Mold-Tek Technologies Breakout

12 thg 12, 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 May 2022, MOLDTECH has given a breakout today. Buy with a stop just below ₹109. (One can use the low of the previous bar/supertrend indicator/fixed percentage from the buy price as stop loss also)

Strengths: -
1. Quarterly sales growth is at 48% and quarterly profit growth is at 87%

2. Debt to equity at 0.08 (less than 1 is good), Interest Coverage at 49.6 (greater than 3 is good), Current Ratio at 3.81 (greater than 1.5 is good), FCF to CFO at 73.6%

3. Promoter holding has increased from 47.83% to 48.36% over the last quarter and FIl holding has increased from 0.01% to 0.17% over the last quarter

4. The company has been maintaining a healthy dividend payout of 45.9%

Weaknesses: -
1. The company has delivered a poor sales growth of 8.76% over the past five years

2. Debtor days are high at 81

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 advice from your advisors before jumping in.