Global Vectra Helicorp (CMP - 157.50)
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| Past 2 years' weekly trend |
The stock broke and sustained its resistance level at 140 and is currently being traded at 157. With this break through it is expected to touch at least 220 levels in it Wave 3.
With continuous 3 weeks of rising, it can either expect two more bullish weeks or a corrective week before a jump back.
The revenue and earnings of the company have been rising marginally but continuously over past 4 years, except in Mar 2016 where instead of rise in revenue, the profits went down due to "Other expenses".
Quarterly results have shown growth over last 3 quarters as well. The EPS rose from 1.55 to 8.84 from Dec'16 to Mar'17 quarter.
It has stable positive operational cash flows, which show even though the growth maybe small but operations are not working in a down-grade manner.
48% of the capital held by Promoters, 27 % by foreign investors and only 0.09% by intuitional investors. This reflects lack of attraction since holdings of institutional investors are too low.
For the stock to give heavy returns, the company needs to adapt a growth-oriented strategy. With a vast potential to unlock, this stock currently is not an investment worthy stock. However, long term investors may buy and hold small portion of their portfolio.
Current P/E of 9.91 is way too low than its industry's average P/E of 21.42, making it a undervalued stock in comparison to its peers. One might invest in it and book profits at 200 levels.
Note: This is just for analytical and study purpose. I do not hold any stocks of this company nor do I have any relation with this company. I am not an Registered advisor. Invest at your own risk after doing your own analysis.
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