Balmer Lawrie & Co

There are many reasons for me to avoid Balmer Lawrie & Company Ltd. Let me share each of them so they can help you an easy process to avoid companies for investment. Once we have done that then we will move towards technicals as well.

1. The company as per screener https://www.screener.in/company/BALMLAWRIE/ is a diversified company and I avoid them because when companies has more than one business under it, I am not that capable of knowing which business grows at what rate and so makes me not feel good about it.
2. So when I Google about this company I found that it is a govt of India undertaking. That is again an avoid for me because I don't invest in any company where Govt holds majority of stake because then it becomes a salary playground for the employee instead of work efficiency.
3. Stil if I dwell into the number there is no sales growth for last 4 years and sales numbers are as follows since 2012 - 2580.68, 2626.63, 2740.37, 2711.59 with profit margin of only 7%. That is clearly not a good fundamental first step for me.

So completely an avoid but let us also see the technicals


250 is a very steep resistance for this stock. There is a gap down candle and then it has been tested and failed. So clearly this will be really tough to cross and with the kind of results the company is having, looks like it needs other triggers to cross that resistance.

Again because company is profitable and is trading under 15PE, 200 can be a good support as well because at 200, with 20% ROCE and twice the book value, this company may be good safe option for investors.

So everything suggesting that it can be traded with 200 as stop with target of 240ish+ levels but nothing more into it.