8 Indian stocks that match William J O’Neil’s methodology of equity investing

May 26, 2024, 11:16:01 AM IST1/9

​Stock ideas for equity investing

MarketSmith founder, Late William J O’Neil, was a stock market legend who pioneered the use of historical precedent based on both fundamental and technical analysis for equity investing. His philosophy centres on seven characteristics common to the greatest stock market winners of all time.

2/9

​Sika Interplant Systems | CMP: Rs 2675

With an operating revenue of Rs 106 crore on a trailing 12-month basis, Sika Interplant Systems has reported outstanding annual revenue growth of 77%, pre-tax margin of 24% and ROE of 18%. The company is debt-free and has a strong balance sheet enabling it to report stable earnings growth across business cycles.
The stock from a technical standpoint is comfortably placed above its key moving averages, around 43% and 86% from 50DMA and 200DMA. It has recently broken out of a base in its weekly chart and is trading around 55% from the pivot point (which is extended from the ideal buying range for a stock).

3/9

​KPT Industries | CMP: Rs 811

KPT Industries has an operating revenue of Rs 151.63 crore on a trailing 12-month basis. The company has an annual revenue growth of 1%, pre-tax margin of 11% and ROE of 21%. The company has a reasonable debt to equity of 14%, which signals a healthy balance sheet.

4/9

​Netweb Technologies | CMP: Rs 2128

Netweb Technologies has an operating revenue of Rs 724 crore on a trailing 12-month basis. The company has an outstanding annual revenue growth of 65%, pre-tax margin of 14% and ROE of 17%. The company is debt-free and has a strong balance sheet enabling it to report stable earnings growth across business cycles.
The stock from a technical standpoint is comfortably placed above its key moving averages, around 20% and 70% from 50DMA and 200DMA. It has recently broken out of a base in its weekly chart and is trading around 22% from the pivot point (which is extended from the ideal buying range for a stock).

5/9

Hindustan Aeronautics

Hindustan Aeronautics has an operating revenue of Rs 30,381 crore on a trailing 12-month basis. The company has a good annual revenue growth of 13%, pre-tax margin of 34% and ROE of 26%. The company is debt-free and has a strong balance sheet enabling it to report stable earnings growth across business cycles.
The stock from a technical standpoint is comfortably placed above its key moving averages, around 37% and 87% from 50DMA and 200DMA.

6/9

​Macfos | CMP: 640

Macfos has an operating revenue of Rs 125.13 crore on a trailing 12-month basis. The company has an outstanding annual revenue growth of 56%, pre-tax margin of 12%, and ROE of 39%. The company has a reasonable debt to equity-of 8%, which signals a healthy balance sheet.

7/9

​Vesuvius India | CMP: Rs 5303

With an operating revenue of Rs 1,688.57 crore on a trailing 12-month basis, Vesuvius India has outstanding annual revenue growth of 20%, pre-tax margin of 18% and ROE of 17%. The company is debt-free and has a strong balance sheet enabling it to report stable earnings growth across business cycles.
The stock from a technical standpoint is comfortably placed above its key moving averages, around 32% and 47% from 50DMA and 200DMA. It has recently broken out of a base in its weekly chart and is trading around 39% from the pivot point (which is extended from the ideal buying range for a stock).

8/9

​IIFL Securities | CMP: Rs 196

IIFL Securities has an operating revenue of Rs 2,161.28 crore on a trailing 12-month basis. The company has annual revenue growth of 4%, pre-tax margin of 25% and ROE of 18%.
The stock from a technical standpoint is comfortably placed above its key moving averages, around 39% and 59% from 50DMA and 200DMA. It has recently broken out of a base in its weekly chart and is trading around 8% from the pivot point (which is extended from the ideal buying range for a stock).

9/9

​Pitti Engineering | CMP: Rs 878

Pitti Engineering has an operating revenue of Rs 1,201.6 crore on a trailing 12-month basis. The company has an annual revenue growth of 12%, pre-tax margin of 10% and ROE of 21% is exceptional. The company has a debt-to-equity ratio of 63%, which is a bit higher.
The stock from a technical standpoint is comfortably placed above its key moving averages, around 7% and 25% from 50DMA and 200DMA.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Tim

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