Rs 17 to Rs 105: This electrical stock turned into multibagger in three years; overbought on charts

Shares of multibagger Precision Wires Ltd have turned into multibagger in three years. The electrical stock, which closed at Rs 17.4 on September 4, 2020 rose to a high of Rs 105.70 in the previous session, delivering 506% returns during the period. An amount of Rs 1 lakh invested in Precision Wires stock three years ago would have turned into Rs 6.07 lakh today. In comparison, Sensex has risen 71.39 per cent during the period. The stock fell to a 52-week low of Rs 53.36 on September 28, 2022.     

In the current session, the Precision Wires stock rose marginally to an intraday high of Rs 105.70 against the previous close of Rs 104.35 on BSE. A total of 0.83 lakh shares of the firm changed hands amounting to a turnover of Rs 85.36 lakh on BSE.  At 3:05 pm, the stock fell 3.07% to Rs 101.15. Market cap of Precision Wires slipped to Rs 1803.55 crore on Tuesday.     

The stock has gained 34.22 per cent this year and risen 65.22% in a year.  

In terms of technicals, the relative strength index (RSI) of Precision Wires  stands at 72, signaling the stock is trading in the overbought zone. The stock has a beta of 1.1 in the last one year, indicating high volatility. Precision Wires  shares are trading higher than the 10 day, 20 day, 50 day, 100 day and 200 day moving averages.         

Financial Performance     

Precision Wires logged a 3% percent year-on-year fall in revenue to Rs 802.7 crore for the first quarter ended June 30 against Rs 826.2 crore in the corresponding quarter of the previous fiscal.   

Consolidated profit fell to Rs 16.5 crore in Q1 from Rs 16.8 crore in Q1FY23. Operating profit climbed to Rs 32.4 crore in Q1 against Rs 29 crore in the June 2022 quarter.   

About Precision Wires       

Precision Wires  Limited is engaged in manufacturing of Enamelled Round and Rectangular Copper Winding Wires, Continuously Transposed Conductor(CTC) and Paper/Mica/Nomex Insulated Copper Conductor(PICC) which are used by the electrical/electronics industries. 

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