Dilip Buildcon shares jump 20% to hit one-year high; will this strong upside move sustain?

Shares of Dilip Buildcon Ltd rose sharply on Wednesday to scale their one-year high level. The stock surged 20 per cent to hit a 52-week high of Rs 460.50. At this price, the multibagger scrip has rallied 188.35 per cent from its one-year low price of Rs 159.70, a level seen on May 19 last year.

The infrastructure company said its PAT (profit after tax) increased by 19.87 per cent to Rs 95.3 crore in the third-quarter (Q3 FY24) against Rs 79.5 crore in the year-ago period. Revenue from operations rose 8.08 per cent to Rs 2,571.1 crore in Q3 FY24.

On technical setup, support on the counter could be seen at Rs 420, followed by Rs 404, 400 and 380 levels. Immediate resistance may be found at Rs 465 and decisive breach above the said zone is required for further upside.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "The stock underwent a time-wise corrective phase after a massive run from Rs 160 to Rs 444 in the current fiscal year. At present, the undertone remains bullish and a breakthrough beyond the mentioned level on the higher end could propel the counter toward the Rs 500 zone on an intermediate basis. On the flip side, a series of support is placed from Rs 400-380-odd zone and till it sustains above the same, there is no sign of caution in the counter."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 420. It may see a further upside till Rs 465. Expected trading range will be between Rs 400 and Rs 470 for a month."

AR Ramachandran from Tips2trades said, "Dilip Buildcon looks bullish on daily charts. Next near-term target will be Rs 483. Support will be at Rs 404."

DRS Finvest founder Ravi Singh said, "The stock may see Rs 465 level in the near term. Keep stop loss placed at Rs 420."

Dilip Buildcon is one of the leading full-service infrastructure companies with construction capabilities in roads and bridges, mining water, sanitation, sewage, dams, irrigation, industrial, commercial and residential buildings.

(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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