Hello and welcome back to one more article where we would analyze Akzo Nobel India share price in the best possible way through Business, Fundamental and Technical analysis.
So, today’s stock is Akzo Nobel India Ltd.
Now, let’s see the business of Akzo Nobel India Ltd.
Table of Contents
BUSINESS ANALYSIS
Akzo Nobel India Limited, formerly ICI India Ltd, is into the coatings business.
The coatings business has two main components.
Decorative paints and performance coatings and is served by both organized and unorganized sectors.
The company sells decorative paint under the well-known Brand Dulux.
Akzo Nobel India is a subsidiary of Akzo Nobel N.V, a Dutch multinational company.
The company has been at the forefront of cutting edge innovation and has been supplying trusted and well-known brands like Dulux, Sikkens, International and Interpon.
Akzo Nobel India has state of the art manufacturing sites, offices and distribution network across the country with an employee strength of 1500 officials.
Now, coming to the financials of the company.
FINANCIAL ANALYSIS
The Market Capitalization of Akzo Nobel India Ltd is Rs 10,386 Cr.
The price to earnings ratio of the stock is 50.0 which is lesser than the industry price to earnings ratio of 98.3.
The value of P/E is relatively lesser which means the returns are favorable.
The return on capital employed of Akzo Nobel India is 21.7% which shows there is a good performance and bright future ahead.
The return on equity is 16.4% which is also decent as per the valuations of Akzo Nobel India Ltd.
The company has a debt to equity ratio of 0.05 which is controllable by the company and can almost be considered to be debt free.
The company has been maintaining a healthy dividend of 62.81%.
Based on market capitalization, Akzo Nobel India stands tall at 2nd position.
From the last 4 quarters ( Jun 2020, Sep 2020, Dec 2020, Mar 2021) the sales have increased from Rs 258 Cr to Rs 781 Cr.
The operating profit was -13 Cr in June 2020 quarter due to Covid pandemic, but it has drastically increased to Rs 114 Cr in March 2021 quarter.
The earning per share value is Rs 16.30.
In the year 2021, the expenses have decreased to Rs 2081 Cr from Rs 2291 Cr in the year 2020 which shows the company is spending less amount of money and is focusing on generating more profits.
The balance sheet of Akzo Nobel India is also pretty awesome.
And in the year 2021, the reserves have increased to Rs 1243 Cr from Rs 1192 Cr which were in the year 2020.
The share capital of the company is Rs 46 Cr from the last 3 years.
Promoters have a holding of 74.76% till March 2021 quarter.
The Flls have a 1.43% holding.
The Dlls have a 10.97% holding while only 12.85% is with the public.
The company is in safe hands and their growth is excellent.
This is a brief overview of the financials of the Akzo Nobel India Ltd which showcase the dominance in their respective market.
Akzo Nobel India share price has an interesting technical prospect.
For doing technical analysis we need to dwell into technical chart patterns as well as technical indicators. Charts are an ultimate guide for understanding the entry and exit levels which combined with moving averages and super trends would make an investors conviction more prominent.
CHART PATTERN ANALYSIS
If we take a closer look at the chart in a daily timeframe, we can see that there is a complex reverse head and shoulder pattern formation.
The right shoulder is under formation and breakout might be achieved in a short span of time.
A high probability of achieving 12% target is visible from the chart analysis.
The Akzo Nobel India share price on 17th July 2021 is Rs. 2281 which would definitely vary in the upcoming future.
The high price of the stock in the last 1 year was Rs 2530.
MOVING AVERAGES
In Akzo India share analysis we are using 9 days and 21 days moving averages.
For Long term investing one can use the 200 days moving average which is a great indication of the behavior the stock is showing for the last 1 year.
The 9 days and 21 days moving average is quite near which shows that the stock is consolidating for a certain time and would give a breakout in a short span.
The red line shows the 9 days moving average while blue indicates the 21 days moving average.
SUPER TREND
Super trend helps to identify the correct time to enter the stock and the appropriate time to exit.
In the above chart of Akzo India share, a daily time frame is taken to show the super trend analysis.
For more alerts of buying and selling one can reduce the timeframe and predict the correct entry and exit in the stock.
DISCLAIMER:
We do these types of analysis for study purpose only. We don’t recommend anyone to make their decisions of buying or selling based on this analysis. Prices do fluctuate daily and the chart patterns would be impacted due to the variation. This platform is just to share the learnings.
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