HINDCOMPOS - INVERSE H&S, THEN CONSOLIDATION AND BREAKOUT

408
Hi All,

This idea is about Hindustan Composites Ltd

Certified developer, manufacturer & marketer of Friction Materials in India comprising Brake Lining, Clutch Facing, Disc Brake Pad, Roll Lining, Brake Block, etc. Company is also engaged in the treasury business.

Clientele

Ashok Leyland, Maharashtra State Road Transport Corporation, Eastern Railway and Southern Railway, etc. HCL is also a Tier 2 supplier of brake lining for Toyota, TATA

Technical

Price Action formed an inverse Head and Shoulder but after the formation of right shoulder could not break the neckline, instead went into consolidation.

Eventually the price broke out of the darvas box ending the consolidation and have reached the initial neckline of Inverse H&S.

If neckline is broken, it could lead to a substantial rally

Fundamentals

Market Cap
₹ 905 Cr.
Current Price
₹ 613
High / Low
₹ 650 / 347
Stock P/E
26.3
Book Value
₹ 669
Dividend Yield
0.33 %
ROCE
4.46 %
ROE
3.60 %
Face Value
₹ 5.00
Equity capital
₹ 7.38 Cr.
No. Eq. Shares
1.48
EPS
₹ 23.3
Promoter holding
75.0 %
Change in Prom Hold
0.00 %
Chg in Prom Hold 3Yr
0.00 %
Pledged percentage
0.00 %
Market Cap to Sales
3.04
Sales growth
5.30 %
PEG Ratio
2.10
EVEBITDA
17.3
Quick ratio
1.95
Trade receivables
₹ 37.3 Cr.
Sales
₹ 298 Cr.
Debt to equity
0.00
Price to book value
0.92
Free Cash Flow
₹ 3.92 Cr.
CMP / FCF
91.1

Happy Trading

Thanks,
Stock-n-Shine

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