Bharat Dynamics shares zoom 47% in a month; is it time to book profit?
Bharat Dynamics share price: The stock was last seen trading 5.97 per cent lower at Rs 1,451.90. At this price, it has gained 47.21 in the past one month and 68.24 per cent on a year-to-date (YTD) basis.
- May 28, 2024,
- Updated May 28, 2024 3:07 PM IST
Shares of Bharat Dynamics Ltd (BDL) tanked as much as 7.24 per cent to hit a low of Rs 1,432.35 in Tuesday's trade. The stock was last seen trading 5.97 per cent lower at Rs 1,451.90. At this price, it has gained 47.21 in the past one month and 68.24 per cent on a year-to-date (YTD) basis.
Despite the mentioned rise, the counter has slipped 12 per cent from its adjusted 52-week high of Rs 1,650, a level seen a couple of sessions earlier on May 24 when it traded stock-split in a 1:2 ratio.
On the rationale behind the stock split move, BDL said it was to comply with Department of Investment and Public Asset Management (Dipam) guidelines on capital restructuring for encouraging wider participation of small investors and enhancing liquidity of the equity shares of the company. The defence PSU is scheduled to come up with its quarterly results on May 30.
An analyst suggested that the stock looked overbought on technical parameters, following a sharp rise in the current month. So, possibility of profit booking can't be ruled out. On the higher side, a decisive close Rs 1,485 level is required for further upside. With that being said, support could be seen at the Rs 1,400-1,350 range.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "BDL has seen a surge of around 50 per cent in the current month. Currently, it has entered into an uncharted terrain, followed by extremely overbought parameters. The possibility of profit booking after the surge should not be ruled out and, in fact, should be considered healthy. On the level-specific front, Rs 1,380-1,350 is likely to cushion upcoming blips, while sacrosanct support lies at the Rs 1,250-1,220 zone. The biases remain bullish, and dips are likely to augur well for the buyers from the short to medium-term time frame."
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "One can consider buying the stock around Rs 1,420-1,430 levels for an expected target price of Rs 1,650. Keep a strict stop loss placed at Rs 1,380."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 1,400 and resistance at Rs 1,485. A decisive close above Rs 1,485 level may trigger a further upside till Rs 1,550. The expected trading range will be between Rs 1,375 and Rs 1,600 for a month."
On BSE, around 1.85 lakh shares changed hands today at the time of writing this story. The figure was lower than the two-week average volume of 2.55 lakh shares. Turnover on the counter came at Rs 27.12 crore, commanding a market capitalisation (m-cap) of Rs 53,398.99 crore.
The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 76.94. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The company's stock has a price-to-equity (P/E) ratio of 55.94 against a price-to-book (P/B) value of 7.90. Earnings per share (EPS) stood at 26.01 with a return on equity of 14.13.
Shares of Bharat Dynamics Ltd (BDL) tanked as much as 7.24 per cent to hit a low of Rs 1,432.35 in Tuesday's trade. The stock was last seen trading 5.97 per cent lower at Rs 1,451.90. At this price, it has gained 47.21 in the past one month and 68.24 per cent on a year-to-date (YTD) basis.
Despite the mentioned rise, the counter has slipped 12 per cent from its adjusted 52-week high of Rs 1,650, a level seen a couple of sessions earlier on May 24 when it traded stock-split in a 1:2 ratio.
On the rationale behind the stock split move, BDL said it was to comply with Department of Investment and Public Asset Management (Dipam) guidelines on capital restructuring for encouraging wider participation of small investors and enhancing liquidity of the equity shares of the company. The defence PSU is scheduled to come up with its quarterly results on May 30.
An analyst suggested that the stock looked overbought on technical parameters, following a sharp rise in the current month. So, possibility of profit booking can't be ruled out. On the higher side, a decisive close Rs 1,485 level is required for further upside. With that being said, support could be seen at the Rs 1,400-1,350 range.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "BDL has seen a surge of around 50 per cent in the current month. Currently, it has entered into an uncharted terrain, followed by extremely overbought parameters. The possibility of profit booking after the surge should not be ruled out and, in fact, should be considered healthy. On the level-specific front, Rs 1,380-1,350 is likely to cushion upcoming blips, while sacrosanct support lies at the Rs 1,250-1,220 zone. The biases remain bullish, and dips are likely to augur well for the buyers from the short to medium-term time frame."
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "One can consider buying the stock around Rs 1,420-1,430 levels for an expected target price of Rs 1,650. Keep a strict stop loss placed at Rs 1,380."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 1,400 and resistance at Rs 1,485. A decisive close above Rs 1,485 level may trigger a further upside till Rs 1,550. The expected trading range will be between Rs 1,375 and Rs 1,600 for a month."
On BSE, around 1.85 lakh shares changed hands today at the time of writing this story. The figure was lower than the two-week average volume of 2.55 lakh shares. Turnover on the counter came at Rs 27.12 crore, commanding a market capitalisation (m-cap) of Rs 53,398.99 crore.
The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 76.94. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The company's stock has a price-to-equity (P/E) ratio of 55.94 against a price-to-book (P/B) value of 7.90. Earnings per share (EPS) stood at 26.01 with a return on equity of 14.13.