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INDIA

Morning Alert: Aarti Drugs jumps 7.7% on strong volume 19 June 2018 10:16 IST

NEWS BITES - BRIC

Aarti Drugs Ltd. (NSE:AARTIDRUGS) traded on heavy volume of 3.1 times average so far today while the price jumped Rs46.70 (or 7.7%) to trade at Rs654.10.

SECTION 1: The past week

Current indications of bullish signals that support the trend in the unusual trading

1.1 At a glance

Weekly: Aarti Drugs jumps 16.6% on spectacular volume June 18, 2018 15:30 IST

Aarti Drugs Ltd. (NSE:AARTIDRUGS), India's 42nd largest Pharmaceuticals company by market cap, has climbed Rs86.35 (or 16.6%) in the past week to close at Rs607.40, ending a six-week streak of losses. Compared with the BSE SENSEX Index which rose 64.8 points (or 0.2%) in the week, this represented a relative price increase of 16.4%. This has been propped up by spectacular volume of 5.9 times average for the week. In the past week the market cap has jumped Rs2 billion (US$29.9 million).

1.2 5-day Recap

Aarti Drugs outperformed the BSE SENSEX index in 4 out of 5 days.

[Volume Index (VI); 1 is average]

DayHeadlineClose price [INR]Price change %Relative change %Comment
FridayAarti Drugs accelerates rise, up 16.1% in 2 days623.412.512.4Top Rise; VI=25.6
ThursdayAarti Drugs keeps rising, up 6.6% in 4 days554.33.23.6
WednesdayAarti Drugs outperforms 82% of the market536.91.11.0
TuesdayAarti Drugs rises for a second consecutive day, a two-day rise of 2.1%531.01.91.3

Note

DayHeadlineClose price [INR]Price change %Relative change %Comment
MondayAarti Drugs drops 2.6% after hitting resistance607.4-2.6-2.4Steepest Fall; VI=3.1

SECTION 2: Technical indicators

Bullish:

The positive 12.86 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal (12-day minus 26-day Exponential Moving Averages). Both the 12-day and the 26-day EMA are rising - another bullish signal.

In the Indian market, the stock's relative price strength percentile is rising at 93 for 6 months, 93 for 3 months and 97 for 1 month.

The present value of Rs1,000 invested one year ago is Rs1,262 [vs Rs1,131 for the BSE SENSEX Index], including a capital gain of Rs260 and dividend reinvested of Rs2. The total return to shareholders for 1 year is 26.2%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Parity:

Return on Assets 5.9% [5.8%]

Undervaluation:

Price/Earnings of 18.7 [31.4]

Price/Sales of 1.2 [3.5]

Price to Book of 3.4 [5.3]

Return on Equity 18.1% [11.3%]

Return on Capital Employed 16.2% [9.4%]

Overvaluation:

Dividend yield of 0.1% [0.6%]

Note

The stock is at a discount of 16.7% to the 12-month high of Rs785.0 on 09 Jan, 2018. It is also at a premium of 34.9% to the 12-month low of Rs485.0 on 21 Aug, 2017.

SECTION 3: Ranking

DescriptionValueRank In Market
Price/MAP2001.14In Top Quartile
MCap $US million226.7In 2nd Quartile
52-week Range (in Rs)485.0-785.0
1-month Range (in Rs)510.0-665.0
Today's Volatility %11.2In Bottom 5%
RSI80.3Bearish
Bollinger Bands1.2Bearish

SECTION 4: Earnings

FY2018 Annual Report: Aarti Drugs EPS Growth slows to 4.8%

SECTION 5: Recent News of Aarti Drugs

June 18: Clarification sought from Aarti Drugs Ltd

The Exchange has sought clarification from Aarti Drugs Ltd on June 18, 2018, with reference to increase in Volume.

The reply is awaited.

Source: Bombay Stock Exchange of India

June 18: Aarti Drugs: Clarification

With reference to increase in Volume, Aarti Drugs Ltd has submitted to BSE a copy of Clarification is enclosed.

Source: Bombay Stock Exchange of India

Aarti Drugs Ltd. (NSE:AARTIDRUGS; BSE:AARTIDRUGS; NS:AARTIDRUGS; IN:AARTIDRUGS)

ISIN: INE767A01016

PermID: 4295873816

Source: www.BuySellSignals.com