CMP: 1167, 2nd April 2019
Technical Opinion:
PI Industries has been in a sideways trend for the last 2 years, 2017 to 2019 forming a double bottom in the process, after being a growth stock before that. Eventually, it broke out of a nice tight 13 week base in the middle of Feb and started its vertical upmove.
Right now, it has also broken out on high weekly volumes on the 2 year double bottom pattern.
Fundamental Checks:
| Management Quality | ✓ |
| Recent Earnings growth | ✓ |
| Future earnings/trigger | ✓ |
| Low Supply (<1000 cr retail float) | x |
| Earnings are Non-Lumpy | ✓ |
| No Pledge | ✓ |
| Low D/E | ✓ |
| Positive FCF Yield | ✓ |
| Low Receivables | ✓ |
| Sector Leader | ✓ |
| Sector trend | ✓ |
| Institutional/Promoter buying | x |
| Analyst opinion | ✓ |
| Liquid Stock | ✓ |
| Disruption/Regulation proof | ✓ |
| High RoE/RoCE | ✓ |
| Chart Trend | ✓ |