This stock has been consistently showing positive trend and an accumulative pattern across last 2 years . On a larger time frame the chart shows a typical cup and handle pattern indicating long term breakout which could last for several weeks.
Due to recent anti dumping duty in Europe against external players leading to setting of minimum prices for electrical steel from Japan, China, Russia, South Korea and the United States for five years , local players like TATA STEEL EUROPE under whose R&D this company operates will surely benefit from this. Another factor of supply chain shocks across the globe specially for tin plate based containers will further bolster the demand for this company.
Pointers for our recommendation :
- Dec 2021 – Highest ever top and bottom line in last 3 years
- 89% annual sales growth , 200% EPS growth 376% Annual Operational Cash-flow growth
- Negative growth in Cash for financing indicating aggressive repayment , making company almost debt free.
- Increased FII holding , Consistent promoter holding with no pledge
- Cash flow is being deployed aggressively resulting in over 18% ROCE
Stock Name : Tin Plate | Recommendation : Buy at 352 | Target 1 : 418 & Target 2 : 490 | Time Frame : 1 month to 4 months
Tinplate Company of India Limited (TCIL) is a producer of tin coated and tin free steel sheets in India. It is a Subsidiary of Tata Steel Limited. The tinplate manufactured by the co is used for packaging of edible oil, paints & chemicals, processed foods, battery etc.
Below chart shows progressive accumulation pattern
Below chart shows multi year breakout with extremely strong fundamentals