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Monday, 19 June 2017

My Portfolio: Stock 2: Bought Glenmark Pharmaceuticals Ltd. on Fundamental basis

Hi, Today bought GLENMARK: Glenmark Pharmaceuticals Ltd., 5 shares @ 635,  for Investment purpose, So total value approx 3000 rupees or 3K



Will add more next month or as per chart.

This I bought on Fundamental basis and entry  made on technical basis.

That's Y i am posting this on "Fundamentals" section

So what exact fundamentals I seen? Here given below ...!

(Ratios are TTM)

Positive

1. ROE: 25+ (Positive YoY)

2. P/e: 16 (Less compared to YoY due to cmp)

3. Debt/equity: below 0.5

4. P/bv = 4 (Although higher but equal compared to peers and lowest historically)

5. PEG: 0.8

6. Pledged shares: 0

7. Dividend : Regular

8. Share Capital: Less compared to PAT so profit sharing will be less

9. Long term borrowing: Zero

10. Asset : Increase YoY

11. Reserves: Increase YoY

12. Five ANDA approval from last one month

13. All active mutual fund houses increased their holding

Negative:

1. Drastic fall in one month

2. S&P global credit rating stable to negative

So on seeing ROE and Financial Performance YoY, Zero Long term Borrowings, New product Aprovals, Increase of Assets and Reserves, I think this stock can give good returns.

more about Glenmark you can get from below link.

GLENMARK Official Site

So what exactly made my entry Point?  To understand this lets C below chart.

 

Above weekly Chart shown a steep correction and took support@ Fibonacci Levels

Lets look day chart a little closer.



In day Charts, It took support of Fibonacci Level and consolidating near level from 10-12 Sessions.

So its the best time for entry, moreover if the level break, more qty can be added at further levels.

Conclusion:  Point to remember

1. The selection is on fundamental basis not on technical basis
2. Only technicals used to time the entry
3. Bought 30% qty only, will be added more on future scenarios
4. No SL as this is fundamental call and will be added more on dips
5. Positions will be closed only when there is change in company policy or fundamentals



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