BSE Code ........ 532864 | Target 1 .... ₹97 | Target 2 .... ₹101 I CMP : ₹86
The largest producer of ductile iron castings and grey iron castings caters to commercial vehicle and tractor segments. The company has recently invested Rs 79 crore for the first phase of a greenfield project for manufacture of iron castings in Andhra Pradesh. The plant overall holds capacity of 54000MT, of which 18000MT is expected to get utilised in the first phase. The company has witnessed sales recovery since FY2013 and, since then, it has been gradually yet consistently posting revenue and PAT growth, recently at 2.5% and 6.6%, respectively.
The stock, after registering low of Rs 13.85 in the month of August 2013, has been in an uptrend and registered a high of Rs 76.60 in the month of January 2016. Since then, the stock price oscillated in a price band of about Rs 42-81.80. Recently, the stock has witnessed breakout from the 22- month base formation, which signals resumption of upward momentum. The up move in the current month has been on the back of strong participation, as the trading volumes halfway in the current month have touched the mark of 41 lakh shares, which is higher than the average volume of the stock. Additionally, the monthly price action halfway in the current month had formed the biggest bull candle since December, 2015, which suggests dominance of the bulls.