The shares have delivered solid returns in the last three years, too, with a 2150% rise, and gained about 400% in the same period.
Shivalik Bimetal Controls is a company specialised in the joining of material through various methods such as diffusion bonding, electron beam welding, solder reflow and resistance welding.
It has a market capitalisation of about Rs 3,204 crore and an EPS of 13.22 on a trailing twelve month (TTM) basis. The stock is currently trading at a PB of 12.57.
According to the shareholding pattern available with the exchanges, promoters own majority of the stake at 60.61%, while the remianing 39.39% lies with the public shareholders.
Among the public shareholders, mutual funds and foreign portfolio investors don’t have any stake, while retail investors, with 25% stake, are betting big on the company.
Shivalik Bimetals reported an 18% jump in first-quarter profit to Rs 20.23 crore, while revenue from operations jumped 16% to Rs 113.07 crore.What should investors do?
Analysts advise existing investors to hold the stock, while fresh buys can be made until the stock is above Rs 510.
“On the daily chart, the stock saw a sharp correction after reaching a high of Rs 750 in mid July. It almost tested the 200-day SMA (Rs 496) by making a low of Rs 501 and has bounced to the current level of Rs 558. The stock is still outperforming the benchmark indices. However, the momentum indicators viz RSI do not show any positive pattern. Hence, one can hold the stock at CMP with a stop loss of Rs 496 for a target Rs 670–730 levels in a couple of weeks,” said Mileen Vasudeo, Sr Technical Analyst at Arihant Capital.
“After taking strong support from 200 dema near 510 the stock has shown a decent 61.8% retracement from recent rally. Now the stock is showing considerable strength also. Now at the levels of major resistance at 600, if it is able to sustain above it then it can even touch a new high. So until it is trading above 510 then every fall is a buying opportunity for a target of Rs 597,” Vaibhav Kaushik, Research Analyst, GCL Broking.
(With data inputs from Ritesh Presswala)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)