Small Cap Idea for Short Term:EAST WEST Holding

By | June 19, 2021 5:39 pm

We are starting a New Series where we will discuss Mid/Small Caps stocks based on Both Fundamentals and Technical for Short and Long term Investment. Last time we have covered MSTC  Mazagon Dock s G G Engineering Ltd.  Pritika Auto Industries This week we will Analysis EAST WEST Holding

Company Background:

EAST WEST Holding was incorporated on in the year 1981 under the Companies Act, 1956 and has been primarily engaged in the business of general trading, buying, and selling of all kind of goods & merchandise and acting as purchasing, selling or Commission agents. The main objects of the Company is carry on the business of providing logistics solutions including air and ocean freight forwarding operation and road transportation.

East West freight Carriers Ltd (EWFCL) which has its presence in the Indian Freight Forwarding & Logistics space for more than 40 years and ranked as India’s leading air freight forwarding Companies operating in Asia, Middle East, USA, Europe, Africa and Australia has become the Wholly owned Subsidiary of our Company EAST WEST HOLDINGS LIMITED (EWHL).

EAST WEST Holding is listed on BSE with TICKER EASTWEST | 540006 |

The global logistics industry is expected to reach a value of $6,537 Billion by 2025, growing at a CAGR of 4.7% during 2020-25. As per recent articles and reports, this is primarily going to be driven by multiple segments and one of them that stands out is e-commerce. The end of 2019 and the start of 2020 faced trade uncertainties due to overall stress across economies. Trade sentiments have been severely dampened across segments due to this pandemic. However, due to continuous efforts by governments across countries, trade is expected to take a U shaped recovery. The logistics sector also faced a slowdown concerning low trade volumes across ports. However, the Indian Logistics sector has strong roots to grow because of the demand visibility across Industries and Supply which can be accessed through the investment initiatives undertaken by the government and other players in this sphere

East West Freight Carriers which is the wholly-owned subsidiary of East West Holding has been expanding its overall product offerings by providing value-added services to its clients to transform itself as an end to end complete logistics solutions provider. East West has been taking structural steps to expand its network across the globe for its air freight business. We have been consistently offering more value to our customers to create a more sustainable offering. On the ocean freight business, the company has recently entered into an agreement to acquire a private entity called Marinetrans India Pvt. Ltd. which is engaged in offering freight forwarding services to Europe, Africa, Gulf, and Middle East countries. On the completion of the acquisition, EWHL is expected to add 15000 container capacity to its existing ocean freight business hence translating into additional revenues of INR 1200 Mn.

EAST WEST Holding pays Dividend and also gave Bonus Last year. Financail Information of the company can be seen Here. bse

Technicals

Daily Chart 

EAST WEST Holding has been trading in a trading range of 7.4-8.6 is last few months forming a BOX pattern and we are in the middle of the range. Volumes have also seen an Increase in past few trading session. As Price is near the lower end of trading range Risky Traders can also go Long above Rs 8 expecting price to do a Breakout above Rs 8.6.

Target for Breakout will be 8.6+1.2= Rs 9.8. 

Weekly Chart

On Weekly chart  we are approching 125 Week time cycle in coming week so price momemtum can increase in coming week.

Traders can go Long in range of 7.9-8 with SL of 7.2 for a target of 8.6/9.2/9.8/10.5 

Above Post is for Educational Purpose.Please also do your own study before trading this stock and trade in small quantity also be strict with Stoploss.

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