Swift Swing Traders (Technical + Fundamental Knowledge)

DMART

4224 high made

6% movement

👉 Just a sparkle ✨ out of many fireworks 🎇 coming in near future 🙂

PCBL

4% Up now 🔥

🔅

According to the chairman, PCBL plans to invest ₹35,000 crores in the next 12-18 months and up to ₹50,000 crores over the next three years to expand capacity and enter the global specialty chemicals market, especially with Aquapharm’s acquisition.

🔅 Stock Price Estimate: Assuming the P/E remains at 33.5, the stock could rise to ₹1655 in five years, a potential 400% increase, fueled by growth in higher-margin segments.

Overall, PCBL seems well-positioned for the future, with steady demand for carbon black and specialty chemicals likely to support continued growth.

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Being part of the RP-Sanjiv Goenka Group gives them easy financial backing. They’ve shifted focus to specialty black products and also sell surplus power from their plants to balance out market fluctuations. Recently, their subsidiary Advaya Chemicals bought Aquapharm Chemicals, funded by borrowing, which expands PCBL’s product range.

PCBL’s debt-to-equity ratio is low at 0.4, but the Aquapharm acquisition could slightly impact this. They’re ramping up production in specialty chemicals, which should boost income. The goal is to smoothly integrate Aquapharm and reduce debt, key for long-term stability.

Crude oil prices and currency fluctuations can affect PCBL, but they’ve managed these risks well so far.

☝️News dated 30 July, 2024

Please take time and read this:-

Chairman Sanjiv Goenka projects that PCBL's profit could increase fivefold over the next five years, potentially reaching ₹2,400-2,500 crores, which could result in a future profit of around ₹12,250 crores. Margins are expected to improve from the current 16% to approximately 18%, driven by the focus on high-margin segments like specialty blacks and new ventures in chemicals. The group aims to achieve a market capitalization of ₹2 lakh crores within the next 30 months.

🔅 Now, let's understand what PCBL does :-

PCBL Limited, a leading carbon black producer, is India's largest and ranks seventh globally. Its products primarily serve the tyre and rubber industries, with additional applications in plastics and electrical sectors, including batteries. The shift towards electric vehicles (EVs) is expected to drive demand in the tyre segment.

PCBL can correct until 370 to 350 levels, hence investors can look out for these levels or can accumulate at very dip.

#LongTerm

PCBL

CMP:- 446

Targets: 5x from CMP

👉 Considering the growth prospects and P/E ratio as compared to the sector, PCBL still looks a good buy for long term at current price.

👉 Stock has tumbled 23% from the ATH level of 584

👉 Company has some strong promotors and the company chairman is expecting 5 times profit growth in the next 5 years to upto Rs 2,500 Crores.

#PositionalTrade

📈 Technical Analysis

DMART

CMP:- 3987

Upside potential:- 5900++

Expected ROI from current levels:- 50% ++

👉 After falling 27% from it's recent high, stock is expected to consolidate in the range between 4220 and 3800.
👉 This range can be considered for accumulation.
👉 Stock is trading near 200 WEMA support line which also coincides with the support trendline.
👉 Strong monthly support stands at 3180 levels
👉 Considering the strong fundamentals and growth prospects of the company, current scenario provides a great opportunity for investors to accumulate this stock for more than 50% upside potential in the coming months

I’m currently working on a fundamental analysis of a well-established company and will share the details, along with the chart, here soon. Stay tuned!

Hello members, hope you're all having a great weekend! 🙂

I haven't shared any new trades in the last few sessions because we're not seeing suitable setups at the moment. The current market situation is uncertain due to FII outflows and Nifty showing weakness on the charts. In such conditions, breakouts or trend reversals are more likely to fail.

For now, I’m keeping the market on watch. Rest assured, I’ll share any good opportunities as soon as they arise.