Multibagger Birlasoft shares trimmed gains to 38% in two years; what should investors do?

Shares of multibagger Birlasoft Ltd have trimmed gains in the last two years. The IT stock clocked an increase of just 38% during the period against 96% gains in the last six months. The benchmark Sensex rose 18.67% in two years. Birlasoft shares, which closed at Rs 479.65 on December 10, 2021, rose to a record high of Rs 669.80 today. The stock rose 1.53% in the current session against the previous close of Rs 659.70 on BSE.

Total 0.28 lakh shares of the firm changed hands amounting to a turnover of Rs 1.84 crore on BSE. Market cap of the firm rose to Rs 18, 287 crore on BSE.

The multibagger IT stock fell to a 52-week low of Rs 250.35 on February 3, 2023. The stock clocked multibagger returns of 231.25% in three years and 123% this year.

In terms of technicals, the relative strength index (RSI) of the stock stands at 78, signaling it's trading in the overbought zone. Birlasoft stock is trading higher than the 10 day, 20 day, 50 day, 100 day and 200 day moving averages.

Also read: Birlasoft shares rose 97% in six months but overbought on charts; what's next? 

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, “The stock has rallied quite significantly indicating a strong uptrend maintaining above the important 100 period MA and has next target visible till Rs 695-700 levels as per the trend-based Fibonacci tool. The near term support would be Rs 620 zone below which the bias can turn little bit weak.”

Abhijeet from Tips2trades said, "Birlasoft looks bullish & extremely overbought on the Daily charts with next resistance now at 691. Investors should book profits at current levels as a Daily close below support of 630 could lead to a target of 539 in the near term."

Birlasoft stock has a one-year beta of 0.3, indicating very low volatility during the period.

The IT company reported a 26 per cent rise in profit after tax (PAT) to Rs 145 crore for the September 2023 quarter against a profit of Rs 115 crore in the same period last year. Revenue from operations in the September 2023 quarter rose 9.8 per cent to Rs 1,309 crore against Rs 1,192 crore in the year-ago period.

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Birlasoft is engaged in providing information and communication, computer programming, consultancy, and related activities. The company provides a range of services, which includes digital and enterprise technologies and services.

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

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