CHART PATTERN: BULL FLAG
9 DAYS MOVING AVERAGE: RED LINE
21 DAYS MOVING AVERAGE: BLUE LINE
SUPER TREND: BUYING SIGNAL
Today’s stock is Ajanta soya share.
BUSINESS ANALYSIS OF AJANTA SOYA SHARE PRICE
Ajanta soya limited was established on 13th January 1992 under Companies Act, 1956.
Ajanta Soya is engaged in the primary business of manufacturing Vanaspati and various kinds of cooking oil with applications for bakery products like biscuits, puffs, pastries and other applications.
For the last two decades Ajanta Soya has been a leading manufacturer and marketer of Vanaspati, Cooking Oils and Bakery Application.
Ajanta Soya has increased its production capacity from time & again to cater to the changing business environment & varied customer needs.
There has been a massive increase in turnover over the last decade and there is an expected growth in upcoming years.
The brands associated with Ajanta Soya are DHRUV, ANCHAL and PARV.
The company was listed on Bombay Stock Exchange in the year 1993.
Now, coming to the financials of the Ajanta Soya share.
FINANCIAL ANALYSIS OF AJANTA SOYA SHARE PRICE
The Market Capitalization of Ajanta Soya share is ₹ 176 Cr.
The Ajanta Soya share has a price to earnings ratio of 7.02 which is slightly greater than the industry price to earnings ratio of 6.49.
The return on capital employed of the Ajanta Soya share is 60.9% which is superb as such ROCE is quite rarely seen.
The return on equity of Ajanta Soya share is 37.7% showcasing the company’s strong return on investment.
The debt to equity ratio is 0.04 which is almost negligible.
In the last 5 years, the Ajanta Soya share has delivered an excellent profit growth of 39.03% CAGR.
The sales of Ajanta Soya share have reached to it’s all time high of Rs 260.80 Cr.
From the last 4 quarters (Jun 2020, Sep 2020, Dec 2020 & Mar 2021) the operating profit of Ajanta Soya share have increased from Rs 1.17 Cr to Rs 15.79 Cr.
The earning per share of the company is Rs 5.88.
The sales of the Ajanta Soya share were Rs 760 Cr in March 2020 which increased drastically to Rs 931 Cr in March 2021.
There has been a tremendous growth in the operating profit YOY which was Rs 16 Cr in March 2020 and now is Rs 36 Cr in March 2021.
From the past 6 years, share capital is constant at Rs 16 Cr.
In the year 2021, the reserves have increased to Rs 63 Cr from Rs 38 Cr in the year 2020 which shows the massive interest of investors into Ajanta Soya shares.
The company also has a net cash flow of Rs 2 Cr.
The promoters have a holding of 46.85%.
Public has a holding of 53.15%.
Based on the market capitalization, Ajanta Soya stands tall at 1st position in their respective markets.
This is a brief overview of the financials of the Ajanta Soya share which shows the dominance in their respective market.
Now, let’s deep dive into the technicalities of Ajanta Soya share.
CHART PATTERN ANALYSIS
If we take a closer look at the chart in a daily time frame, there is a formation of a bull flag pattern.
For Ajanta Soya share price there are two targets as stated in the above image.
Ajanta Soya share price is trading in a channel and once the breakout is achieved a massive rally for achieving the targets could be seen.
The Ajanta Soya share price on 10th August 2021 is Rs 109 which would definitely change in the upcoming future.
For Ajanta Soya share price analysis, we are taking 9 days and 21 days moving average.
The 9 days and 21 days moving average are trading quite near to each other so once the 9 days moving average bounces from the psychological support of the 21 days moving average, we’ll be able to see a massive uptrend.
9 days moving average is indicated by red line while blue line highlights the 21 days moving average.
When we take a closer look at the 4 hour chart, the Super trend is suggesting a buying signal.
This is the right time to enter Ajanta Soya shares to attain maximum profits.
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