Selan Explorations Technology Investment Idea for Long- Term💡

Introduction

Selan Exploration Technology Ltd. engages in the production of crude oil and natural gas. It focuses on the development of Bakrol, Indrora, Ognaj, and Lohar oilfields and the Karjisan gas field situated in Gujarat. The company was founded by R. N. Kapur on July 5, 1985, and is headquartered in Gandhinagar, India.

Observation

If you see the chart from lower time frame it shows a higher low and on day chart Rising window pattern with huge trading volume which clearly indicate stock trend is completely change from down trend to up trend. monthly time frame stock shows a rounding bottom pattern after a long-time correction stock gives a breakout the levels of 612 in June 2024 stock tried to breakout 612 levels in 2014, but it cannot make it. Stock RSI strong also crossover in Aug 2022. stock can retrace till my given level 1, and level 2 which is shown on the above chart. stock first entry is somewhere around 800 but if you want to play safe you can wait for my retracement levels for better risk to reward ratio for long term gain.

Let's touch fundaments

As we disused in introduction this stock belongs from crude oil & natural gas sector that means it is an asset heavy business company where expenses and deprecation is more as compared to asset light business company just because of heavy machinery equipment and its wear and tear.

Stock PE is 30 which is reasonably good as compared to its peers. ROCE 12.28, and ROE is 8.69 which is okay. zero promotor holding pledge & debt free company as compared to ONGC and Oil India. Public holding is 64%, promotor holding 30%. you can learn here about the Promotor holdings and promoter holding pledge 👉 Vascon Engineers: Pioneering Excellence in Construction and Real Estate Development (shehbazkhanalphatrader.org)

Technical Analysis & indicators 🔍

Monthly Chart

Rounding Bottom

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News of the day

1. Indian tobacco-to-hotels conglomerate ITC reported quarterly profit below market expectations on Thursday, as large consumer brands face increasing pressure from consumers shunning them for cheaper alternatives.The Sunfeast biscuits maker posted a profit of 49.17 billion rupees (₹4,917 crore in Indian rupees) for the first quarter ended June 30, from 49.02 billion (₹4,902 crore in Indian rupees) a year earlier.

2. Maruti, Tatamotor, M&M India's top three carmakers by sales, on Thursday, reported a drop in car sales to domestic dealers in July as pent-up demand from last year began to taper off. Hyundai Motor India's (HYUN.NS) sales to dealers dropped 3.3% in July, the first decline in the fiscal year that started in April. Tata Motors' sales slid by 6%, dropping for the second consecutive month. Market leader Maruti Suzuki's sales fell an even steeper 9.6%, notching the first drop since December 2023. Mahindra & Mahindra, whose car portfolio is almost entirely made up of SUVs, said sales to dealers grew 15% in July, faring better than Hyundai and Tata but still recording its slowest growth this financial year. In fact, while retail sales of SUVs jumped 18% from April to June, overall car sales rose 3%. Retail sales for July have yet to be released.

3. Coal India's fuel offtake rose 0.2% to 59.6 million tonnes in July from 59.5 million tonnes a year ago, according to an Indian bourse filing on Thursday.The company's coal output climbed 2.5% year on year to 55.0 million tonnes from 53.7 million tonnes, the filing said.

Educational content

This stock analysis is designed for educational purposes and should not be taken as financial advice. Please carry out your own research or consult with a financial advisor before investing.

Fri Aug 2, 2024