Stock Analysis – Educomp Solutions

After Aptech Educomp solution is another stock to be analysed as it has winessed a high of more than 5000 Rs. Now trading above 3300 has been technically corrected and the 11th year plan announced by the Govt is expected to be a boon for this stock, thus this stock needs an analysis to proof itself to be a part of our portfolio.

FUNDAMENTAL ANALYSIS:-
The company has a market cap of more than 5700 crs with a P/E of 71.43 and EPS of 46.80. and is the market leader in ICT solutions and smart classes. In the 11th year plan Govt announced 38,700 Crs capex programme for ICT schools and Rs 8400 Crs in Edusat to increase penetration of computer education in shools which is currently 12% approx. This will striaght way benefit Educomp as it is the leader in ICT.The recently launched K- 12 business is expected to be a success. Thus the company is on the winning streak .

TECHNICAL ANALYSIS:-
The stock was an outperformer and has reached a high of 5650 Rs then corrected a dropped down to 2260 levels. From there a strong consolidation has been seen and todays fall has given an oppurtunity to the investors to enter. Stock is technically corrected and running above 50 dma substantially. The daily RSI is on positive divergence and a strong support is witnessed at 3150-3200 levels on movement chart.
Days BSE NSE
30 2982.54 2982.96
50 3123.66 3123.29
150 3700.88 3700.82
200 3693.85 3694.38

ADVICE TO INVESTORS:-
Based on the above analysis it is believed that the stock is now above its 50 sma and is sustainable. One can buy this stock keeping a stop loss at3150 Rs. for the target given below.

TARGET:-
Based on above analysis targets estimated are
i) Short term – 3650-3700 Rs. for positional traders with stop loss of 3150 Rs.
ii) Medium term – 3900-4000 Rs. for investors, Once it crosses 3700 and remains there.
iii) Long Term – 4580-4700 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