Thursday, June 12, 2014
Kamdar: Poised for Breakout?
Kamdar (closed at RM0.66 yesterday) has proposed a 4-sen first & final dividend wuth the entitlement date fixed on July 7, 2014. It paid out dividend of 3 sen in 2013and 4 sen in 2012. This gives Kamdar, a cloth trader, an attractive dividend yield of 6%.
Kamdar's EPS for the last 4 quarters amounted to 8.05 sen. It has a NTA of RM1.12. This means the stock has a trailing PE of 8.2 times and a PB of 0.6 time.
Kamdar's financial position is deemed satisfactory as at 31/3/2014 with current ratio at 2.6 times and gearing ratio at 0.44 time.
A quick look at Chart 1 shows that Kamdar has a good profit track record. Its profit margin has also been rising steadily.
Chart 1: Kamdar's last 13 years P&L, Cashflow & Profit Margin (Source: Nexttrade, EquitiesTracker)
What is interesting is that the stock has just broken above its strong horizontal resistance at RM0.65, albeit on very thin volume. Its next resistance is at RM0.90.
Chart 2: Kamdar's monthly chart as at June 11, 2014 (Source: Chartnexus.com)
Chart 3: Kamdar's weekly chart as at June 11, 2014 (Source: Chartnexus.com)
Based on technical breakout, satisfactory financial performance & position and reasonably attractive valuation, Kamdar could be a good medium-term investment.
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Kamdar.