Top Breakout Stocks For Trading And Investing SEP & OCT - 2024

  • 4 days ago
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Transcript
00:00Hello friends, welcome back to our channel FinStock
00:10We are with yet another breakout stock
00:14As you can see, this is Apollo Tires Ltd
00:18This company was established in 1972
00:23Its plants are in Kochi, Vadodara, Pune and Chennai
00:26Its plants are in almost 4 Indian cities
00:29This company makes tires for light trucks, passenger vehicles and farm vehicles
00:35This company has two brands
00:39One is Apollo and the other is Versteyn
00:42Versteyn is a 110-year-old European brand
00:48It is in the list of premium brands
00:52The company has spent 300 crore capex in the first half of financial year 2024
00:58which is below their target
01:00Geographical revenue is 69% from APMEA, Asia-Pacific, 28% from Europe and 4% from others
01:12Revenue is 42% from Trucks and Buses, 37% from Passenger Vehicles, 9% from Farm Vehicles, 6% from Light Trucks and 5% from others
01:23Revenue is 78% from Replacement and 22% from OEM
01:32Its distribution network is very strong
01:38Network consists of 6,700 dealers across India and 7,000 dealers across Europe
01:48It has been increasing its presence in the rural India also
01:52and increased its stores in rural areas from 1,300 in FY20 to 5,300 in just three quarters
02:03This is the analysis of this company
02:08Its fundamental analysis shows that it is a 34,000 crore company
02:13We can say that it is a mid-cap company
02:16Its current price is 545, 52.5 and 568
02:19It is trading very close to its 52.5
02:22Its industry P is 30.1 and its stock P is 20.4
02:26It is getting a little cheaper in its industry compared to its competitors
02:34Its return on equity is 13.2% and return on capital input is 16.4%
02:40Its profit growth is also 33.7% which is a very good profit growth
02:45Its face value is 1 which means that it cannot be split after this
02:52Its dividend rate is 1.1% and its equity rate is 0.35%
02:58This is the fundamental analysis of Apollo Tires
03:08Its competitors are MRM, Balkeshwar Industry, Apollo Tires, SEAT
03:15These are well-known brands as we already see in India
03:19Its profit and loss statement is 12,800 crores in 2013
03:27It is now more than double
03:31Its operating profit margin is 11% and it is maintaining 17-18%
03:38Its net profit is 612 crores and it is trading around 1600 crores
03:46As you can see, the company is consistently paying dividends which is a good thing for an investor
03:54Let's go down and see what is the shareholding pattern
04:00Its promoter has 37.36% shares, FIS has 14%, DIS has 25%
04:09It holds a very big stake and the government has 1.57% and the public has 21%
04:17Almost 80% is owned by the big people and 20% is owned by the public
04:23This is a very good thing. When big people have shares, they have confidence and that is when they hold the shares
04:30We can see that the company is doing well for both investment and trading purposes
04:40We can see that there is a boom in electric vehicles
04:45There is a boom in hybrid vehicles as well
04:50There is a lot of discussion on different fuel alternatives
05:05There is no innovation in tires
05:10Tires are made of rubber and every vehicle is going to have these tires
05:16We can bet on these companies
05:20As you can see, the consumption of India and the world is increasing
05:24There is a craze among people and people are buying new cars
05:27The consumption will keep increasing
05:30We can see that the company is going to invest in electric vehicles, petrol, diesel, hydrogen, etc.
05:40We can see that the company is going to invest in electric vehicles, petrol, diesel, hydrogen, etc.
05:44Friends, now we go to the chart
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06:01You will be updated accordingly
06:04We have just opened the weekly chart of Apollo Tires
06:09If you look at it, you will see that this chart is very good
06:15There is a continuous stock in the uptrend
06:18If you look at it, there is a continuous stock in the uptrend after the crash of COVID-19
06:24After coming here, it looks like a consolidation
06:28If we look at it, this range is January 24
06:33This stock has been in this range since January
06:39If we look at this range, it is almost 20%
06:42This stock has been trading in the range of 20% for a year
06:46If this stock comes above the upper end, which is 557 or 560
06:52If this stock comes above the upper end, which is 557 or 560
06:54Then we see a lot of potential to go up
06:57And the first target that we get according to this range breakout is 652
07:02Which will give us 17%
07:05And when this stock starts trading above 560
07:09Then the RSI will also come above 60
07:13Then a momentum will be generated in this
07:16And due to this, the stock can come up very fast
07:20If you look at it, the volume is below its average volume
07:26So we have to take care of this too
07:29If there is a good volume in this week or next week
07:32Then we will get more confidence in it
07:34And it will mean that some new big players are adding to it at this level
07:38So we have to look at it accordingly
07:41And we have to make our position above 560
07:45And the stop loss that we have to keep is 10%
07:48So if we look down 10% from here
07:50Then it will come almost around this level
07:53Which is around 500
07:55We have to keep our stop loss
07:57So our first target is 652
08:01And then as soon as this target is achieved
08:05So by using the trading stop loss method
08:09We will keep taking our stop loss up
08:11And then we will keep locking our profit in it
08:15So this was our analysis for Apollo Tires
08:19With this, we will also discuss a bonus share with you
08:25Which is called M&M Finance
08:27This is a bonus share for you
08:30Those who have seen the video so far
08:33We will discuss the analysis of this share
08:38So this stock is M&M Finance
08:43We have opened the weekly chart with you
08:45And if you can see, we have already marked this level in it
08:48So M&M Finance has reached this level on July 23
08:52That is, it has been more than a year
08:55It attained here and then went to a downtrend
08:59And now this week is trying to break this level
09:02Which is of 337
09:04We can hold the round figure of 340
09:06So if the stock goes above it
09:08So according to this range breakout
09:10The target is 25%
09:13Which is of 425
09:15And if you see, then after this also we have taken some targets
09:18Which is of almost 570
09:21Which is the target of 69%
09:23So where did we get this
09:25So for this, if you see
09:27So we will zoom in this chart
09:31So let's see
09:33The level of 2018
09:35That is, almost 6 years later
09:37This breakout will be confirmed
09:39If it starts trading above 340
09:41So friends
09:43When we see such a big long breakout
09:47So you know in that
09:49According to this range breakout
09:50Let's analyze it again
09:52So we took this level out of here
09:54Which was the low of this
09:56We projected it from here
09:58So according to that, this level comes out
10:00Which is the level around 570
10:02So according to that
10:04We see these two levels
10:06And if you see
10:08So here RSI also
10:10The level of 60
10:12Taking rest there, now again momentum is being generated
10:14Means in this
10:16And we can see the possibility of going up
10:19So the level is
10:21We have to buy above 340
10:23We have to take the first target of 415
10:25And we will get the second target of 570
10:28So we have already shown the stop loss
10:30Which is of 315
10:32So that's it for now
10:34You can also see our old videos
10:36Which will come here
10:38So thank you

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