Indian stock alert

INDIA

Afternoon Alert: Vedanta lifts 2.1% on robust volume 25 July 2017 12:58 IST

NEWS BITES - BRIC

Vedanta Limited (NSE:VEDL) traded on heavy volume of 1.4 times average so far today while the price lifted Rs5.60 (or 2.1%) to trade at Rs270.20.

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

+ The positive 7.05 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ In the last three months the stock has hit a new 52-week high six times, pointing to an uptrend.

+ The price increased 0.7% in the last week and soared 13.9% in the last month.

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

Undervaluation:

+ Return on Capital Employed 16.8% [4.0%]

+ Dividend yield of 7.2% [2.9%]

Other Bullish Signals include:

+ The company is cash rich with Cash to Market Capitalisation at 46.7%.

+ Total Liabilities/EBITDA of 4.8 is less than the Joseph Piotroski benchmark of <5.

+ Tobin's Q Ratio is 0.5. Compared with the rest of the market the stock is undervalued.

Note

The stock has underperformed 52% of the Indian market over the past 6 months.

Bearish Signals:

Net Profit growth has shown signs of deterioration in recent quarters.

Overbought/Bearish:

The 1.5% discount to 12-month high of Rs274.25 against the 89.6% premium to 12-month low of Rs142.53 suggests the climb might be peaking.

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

Overvaluation:

Price/Sales of 1.3 [0.7]

Price to Book of 2 [1.7]

Vedanta Limited (NSE:VEDL; BSE:VEDL; NS:VEDL; IN:VEDL)

ISIN: INE205A01025

PermID: 4295872982

Source: www.BuySellSignals.com