Quarter Ending Sept'19, the NAV of RCL.N.0000 was 211.00. The EPS for 6 months is 8.33, and 5.24 for the 3 months. Going forward we could expect their profits to keep moving higher given the improved business out look for their sector. Incidentally they finished 2019 FY with an EPS of 23.75, despite them showing only 7.12 for the 6 months. Given these scenarios, we could see a better profit outlook for the counter for the 12 months. More importantly this had been one of the best dividend paying counters in the bourse, but with subdued business out look during the past the payout saw a reduction. They have been paying 2 dividend payments anywhere between January and May of every year. That's about 1 to 6 months from now. Only thing is that their total dividend payout per share during the last FY was a meager 4.00. If they feel that the business out look is better, they might increase that amount this year around.
Like many counters RCL too moved into a new Up Trend, but it started only from September whilst the overall market was from May'19. However it is now trading in front of a major resistance zone of 100.00 to 101.00. Going by the momentum in the counter, I expect a short term support any where between 89.00 and 93.00, before the next test of the said resistance zone of 100.00 to 101.00. Price and volume action during that breakout will determine their next move forward.
Strategy - Buy on Dips. Wait for the retracement.
No stop loss as the out look is Bullish.
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