Good Opportunity in Himadri Speciality Chemical Ltd.

Himadri Speciality, one of the strong contender for the short to long term. It's been in a long consolidation zone from 2020 to 2021. Before that, it had been in a downtrend for almost 2 years.

The all-time high was 196.80 in Jan 2018 and since then it was forming lower lows and lower highs.

After a long consolidation price recently broke its resistance trend line with good momentum and came out of the consolidation phase.

The buying volumes have been very high in the last few months. That is the indication of strong buying at the bottom of the trend.

This consolidation is part of a long-term accumulation of the stock.

We have seen strong momentum in the OBV that signals a strong buying interest has been going on in this stock.

The breakout of this consolidation phase will lead the stock in a new phase. In this phase, we will see a good rally in the short to long term.

Technically Stock is looking good for the short to long term.

On another side, the fundamentals of the company are getting improved.

1) The revenues have been getting increased for last 2 quarters.

2) The book value of the stock is getting increased for the last 2 years. Indication of increase in reserves and surplus.

3) The price to book value is attractive among the pears. P/B= 1.44

4) The PE of the Chemical Industry is around 65. But Himadri has a PE of just 26. This is the lowest PE in the industry among its peers.

The low PE and Low PB signify that the stock is trading at a very attractive price. The stocks of the Chemical Industry have outperformed for few years. But Himadri is the only stock that has not performed with the industry.

5) The PEG Ratio (Price to Earnings Growth Ratio) is 0.41, which is the lowest among the pears.

6) Price to sales ratio is 1.69 and this is also the lowest among the peers.

These two ratios are the indication that the stock is not getting enough price that it should have.

According to my analysis, the stock has the potential to perform in the next few quarters.

The levels I am expecting are 100 and 150. It may take time.