New Dimond to Add in the Portfolio "Tinplate Company of India Ltd"

The Tinplate Company of India Limited (TCIL) is a subsidiary of Tata Steel Ltd, which has a 74.96 percent stake in it. India’s leading tinplate producer, TCIL offers its customers consistently high-quality products that meet the most stringent requirements of customers.

TCIL has a larger share of the domestic tinplate market. It caters to 74 percent of the prime tinplate market and ~43 percent of the overall domestic market.

TCIL exports ~20-25% of its products to different geographies across the world, of which South East Asia, Middle East, and select regions of Europe are key export markets.

List of products containing tin.

» All electrical products (toys, phones, computers, audio, GPS, appliances, etc.)

» Lighting, including seasonal light

» Jewellery, watches

» Canned food (e.g. coating for steel cans)

» Decorative crafts

» Eyeglasses, lenses

» Sports/fitness equipment

» Power tools

» Plastics

» Automotive parts (e.g. brake pads)

» PVC

» Buckles, fasteners, zippers, buttons

» Metallicized yarns

Fundamental Analysis.

1) Company with high TTM EPS Growth.

2) Growth in Net Profit with increasing Profit Margin (QoQ)

3) Growth in Quarterly Net Profit with increasing Profit Margin (YoY)

4) Company with No Debt

5) Company with Zero Promoter Pledge

6) Turnaround companies- loss to profit QoQ

7) Stock is trading at high TTM PE in the industry. Indicating the investor's interest has been increasing in this company.

The quarter result is expected to be announced on 20th Jan. This result will give the next direction to the stock as well.

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

From 2018 to 2020 it has been in the down tren.

It had made its all-time high of 324 in 2018 and since then it has never broken that level and continuously formed a lower low and lower high structure.

In 2020 it has made the low of 55.65 and its been around 9 months and that low has not been touched and stock is forming a higher low structure. The previous high also has been broken. This new structure is the indication of the new trend.

The next important thing that needs to be considered is a bullish chart pattern. At the bottom, this stock has formed an Inverted Head and Shoulder. This Inverted Head and Shoulder is a bullish reversal pattern.

The Inverted Head and Shoulder is formed at the time of the accumulation phase of the market. We can say that when the accumulation phase of the market comes it gets unfold in various chart patterns and the Inverted Head and Shoulder is one of them.

Now, look at the volumes. The volume itself indicating the behavior of the investors.

Every time the volumes are rising when there s buying in the stock and when the market falls the volumes get dries up.

This signifies that the investors are buying the stock in good quantity and selling very low quantity.

The rising OBV also indicates that the stock has been accumulating in this phase.

2 Weeks earlier price has given the breakout of the neckline with good volumes. Now the new phase of the market has been starting.

200EMA has also been breached.

The stock price momentum is very strong and technically the stock is looking very strong.

So the stock is looking good in both prospective technically as well as fundamentally that indicates that, the stock has the potential to continue its journey to a new high.