Star Paper Mills Breakout

2022年8月10日

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 November 2018, STARPAPER has given a breakout today. Buy with a stop just below ₹175.

Strengths: -
1. March 2022 Sales growth is at 42% and Profit growth is at 112%

2. Debt to equity at 0.00 (less than 1 is good), Interest Coverage at 95 (greater than 3 is good), Current Ratio at 4.27 (greater than 1.5 is good), FCF to CFO at 82.4%

4. Dividend yield at 1.22% (consistent dividend payer since March 2017)

5. FII increased stake from 0.13 in March 2022 to 1.70 in June 2022

6. ADX > 30 on daily chart

7. Stock is trading at 0.59 times its book value

Weaknesses: -
1. The company has delivered a poor sales growth of 0.39% over the past five years

2. Company has a low return on equity of 6.02% for last 3 years

3. Promoters have pledged 47.5% of their holding

4. Earnings include an other income of Rs.18 Cr

5. Promoter shareholding is at 45.17%

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.