The Relative Strength Index (RSI) is a technical indicator used in financial markets to measure the speed and change of price movements. It ranges from 0 to 100 and is typically used to assess whether a stock or asset is overbought or oversold.
An RSI value above 70 indicates that the asset might be overbought, suggesting it could be overvalued and might experience a price correction. Conversely, an RSI below 30 indicates that the asset might be oversold, potentially signaling that it is undervalued and could experience a price rebound.
The stocks to watch out for are listed below
Apar Industries Ltd
Apar Industries specializes in manufacturing electrical products like transformers, conductors, and cables. They also focus on renewable energy solutions and the production of specialty lubricants.
It’s trading at an RSI of 26.23 indicating it is oversold. It has achieved a 5-year net sales CAGR of 15 percent and a 5-year net profit CAGR of 44 percent, along with a 5-year annualized return of 1,735 percent.
It has a market capitalization of Rs. 28,624 crores, based on the company’s fundamental Ratios the company’s P/E is 35.45 less than the Industry P/E ratio of 66.45 indicating it is undervalued, and the company Debt to Equity Ratio stands at 0.13 with an impressive ROE of 20.7 percent and ROCE of 32.94 percent.
BASF India Ltd
BASF India is a leading chemical company that produces a wide range of products, including chemicals, agricultural solutions, performance materials, and coatings.
It’s trading at an RSI of 28.83 indicating it is oversold. It has achieved a 5-year net sales CAGR of 18 percent and a 5-year net profit CAGR of 80 percent, along with a 5-year annualized return of 338.3 percent.
It has a market capitalization of Rs. 18,322 crores, based on the company’s fundamental Ratios the company’s P/E is 28.63 less than the Industry P/E ratio of 54.54 indicating it is undervalued, and the company Debt to Equity Ratio stands at 0.05 with an impressive ROE of 18.53 percent and ROCE of 24.06 percent.
Bosch Ltd
Bosch Ltd specializes in automotive components, power tools, and security systems. Bosch is also heavily involved in IoT, automation, and smart technologies across various industries.
It’s trading at an RSI of 25.11 indicating it is oversold. It has achieved a 5-year net sales CAGR of 7 percent and a 5-year net profit CAGR of 3 percent, along with a 5-year annualized return of 100.18 percent.
It has a market capitalization of Rs. 84,398 crores, based on the company’s fundamental Ratios the company’s P/E is 41.68 and the company Debt to Equity Ratio stands at 0 with an impressive ROE of 16.38 percent, and ROCE of 20.89 percent.
Kaynes Technology Ltd
Kaynes Technology is known for providing end-to-end solutions in the electronics manufacturing services (EMS) sector. They specialize in automotive electronics, industrial, and medical equipment manufacturing.
It’s trading at an RSI of 27.90 indicating it is oversold. It has achieved a 3-year net sales CAGR of 62 percent and a 3-year net profit CAGR of 165 percent, along with a 5-year annualized return of 492.4 percent.
It has a market capitalization of Rs. 28,539 crores, based on the company’s fundamental Ratios the company’s P/E is 110.31, and the company Debt to Equity Ratio stands at 0.27 with an ROE of 9.13 percent and ROCE of 11.66 percent.
Written by Sridhar J
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