Breakout Stocks Part - III | 2 Microcap Stocks | CA Rachana Ranade

"in the month of September it has definitely broken out look at the volume also volume is also good enough now which if I were to if so there are different types of Traders again some will give importance to the sloping trend line some will say no we we are much more comfortable with the horizontal support and resistance lines if anyone is giving more importance to the horizontal support and resistance lines then just breakout has happened a confirmation candle is yet to be formed why we are talking about a monthly candle right now"

"on a weekly candle you can see again similar points it was a clear cut downward sloping trend line there was a breakout and in the confirmation candle you can see a gap up and then a confirmation so again strength is what we can see here and then we can see that yes the stock is rising but currently last two three candles in kind of a sideway Trend but again look at the volume profile when the stock was consolidating or slightly going downwards no big volumes and here you can see last few candles the volume has been pretty good"

"on a daily time frame as well now if you have understood these points now let's go on to screener and try to check some very basic points for arihan Capital now if you can see here market cap problem why micro cap 1162 crores if you see Roe R fair enough 24% 29% if you see industry p is at 16 but stock p is at 15 okay so lower as compared to Industry should I be happy with that no ideally I should just go and check its fiveyear p ratio median as well now if you see your fiveyear median p is 10 but the actual P right now is what it's around 15 around 15 and fiveyear medium p is 10.5 the same problem with you know midc caps small caps same problem with micro caps that currently it seems to be overvalued"

"now if I were to go to the quarterly results definitely you can see nice numbers from 43 crores to 73 crores from 7 18 crores operating profit to 30 crores operating profit now for PBT from 15 cres to 25 crores so decent enough YY growth if you see at the yearly numbers as well sales at alltime high TTM I'm talking about of course operating profit alltime High PBT also alltime High if I were to go to the compounded sales growth profit growth let's say I'm taking a three years time frame 27 27% not bad at all"

"promoters holding has been dropping from 75% roughly to 70% roughly okay FIA participation is hardly there and uh public partic even if I were to take this on a yearly time frame it'll be a little bit more clear if you can see from 17 to 24 promoters holding has been decreasing FIS just started to you know increase in 22 23 but then again again down to 18% 1787 sorry and public holding has gone up from 25% to 30%"

"again if you see here higher lows a trend line clear breakout and Confirmation candle pending this is the month of October in which we will see whether a confirmation happens or not again you can see very nice volumes for the breakout candle"

"now if you see here weekly chart again the horizontal trend line This is the upward sloping trend line both were broken with the same cand very nice price and also volume profile is also good enough right now kind of consolidating but if you seeing in the daily time frame it's very very much in an upward channel uh uh and it has also broken out this is the breakout candle confirmation is with a gap up again good volume candle uh and you can see here it has retested Here and Now kindly in a consolidation manner"

"micro cap 1625 crores of market cap Ro R decent enough at 16 16% industry P at 40 stock P only 32 but we are Al also going to check fiveyear data fiveyear medium P 19 19 and current stock P 32 clearly overvalued if I'm comparing it with its own median P"

"if I were to talk about quarterly results top line from 244 cres to 265 crores operating profit from 22 cres to 28 cror and PBT from 17 cror to 26 cror so all in an increasing Trend YY basis okay if you see your TTM basis alltime High sales alltime not alltime high profitability Shar below alltime High profit operating profit and if I were to talk about PBT alltime High PBT as well"

"share holding pattern I'll go on yearly and you can see here promoter holding again decreased from 73.85% to 66% no holding of fi public holding has gone up from 26 to 33%"

"I have talked about the speciality entire specialty chemical space where the management of so many companies be it Ry Industries be it alky amines be polyplex all these companies managements were like you know we believe that H2 FY2 that is the second half of financial 25 could ideally be a better one."