ASTERDM : Breakout Backed by Strong Fundamentals

Took a position in Aster DM Healthcare with a 1% risk of the net capital, after spotting a clean VCP (Volatility Contraction Pattern) formation on the daily chart.

The breakout came with solid volume and clear price structure, aligning perfectly with the improving fundamentals and the recent ICRA rating upgrade. Overall market is also showing bullishness.

Technical Snapshot:

• Multiple contractions forming a tight base before breakout.
  
• Price breakout above prior resistance with momentum.
  
• Volume expansion confirming institutional participation.
  
• Price holding above all key EMAs, showing trend strength.
  

Fundamental Tailwinds:

• ICRA upgraded ratings to [ICRA]A+ / [ICRA]A1+, citing robust financial profile and expanding operations.
  
• Revenue up 11.9% YoY in FY25; EBITDA margins improved to 19.5% in FY25 and 20% in Q1 FY26.
  
• Upcoming merger with Quality Care India Ltd (QCIL) will create one of India’s top three hospital chains.
  
• Plans to add 2,600 beds across brownfield and greenfield projects.
  

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If my perspective changes or if I gather additional fundamental data that influences my views, I will provide updates accordingly.

Thank you for following along with this journey, and I remain committed to sharing insights and updates as my trading strategy evolves. As always, please feel free to reach out with any questions or comments.

Other posts related to this particular position and scrip, if any, will be attached underneath. Do check those out too.

Disclaimer : The analysis shared here is for informational purposes only and should not be considered as financial advice. Trading in all markets carries inherent risks, and past performance is not indicative of future results. It’s essential to conduct your own research and assess your risk tolerance before making any investment decisions. The views expressed in this analysis are solely mine. It’s important to note that I am not a SEBI registered analyst, so the analysis provided does not constitute formal investment advice under SEBI regulations.