Sirca Paints Breakout

8 set 2022

1. Buy or Sell at your own risk
2. Don't risk more than 1%-2% of your capital as stop loss
3. Position Size formula:- Stop Loss Amount/(Buy Price-Initial Stop Loss Price)
4. Sell on RSI close below 30 (or use any other method of your liking)
5. Some other ways to sell stocks can be
a. 25% or 50% up in three weeks or less
b. Weekly tailing tops with high volume
c. Exhaustion gaps
d. Heavy daily volume without further upside
e. Largest one day price drop

After a consolidation since December 2021, SIRCA has given a breakout today. Buy with a stop just below ₹580. (One can use the low of the previous bar/supertrend indicator/previous support point/fixed percentage from the buy price as stop loss also)

Strengths: -
1. Quarter sales growth is at 90% and quarter profit growth is at 428%, TTM sales growth is at 40% and TTM profit growth is at 90%

2. 5-year average ROE at 15%

3. Debt to equity at 0.00(less than 1 is good), Interest Coverage at 841(greater than 3 is good), Current Ratio at 5.51(greater than 1.5 is good)

4. The company has been maintaining a healthy dividend payout of 20.3%

5. Debtor days have improved from 107 to 85.0 days

6. The company's median sales growth has been 15.5% in the last 10 years

Weaknesses: -
1. Stock is trading at 7.67 times its book value

2. The company has a low return on equity of 11.9% for the last 3 years

Disclaimer: I am not SEBI Registered. Do trade or invest at your own risk, I am not responsible for any losses and won't claim anything from your profits either. Take financial advices from your advisors before jumping in.