Weekend Observations 29th Oct 2023

Weekend Observations. UPL stock analysis.


RTI For Money, Lillaney

10/29/20231 min read

Top Gainer this week has been Bombay Burmah which gave a return of 23.32%. Stock looks very extended on the charts. Fundamentally the stock is ok but seems overpriced and is rising because it is selling some of its assets and not because of expected future growth.

There was a correction in the markets last week and it was a good time to initiate some positions at beaten down prices. Following is the position as of now.

New 52 week high - 018 vs 031 last week. Out of these 04 are large cap and 14 mid cap.

New 52 week lows - 008 vs 004 last week. Out of these 02 are large cap and 06 mid cap.

Near 52 week high - 138 vs 228 last week. Out of these 69 are large cap and 69 mid cap.

Near 52 week low - 045 vs 036 last week. Out of these 19 are large cap and 26 mid cap.

From the above it shows the trend is more -ve than previous week with midcaps taking the majority of the hit.

The 52 week low list has 2 large caps which I see as follows:

UPL : P/E of 15 and company’s EPS has doubled in the last 4 years but has been stagnant since last year. Would be a good stock to watch and add if it corrects more in the coming weeks / months. Stock has fallen 35% from its top in June 21 and is trading at levels which were last seen in Feb 21 which means it is at a more than a 2.5 year low. The concern is that it reported an EPS drop of almost 85- 90% in the June quarter, so we need to see how the company reports its results in the coming few quarters and years before we initiate a position in the stock.

Adani Gas : P/E of more than 100. Ignore.

Please consult your financial advisor before investing. The above are just my views.

What are your weekend observations?

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