Stock Analysis –Aptech

Aptech was recently one of the choice stock of experts till it had shown some sharp correction, Fridays smart move has seen the stock giving a break-out past the down ward sloping Resistance trendline. Technically corrected now , this stock can be a good pick for small term gain. Based on the analysis below a reccomendation of buy is given.

FUNDAMENTAL ANALYSIS:-
The company with a market cap of more than 1000 crs has current P/E 0f 276.07 and EPS of 0.84,The Q1 no. on a standalone basis, Aptech posted an increase of 18% in its revenues and 60% in operating profits compared to same quarter last year. The revenues from the retail education business increased by 42% in this quarter. Regarding expansion plan Aptech forayed into Mauritius & Botswana during this quarter. Additional Aptech Computer Education and Arena centres signed up in Russia, Mauritius, Vietnam & Botswana.

TECHNICAL ANALYSIS:-
The stock corrected sharply from its peak of Rs 448 to a low of 139Rs in Jan 08. Then it rallied to 280 Rs. and now being consolidated at a wide range of 170-240 Rs. An intermediate bottom seems to be placed at 170-175 levels.Seeing the moving average below we analyse that the stock is now above its 150 sma. If it sustain we may see more rise in the stock
Days BSE NSE
30 198.74 198.65
50 204.50 204.42
150 233.10 233.02
200 269.52 269.52

ADVICE TO INVESTORS:-
Based on the above analysis it is believed that the stock is now above its 150 sma and seems to be sustainable. One can buy this stock keeping a stop loss at 215 Rs. for the target given below.

TARGET:-
Based on above analysis targets estimated are
i) Short term – 250-260 Rs. for positional traders with stop loss of 215 Rs
ii) Medium term – 280-300 Rs. for investors, if it crosses 200 dma ie 269.50 and sustain there.
iii) Long Term – 380-410 Rs. for investors.

Note: - All above views are mine and before investing investors should apply their con sense and do it at their own risk.

HAPPY INVESTING