While searching for stocks that have a high probability of reversing from a downtrend to an uptrend, a popular Inverse Head & Shoulders chart pattern makes it to the list of top picks among market participants.
The same pattern is starting to form on the daily chart of Craft automation Ltd (NS:). It is an automotive engineering company with a market capitalization of INR 9,091 crore and trades at a TTM price-to-earnings ratio of 28.43.
Image source: InvestingPro+
The stock has been given a financial health score of 4 out of 5, making it almost an excellent portfolio pick. Such ratings are obtained after analyzing more than 100 parameters across industries such as relative valuation, cash flows, profitability, etc. Any stock with a rating of 3 or above can be considered for investment and can be combined with other factors to arrive at a to achieve comprehensive results. approximation.
While the fair value of the stock is INR 4,610, leaving a valuation gap of INR 2.6% against the CMP, analysts are quite optimistic about the numerator. A total of seven cover this stock with an average target price of INR 5,309 per share. That’s a decent advantage of about 18%.
Image source: Investing.com
On the technical front, the stock’s Inverse H&S pattern indicates a target price of INR 5,250 – 5,300, almost in line with analyst estimates.
Investors can combine analyst targets, fair value and technical levels to develop a holistic approach to investing. InvestingPro makes it easier to follow this powerful framework and it is now available at a steep discount of up to 69%, at INR 216/month. click here to seize your temporary opportunity today!
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X (formerly Twitter) – Ayush Khanna
