WS Industries: Current Standing and Potential
WS Industries, a Chennai-based company specializing in electrical and ceramic products, has navigated through several highs and lows in its share price over the years.
Historical High and Recovery: The company experienced a significant peak in its share price in the early 2000s, with a high of around INR 275 in September 2007. However, the 2008 financial crisis led to a drastic reduction, and by 2013, the stock was trading in the low single digits. After approximately 17 years, the stock shows signs of recovery with increasing volumes and a relative strength index (RSI) over 70 in the monthly chart, indicating growing investor interest.
Pros: One of the positive aspects of WS Industries is the improvement in debtor days from 240 to 94.7, indicating better credit control and cash flow management. Additionally, promoter holding has increased by 4.36% over the last quarter, signaling confidence in the company's prospects.
Cons: Despite these positives, there are some concerns. Even though the company reports repeated profits, it is not distributing dividends, which could be a point of contention for income-seeking investors.
Given the accumulation of shares since September 2007 and the gradual improvement in financial metrics, WS Industries has the potential to outgrow the market and eventually reach the price targets anticipated for many years.
The ideal entry price is around 146.5 +, with a target range of 290.
Caution and Do Your Own Research (DYOR)
Historical High and Recovery: The company experienced a significant peak in its share price in the early 2000s, with a high of around INR 275 in September 2007. However, the 2008 financial crisis led to a drastic reduction, and by 2013, the stock was trading in the low single digits. After approximately 17 years, the stock shows signs of recovery with increasing volumes and a relative strength index (RSI) over 70 in the monthly chart, indicating growing investor interest.
Pros: One of the positive aspects of WS Industries is the improvement in debtor days from 240 to 94.7, indicating better credit control and cash flow management. Additionally, promoter holding has increased by 4.36% over the last quarter, signaling confidence in the company's prospects.
Cons: Despite these positives, there are some concerns. Even though the company reports repeated profits, it is not distributing dividends, which could be a point of contention for income-seeking investors.
Given the accumulation of shares since September 2007 and the gradual improvement in financial metrics, WS Industries has the potential to outgrow the market and eventually reach the price targets anticipated for many years.
The ideal entry price is around 146.5 +, with a target range of 290.
Caution and Do Your Own Research (DYOR)
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