Netweb Technologies shares zoom 28% in 5 sessions; time to book some profits?

Shares of Netweb Technologies India Ltd extended their sharp upward run for the fifth straight session on Monday. The stock surged 9.67 per cent to hit a day high of Rs 2,340. At this price, it has gained 28.16 per cent in five trading days.

On the earnings front, Netweb Tech -- a provider of servers, storage, backup and HPC solutions -- reported a 100 per cent year-on-year (YoY) jump in profit after tax (PAT) to Rs 30.48 crore for the June 2025 quarter (Q1 FY26), up from Rs 15.24 crore in the same quarter last year. Operating income more than doubled to Rs 301.21 crore, compared to Rs 149.32 crore in the year-ago period.

Earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter surged 127 per cent to Rs 44.8 crore, against Rs 19.7 crore reported in the corresponding quarter of the previous year.

Technically, the stock continued to show a bullish trend on charts, although one analyst advised booking profits due to its overbought condition.

According to Sebi-registered independent analyst AR Ramachandran, "Netweb Tech stock price is bullish but overbought on daily charts with next resistance at Rs 2,563. Investors should be booking profits as a daily close below the support of Rs 2,141 could lead to a downward target of Rs 1,800 in the near term."

Kunal Kamble, Senior Technical Research Analyst at Bonanza, noted that Netweb has recently broken above a key resistance level on strong volumes, signalling robust buying momentum. He has set a target price range of Rs 2,600 to Rs 2,800, with a stop loss at Rs 2,040.

The stock traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 74.24. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The scrip has a price-to-earnings (P/E) ratio of 99.43 against a price-to-book (P/B) value of 28.24. Earnings per share (EPS) stood at 22.86 with a return on equity (RoE) of 28.40. According to Trendlyne data, Netweb Tech has a one-year beta of 1.6, indicating high volatility.

As of June 2025, promoters held a 71.03 per cent stake in the IT firm.