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Welcome to FINSTOCK, your go-to destination for unlocking the secrets of the stock market and mastering the world of finance!
About Us:
At FINSTOCK, we're passionate about empowering you with the knowledge and insights needed to navigate the dynamic landscape of the stock market and financial markets. Whether you're a seasoned investor, a curious beginner, or someone looking to enhance their financial literacy, our channel is designed for you!
What to Expect:
In-Depth Market Analysis: Dive deep into market trends, explore economic indicators, and stay ahead of financial news to make informed investment decisions.
Risk Management and Trading Psychology: Learn how to manage risks, control emotions, and develop the right mindset for successful trading and investing.
Educational Content: Access comprehensive tutorials, guides, and educational series to enhance your understanding of financial instruments, market mechanics, and investment principles.
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LearningTranscript
00:00Hello friends, welcome back to our channel Feel Stock
00:12today we are with yet another video
00:15and in this video we will discuss some breakout stocks
00:20so before that if you see this is Bank Nifty weekly chart
00:26and as we have told in last few weeks
00:29this level is working as a resistance for Bank Nifty
00:34and with this resistance Bank Nifty is coming down in this week
00:41if you see its RSI is also coming down
00:45means selling pressure is in Bank Nifty
00:49so friends the two stocks we are discussing are breakout stocks
00:57and they are trading near breakout
01:00so we will discuss them and analyze their fundamentals
01:05and we will see how they are made
01:09so the first stock is Wellspoon Living
01:25so if you see the company has a market capitalization of 16,000 crores
01:32so this company comes in small cap to mid cap
01:38price is 166, if we see its higher is 172 and low is 95
01:46dividend yield is 0.06
01:50book value is 46.5 and price to book ratio is 3.56
01:55PE ratio is 23.9 and industry PE is 31.8
02:00so PE ratio is undervalued company
02:04if we see its debt equity is 0.58 which is in comfortable level
02:13so this company is a part of Wellspoon Group
02:20it is one of the largest home textile manufacturer in the world
02:24which is one of the largest textile manufacturer in the world
02:29the company offers a wide spectrum of home and technical textile products and flooring solutions
02:35the company has established itself as a top leader within the home textile industry over the years
02:45and continue to focus on the enabler namely innovation, branding and sustainability
02:52to consolidate its leadership position
02:55so this company is a well known group
03:01and it works in both home and technical fibers
03:06so if we see its fundamental analysis
03:11so if we see its fundamental analysis
03:17that company is trading 3.5x book value
03:21the company has delivered overseas growth of 8.2%
03:25company has low return on equity 12.1%
03:28and dividend payout 2.95% last year
03:31if we see its competitors
03:34Raymonde is a huge company and right after that Wellspoon Liberty
03:39and then there is Garwala which is a huge competitor
03:42If we see its financial statement, then in 2013, its sales was 3618 crores, which is now 9679 crores, almost three times its sales has increased in 10 years, which is a good thing.
03:58Operating profit margin was 16%, which is now around 14%, which is maintained around the stable operating profit margin.
04:08Net profit has increased from 225 crores to 673 crores, which is almost three times cash plus.
04:20If we see its reserves, then it has a reserve of 4419 crores and its borrowings are 2632 crores.
04:32So, if the reserves are more, then it is a very good thing that if the borrowings are less and the reserves are more, then it is a good thing that the company has a lot of cash available.
04:45If we see the shareholding pattern, then the company has a promoter of 70%, FIS has 7%, BIS has 5% and the public has only 16%.
04:57So, this means it is a fundamentally good company because it has a significant stake of promoters FI and BIS and a very low stake of the public, so we can consider it as an investment opportunity.
05:10So, if we go to its chart, then we will know how we are getting a chance in it.
05:16So, this is the weekly chart of Wellspoon Living.
05:30As you can see, it is trading near the level in October 2021. I have just marked the breakout of the pole and flag pattern in it.
05:40So, according to that, we will see that it is trading near the breakout. It is a breakout level of 170.
05:48So, as soon as it comes up, we can buy it. And it is a fundamentally strong company. So, if it comes down a little bit, then we can add on to it, we can do some averaging.
06:03But averaging is also up to a certain limit. If it is a fundamentally strong stock, if it is going below 20%, then we have to book a loss once and leave.
06:16Because we don't know, as you can see from here, when this 170 came down, it came down to 64. So, even if it is a fundamentally strong company, we get to see a drawdown of around 60%.
06:33So, we have to be ready for this. And if such a situation arises, then we should book it by putting a stop loss.
06:45So, now it has come near the breakout here. And after that, if we see, then as you know, if you watch the videos, then if we mark this total level above, then the target that is coming out is 277.7.
07:01That is, we get a target of almost 62%. Which is a very good target. So, as soon as it goes above it, we will enter it. And if we have to buy a share of Rs. 1 lakh, then we will buy it for Rs. 25,000 first.
07:18And we will see if the stock is moving in our desired direction or not. And if it comes down again, then we will average it again. And then we will put a stop loss and leave it, which will be a stop loss of 10% below.
07:33And then as soon as the stock starts going up again, not coming down, then when it comes up again for the second time, then we can put our next Rs. 25,000 or Rs. 50,000 in it.
07:48We will do investment planning in this way. But if we see, then the volume is also coming out very well. If we see from the last 3-4 weeks, then the volume is more than average. Means a good big buyer is buying in it.
08:00So, we can see it in this way. Then our second stock is Crompton Grews. Crompton Grews i.e. CG. It is called CG Consumer in a short form. If someone does not get Crompton Grews, then if we see Crompton Grews in it.
08:30So, this company is Crompton Grews. It is a company worth Rs. 27,000 crores, i.e. a mid-cap company. Current price is Rs. 425. It has also eaten Rs. 442. It was low to Rs. 61. Dividend yield is 0.71. If we see the price-to-book, it is getting very expensive. The ratio is 9.1 according to the price-to-book value.
08:52The industry PE is 95 and the stock PE is 62. So, if the industry PE is more, then it looks undervalued now. The debt equity is very less. It is 0.23, which is a very good thing. Crompton Grews is a very well-known brand in India. It is almost a 75-year-old brand.
09:08We see its products in our daily use in many homes, i.e. fans, electrical appliances, etc.
09:33So, this is the level of Crompton Grews. It is trading at around Rs. 22,000 crores. It has just come above that. So, we can buy in this as well. After buying in this, the stop-loss will be below 10%. We can put a stop-loss here. It will be around Rs. 385. We can put a stop-loss there and buy it.
09:56If it goes in our desired direction, then the first target will be of 18% and the second target will be of 31%. If we buy here, then the second target is the same. We have used this. We have marked the debt above and according to this, we have come up with this target.
10:26If we put it from here, then the next target will be a very big target. Let's see how far that target comes. It came down to almost 77%. So, if we put it from here, then we get a target of almost 700.
10:48So, according to this, we can do trading or investing in this. The company is also good. So, we can see this as an investing. And see, the swing low that we get, then our stop-loss, as the swing low shifts up, we will also trail our stop-loss.
11:08So, friends, you watch our videos, but like it, share it with your friends. With this, subscribe to the channel and press the bell notification so that you will get updates of new videos immediately and you can watch them timely. So, that's all for now, friends. Thank you.