Coffee Day shares zoom 13% to hit one-year high; analysts suggest booking profit

Shares of Coffee Day Enterprises Ltd surged 12.76 per cent to scale their fresh one-year high of Rs 66.20 in Tuesday's trade. The stock saw heavy trading volumes today as 19.57 lakh shares were last seen changing hands. The figure was way more than the two-week average volume of 17.99 lakh shares. Turnover on the counter came at Rs 12.11 crore, commanding a market capitalisation (m-cap) of Rs 1,331.94 crore. There were 15,38,988 buy orders against sell orders of 2,69,216 shares.

The company has recently issued clarification in response to a BSE query on share price movment. "The increase in volume of shares of the company is purely due to market conditions and absolutely market driven and the management is in no way connected with any such movement in increase in volume," Coffee Day mentioned.

A couple of analysts suggested that traders should book profits at current levels. That said, one of them said the counter may see Rs 71 level in the near term.

Also read: Coffee Day shares surge 10% to hit one-year high; time to book profit?

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has recently gained significant momentum. With near-term support maintained near Rs 54, the scrip is likely to witness a target of Rs 71 in the coming days."

AR Ramachandran from Tips2trades said, "A decisive close above Rs 59 can push the stock to Rs 68 level. Support will be at Rs 54. Investors should be booking profits at current levels."

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

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 September 2023, promoters held 10.53 per cent 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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