Piramal enterprises Analysis

Piramal Enterprises (CMP - 2816.45)

Technical and Financial Analysis

Past 2 years' weekly trend

The above graph clearly shows a Wave 3 formation (Elliot Wave). With already 150+% return on Wave 1, we can expect minimum 150% on Wave 3 as well i.e. minimum target of 4300+.

All Time Monthly Trend

The monthly charts for all-time data show that PEL is still on its Wave 1 and we can expect huge return in long run if financially everything goes well!

Technically, AdaniTrans is a sound investment stock.

Coming to financial Indicators - 

The EPS grew from 21.60 (Mar 2015) to 61.49 (Mar 2016). More recently in quarterly results a fall in standalone EPS was observed when it dropped from 25.94 (Sep 2016) to 3.48 (Dec 2016) to 0.66 (Mar 2017). Though the consolidated EPS as per last quarterly results was 18.02.

The company has shown steady growth in terms of Revenue and Profit.

Negative Operational Cash Flows are a big reason for concern, which have been increasing. With its continual we can see a fall in market value of the stock.

The growth can nullify the negative operational cash flows soon, if they continue to grow. If everything goes well for the company and its performance is steady, we can expect the company to provide healthy returns in future.

The Current P/E of 38.79 as against industry's 27.80 makes it a overvalued stock.

It is to distribute dividend @ 1050% on 21-July.

With 52% shareholding resting with Promoters and 31.50% with Institutional Investors, it makes this stock a highly potential investment.

Note - I do not hold any investment in this stock! Invest at your own risk. This is just a personal analysis and cannot be taken as a guarantee for rise in prices.