target of 600-700, with SL 400.

12 Jun 2019

Nota

Chart indicating 600-700 range target, which may provide more than 50% returns.

20 Jun 2019

Nota

Today, Market surprises and teaches new lesson.

Today, undervalued stocks plunges 5-10% whereas companies near to bankrupt stocks rose up by 10-20%.

Now, as far as the chart concern,

Today, it gapped down and went near to the previous gap, which may now be acting as a strong support. The stock may further dip down to 340-350 to fill up previous gap and then take support to further move up. I shall update the chart after tomorrow's action.

It is a good stock with undervalued fundamentals and it is safe to hold in volatile market. I have full conviction that It shall get to its market value (550-600) soon.



Thanks