Hindustan Foods shares jump 15% amid heavy volumes; here's what tech charts hint

Shares of Hindustan Foods Ltd rose sharply in Monday's deals amid heavy trading volumes. The stock today surged 14.93 per cent to hit a day high of Rs 594 over its previous close of Rs 516.85. Around 1.16 lakh shares changed hands today on BSE, which was way more than the two-week average volume of 12,000 shares. Turnover on the counter stood at Rs 6.68 crore, commanding a market capitalisation (m-cap) of Rs 6,411.68 crore.

At today's high price of Rs 594, the stock traded 20.71 per cent lower from its 52-week high of Rs 749.15, a level seen on December 5, 2022. Yet, the scrip has gained 72.57 per cent from its one-year low of Rs 344.21, hit on July 1 last year.

The company's shareholders have approved a resolution to re-appoint Ganesh T Argekar as whole-time director and executive director of the company. They also gave nod to the renumeration payable to him.

Technical analysts said the stock looked 'bullish'. Support on the counter could be seen at Rs 560.

"The counter is looking strong on technical parameters and the upward trend is well supported with robust volumes. Also, a percentage of the company's profit used for the buyback of equity shares has a favourable effect on its share price. The momentum indicators are suggesting a target of Rs 580 levels in near term," said Ravi Singh, Vice-President and Head of Research at Share India.

"The stock looks bullish on the daily charts with strong support at Rs 560. A daily close above resistance of Rs 579 could lead to target of Rs 632 in the near term," said AR Ramachandran from Tips2trades.

"The company's financials are good. It had delivered 47 per cent returns (year-on-year) to its investors. This stock is looking bullish. One can hold it further for upcoming targets between Rs 640 and Rs 800. Stop loss should be placed at Rs 492," said VLA Ambala, Research Analyst at Stock Market Today.

The counter's 14-day relative strength index (RSI) came at 59. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 90.32. It has a price-to-book (P/B) value of 15.65.

The scrip has a one-year beta of 0.88, indicating low volatility.

Hindustan Foods is primarily engaged in the business of contract manufacturing of fast-moving consumer goods (FMCG) products comprising primarily of home care, personal care, foods and refreshments, packing of tea and job working of shoes. Its product categories include food and beverages, home care, beauty and personal care, health and wellness, pest control, and leather, sportswear and accessories.

Meanwhile, Indian equity benchmarks extended their record run today, led by gains in metals, banks, financials, consumer goods and energy stocks.

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