Vodafone Idea, some momentum stocks flash ‘new buy’ signal on RMI scanner

The BSE Sensex slipped 500 points in the April 17 trading session with only seven stocks in the 30-share index advancing as against trailing 23. The advance-decline ratio was in favour for the BSE-listed companies with 2,117 advances and 1,638 declines.

Few stocks displayed positive momentum in a weak market, while some shares generating ‘new buy’ signal on the daily time frame, according to the RMI scanner. The Rohit Momentum Indicator (RMI) is a non-range bound indicator.

Kirloskar Brothers: Trading at a PE of 32.9, Kirloskar Brother shares are up 33 percent on a year-to-date basis. In one month, the Kirloskar Brother shares are up by more than 17 percent, outperforming the market by a wide margin. The company’s net profits have grown by an impressive 49 percent CAGR in the past three years. The RoE stands at 18 percent.

According to Axis securities, the company is continuously introducing products in the US and the UK markets and focusing on raising its revenue contribution from the service segment for its UK entity. The brokerage has been bullish on Kirloskar Brothers owing to strong visibility from the value-added products, softening raw material costs, and operational leverage generated at the international subsidiaries.

 Idea: IIFL has recently upgraded Vodafone Idea to ‘add’ with a target of Rs 14. IIFL believes that Idea’s financial position will improve after the FPO of Rs 18,000 crore, which also happens to be the largest FPO in India. According to IIFL, there will be two rounds of tariff hikes in the next two years, which can benefit all telcos, including Vodafone Idea. The Idea shares have risen 113 percent in one year but have corrected by more than 24 percent year-to-date. Delivery-based buying was seen in Idea shares in the April 16 trading session.

Vedant Fashions: The stock of  Vedant Fashions (NSE: Manyavar) are trading close to its 52-week lows. The current PE for Manyavar shares is 50, which has slipped from the levels of 110 in August 2022. RoE is 34 percent and the net profits grew at a CAGR of 24 percent in the past five years. Vedant Fashions shares are trading below 10-day and 20-day simple moving average. Delivery-based buying was seen in Vedant Fashion shares on April 16 trading session.

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