Intellect Design shares dive 16% post Q4 results; technical analysts turn 'bearish'

Shares of Intellect Design Arena Ltd fell sharply in Friday's trade after the company recorded a drop in its fourth-quarter (Q4 FY24) earnings. The stock slumped 15.52 per cent to hit a day low of Rs 864.35 over its previous close of Rs 1,023.15.

The company said its profit after tax (without considering one-off exceptional item of MAT credit write-off of Rs 12.51 crore during the quarter) stood at Rs 85 crore in Q4 FY24 as against Rs 91 crore in the year-ago period. Total revenue for Q4 FY24 came at Rs 612 crore from Rs 621 crore in the corresponding period last year.

EBITDA (Earnings before interest, taxes, depreciation, and amortization) for Q4 FY24 was at Rs 137 crore compared to Rs 143 crore in the same period a year ago.

Technical analysts largely suggested that the counter looked 'weak' on daily charts. Support will be seen at Rs 864 level.

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "The stock is looking weak on daily charts and it can slip towards Rs 820 level. Resistance will be at Rs 910."

AR Ramachandran from Tips2trades said, "Intellect Design looks bearish on charts with strong resistance at Rs 948. A daily close below support of Rs 864 could lead to target of Rs 800 in the near term."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 864 and resistance at Rs 950. A decisive close above Rs 950 level may trigger a further upside till Rs 995. The expected trading range will be between Rs 830 and Rs 1,000 for a month."

As of March 2024, promoters held a 30.35 per cent stake in the company.