The Tyres industry is one among the top industries in Industry group ranking today. This industry is represented by MRF, JK Tyres, Balkrishna Industries, Ceat and Good Year.Among the 6 stocks that represent this index only MRF is leading with a very strong EPS and Price Relative strength growth. MRF has an EPS ranking of 93.47% and a PRS ranking of 97, which puts the stock into the big league of super performers and so has it proved itself to be a big winner in the markets today. This stock came to buy on the daily charts at 7130 and is now quoting at 9455 after giving a new high at 10155. A clear gain of 30% plus percent in about 2 months. This stock had been a regular visitor on our Big Money Channel and the ready to take off listing.
Even now the stock has formed a pivot at 10155 and is retracing. On the weekly charts though it is trending the value zone is quite far away. But on the daily charts there is a base formation with a very high indicator strength. In volumes are above average when the stock takes off its pivot it is again a buy for new entrants and an add on to the exiting holders. This stock promises more gains in the future.
Big Money Channel lists stocks with high EPS and PRS rating along with above average volumes, tracking these stocks for potential entries pays rich dividends. We have already reported this stock when the price was at a lower level, but still this stock holds promise. One can accumulate the stock into their investment portfolio for considerable gains.
Though the profit growth on the stock is at 3 odd percent its sales increase is robust at 32% and an EPS increase in comparison with its prior quarter is above 10%. The TTM EPS has registered triple digit growth rates. Funds have been accumulating this stock in a slower phase to build up a strong portfolio, do join the band wagon of big ticket investments in this stock.
the current price of the stock is 7.13% off its 52 week lows giving it a fair chance for a pivot long trade very soon. A stock that hits new highs will continue to do so till the buying power or fundamentals fall short, and that is a long way to go from the present date.
The stock has an ROE of 26.81 which is again a plus for any stock. An ROE of above 17% renders a stock into the top category, while this stock is far ahead. PE of 63.46 has much room for move upwards. On the Industry front, EPS growth is negative because of the other stocks in the group not performing well, that will not be a concern here.
ON the technical side too this stock is trending both on the daily and the weekly charts, pull back trades are awaited in the daily based on weekly movement. With the markets correcting and the event risk holding up inthe coming week there is bound to be a nice entry opportunity in this stock. Investors cash in on this high probability trade.
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