Cosmo Films a Gem for the Portfolio

Cosmo Films: This stock previously has been in the uptrend. At the end of the uptrend, it has got consolidated for few months.

This consolidation has been unfolded in the form of the triangle pattern. We can easily identify what has been happening in this consolidation phase.

In general, a consolidation phase may be an accumulation or a distribution phase. Without volumes, it can not be identified whether it is an accumulation or a distribution phase. Here volumes are indicating that this phase is an accumulation phase and the trend is going to continue. Just look at the volumes. In this phase when the market is falling the volumes had been declined, indicating not so strong fall and when the market is rising the volumes are increasing drastically. Now, what do these consolidations really mean in reality? Have you played with the spring, when you squeeze the spring, it collects the energy into it and when you release it jumps. The same thing happens in the market. When any stock gets consolidated it tries to store the energy so that it can move forward in either direction. Same thing happened in this stock. Now, look at today's moment. Look at the strength of the candle. Big body, high volumes, and high percentage gain. Not only on Technical also the Fundamentals are also so strong. 1. Company with high TTM EPS Growth

2. Strong Annual EPS Growth

3. Effectively using its capital to generate profit - RoCE improving in last 2 years

4. Growth in Net Profit with increasing Profit Margin (QoQ)

5. Growth in Quarterly Net Profit with increasing Profit Margin (YoY)

6. Company reducing Debt

7. Increasing profits every quarter for the past 3 quarters

8. Increasing Revenue every quarter for the past 2 quarters

9. Strong cash-generating ability from core business - Improving Cash Flow from operation for last 2 years

10. Book Value per share Improving for last 2 years

11. Market Price trading around the Book Value 415

12 Attractive Price to Book Value of 1.24 with strong fundamentals.

13. High EPS 86.21 and Low PE 5.76 than Industry PE of 8.68.

14. Company with Zero Promoter Pledge

15. Recent Results: Growth in Operating Profit with an increase in operating margins (YoY)

16. Companies with rising net profit margins - quarterly as well as TTM basis

In short to long term I am expecting 680-700 levels in this stock.