Tech Check: This consumer power company has strayed from the lineup; the stock is on track to hit a 52-week high
Voltas Ltd. has risen more than 40% over the past year, compared to the 25% rise seen in the Nifty50 over the same period, but the recent breakout seen in the stock on the daily charts could help it push past the October highs.
The mainstream power company with a market capitalization of over Rs 43,000 cr hit a 52-week high of Rs 1,356 on October 19 and then the trend reversed.
The stock took support near 1131 and then rallied, but traded in a tight range of just 100-150 points.
The recent price action has pushed the stock out of the consolidation range, which opens a new target for the stock in the Rs 1500 range over the next 6-9 months, which translates to a rise of more than 15% compared to Rs 1303 recorded on January 14. suggest specialists.
Voltas is engaged in air conditioning, refrigeration, electromechanical projects as an EPC contractor in both domestic and international geographies (Middle East and Singapore) and engineered product services for mining , water management and treatment, construction equipment and textiles. industry.
Voltas is also one of the most reputable engineering solution providers specializing in project management. The company has over 5,000 actively managed client sites across India.
“Voltas is forming a compressor manufacturing joint venture in an effort to bring in a strong technology partner, and the financials of the joint venture are still being worked out. The focus is on self-sufficiency and reducing OEM dependency through own manufacturing under the PLI program,” said Ashish Chaturmohta Director Research, Sanctum Wealth.
“Management has guided the EBIT margin guidance for UCP at 11-12%, with expectations for a gradual recovery in project activity margin,” he added.
Technically, the stock price hit an all-time high of 1357 in October and since then it has been sideways. It consolidated its gains after the upward move and formed a base for the next leg of the rally.
The price took support at a 100-day moving average (green line) and rebounded.
“Price is now showing a breakout within a range of 1280-1145. It has formed a long-term bullish candlestick above the breakout level indicating buying momentum in the security,” Chaturmohta said.
“Relative Strength Index (RSI) gave a positive cross with its average on the weekly chart indicating a strong uptrend is resuming. target of 1500 in the coming in 6-9 months,” he added.
(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.)