TTK Prestige for a long trade.

This stock has its EPS and RS ratings above 80 which gets us a reason for an analysis to find a possible trade on the long side. EPS Rank 85.00 and RS rank 97.46 as on 30^th Nov 2011, followed by SNG 83.45, ADR 73.70, Fund sponsorship B & Industry group rank E-.

TTK Prestige, belongs to the Domestic Appliances group which lagging down in the industry group order, a rating of E- puts the industry at the lowest order of ranking. Fund sponsorship rank is B which is in the 61-80% funds sponsorship band, the latest monthly report show good accumulation by funds. Among the 12 fund schemes holding the stock 5 were sellers which were marginal while, the rest 7 have added their holdings. Among them HDFC Mid Cap opportunities fund has added above 41500 shores to its already existing holdings. The stock has 30% of its capital in free float which puts lesser number of shares in the hands of the public to hold. Accumulation is being done at a slow pace; there are chances for some more days of sideways movement.

The company is managing to have double digit NPM growth which is still at the lower end and needs improvement. Sales growth was robust at 51.85% and EPS growth at 54.30% against the same quarter of the previous year. With the Q2 result doing very badly on the growth front almost for whole of the economy, the growth percentages achieved by TTK Prestige puts it above the rest of the poor performers.

Technically the stock is in the correction mode going into sideways moves for the past 3 months which has now formed a good pivot at 2900 levels. Weekly MACD histogram has retraced a good bullish divergence while the monthly trend is bullish and very strong. Long trades can be established on pivot break, if it happens with high volumes, which at present is getting lower on the base formation, it will add more strength to the trade. While most of the prominent stocks in the market have corrected more than 40% from their high’s TTK Prestige has been able to maintain at 16.60% off high at the time of this writing. There are higher chances of the stock recording further new highs in the next run.