Coffee Day shares surge 18% today; can they revisit one-year high level?

Coffee Day Enterprises Ltd shares soared 17.71 per cent to scale a day high of Rs 53.45 in Monday's trade. Considering this price, the stock was down 6.23 per cent from its 52-week high price of Rs 57, a level seen on September 14, 2023. Despite the mentioned fall, the multibagger scrip has gained 102.46 per cent from its one-year low level of Rs 26.40, hit on March 28 this year.

On technical setup, support on the counter could be seen at Rs 45, followed by Rs 43 level. On the higher side, resistance may be found in the Rs 53-55 zone. An analyst suggested booking profit at current levels.

AR Ramachandran from Tips2trades said, "Coffee Day is bullish on daily charts with next resistance at Rs 53. A daily close above this resistance could lead to target of Rs 59 in the near term. Support will be at Rs 43."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, "The stock has support around Rs 45 and resistance near 55."

DRS Finvest founder Ravi Singh said one should consider booking profit.

The counter was last seen trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 64.32. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a negative price-to-equity (P/E) ratio of 40 against a price-to-book (P/B) value of 0.32. The scrip has a one-year beta of 0.6, indicating low volatility.

Coffee Day Enterprises is engaged in the trading of coffee beans. The company owns and operates a resort and renders consultancy services. It is also engaged in the coffee business which ranges from procuring, processing and roasting coffee beans to retailing coffee to domestic and overseas customers.

The company has seven subsidiaries such as Coffee Day Global, Tanglin Retail Reality Developments, Tanglin Developments, Giri Vidhyuth (India), Coffee Day Hotels & Resorts, Coffee Day Trading and Coffee Day Econ.

As of June 2023, promoters held a 10.53 per cent stake in the company.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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