Triveni Turbine Ltd has rebounded more than 100% in the past year from the 25% rise seen in the Nifty50 over the same period, but the rally may not be over yet as experts see another 60% gain over the next 6 months. on the basis of a technical break.
The company with a market capitalization of over Rs 6,300 cr hit a 52-week high of 229 on November 11 and then the trend reversed. The stock fell to Rs 157 on November 29 and then rebounded.
The title evolved in a range of 30 points between November and January. A strong rally on January 14th confirmed a range breakout on the daily charts which was accompanied by strong volumes.
It’s a good buy on falling stocks and investors can hold the stock for a potential target of Rs 325 over the next 6 months, translating to over 60% upside from Rs 199 recorded on January 18.
Technically, the stock is trading well above the short and long term moving averages of 30, 50, 100 and 200-DMA.
In terms of shareholding, foreign investors increased their stake from 14.5% in the September quarter to 16.11% in the December quarter, according to Trendlyne data.
However, mutual funds reduced their stake from 13.05% in the September quarter to 12.38% in the December quarter, the data showed.
Consensus recommendations from 3 analysts for Triveni Turbine are a buy, Trendlyne data showed. The company is an original equipment manufacturer of steam turbines in India and is also a pioneer in steam turbine maintenance, steam turbine solutions, supply of steam turbine spare parts, etc.
Triveni Turbine Ltd. is a leading manufacturer of industrial steam turbines, with a dominant market share of more than 60% in India, the company’s website said.
More than 5,000 steam turbines supplied by Triveni have been installed in 20 industries in more than 70 countries, including Europe, Africa, Central and Latin America, Southeast Asia and the countries of the SAARC.
Technically, the stock price started its rise from 107 (Aug 2021) to 229 (Nov 21), creating a series of higher lows.
“A technical correction in the form of profit booking followed and the stock hit a low of 158.6 on November 21. With a series of higher lower formations, the stock traded in a range from 155 to 195 price zone from November 21 to January 2022,” Bharat Gala, President – Technical Research, Ventura Securities Ltd, said.
“Recently, the stock has been giving range breaks and hitting a high of 204 accompanied by support volumes. The KST, demand index and MACD indicator suggest possible upside,” he said. .
Gala further added that the possible target is 325. If the stock price corrects lower, the buy levels are (193-187)-181-(176-172). A stop loss to observe in the trade is 162.
(Disclaimer: Opinions/suggestions/advice expressed here in this article are investment experts only. Zee Business suggests its readers consult their investment advisors before making any financial decisions.)