Share of Balaji Amines has delivered 542 per cent returns to its shareholders in the last 12 months. The share stood at Rs 618.95 on August 3, 2020. It has zoomed to Rs 3,977 today, translating into gains of 542 per cent during the period. In comparison, Sensex clocked 45 per cent in one year.
An amount of Rs 5 lakh invested in this multibagger stock a year ago would have turned into Rs 32.12 lakh today.
The stock has gained 271 per cent since the beginning of this year. It rose 20 per cent to hit a new 52-week high of Rs 3,977 on BSE after the company reported strong earnings for the quarter ended June 2021.
With a market capitalisation of over Rs 11,000 crore, the share of Balaji Amines stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages.
"BALAMINES weekly and monthly momentum indicators are too overbought however the price is not reflecting the same as it continues its upward journey forming higher tops and higher bottoms," Jay Thakkar, VP and Head of Equity Research, Marwadi Shares and Finance Limited told BusinessToday.in.
"The daily momentum has again turned positive which is quite positive for the short term. The stock after providing the golden crossover has been trending higher in an upward sloping parallel channel and the lower end of the channel support is pegged at Rs 2,600 levels whereas the upper end of the channel which is the positional target is pegged at Rs 4,500 which will be the positional target," he noted.
"Since the stock had provided the golden crossover it has always limited its correction till its 50DEMA and it has not closed below those levels. So, every time the stock has come to 50DEMA it has formed a higher base there. This indicates that the 50DEMA is quite an important support for this stock which is now at Rs 2,828 levels," he added.
He further added that the two crucial supports in the short term are Rs 2,828 and Rs 2,600 whereas the positional target will be Rs 4,500 whereas short term target will be Rs 4,100.
According to MarketsMojo, the company has a strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.62 times. Also, along with generating 542% return in the last 1 year, the stock has outperformed BSE 500 in the last 3 years, 1 year, and 3 months.
The technical trend has improved from Mildly Bullish on July 20, 2021, and the stock is technically in a Bullish range now and has generated 21 per cent return since then. Multiple factors for the stock are bullish like MACD, Bollinger Band, KST. However, it noted that the valuation is very expensive right now.
The company reported a net profit of Rs 90.38 crore for the quarter ended June 2021. Profit in the year-ago period stood at Rs 32.96 crore. Revenue from operations grew 16 per cent to Rs 450.68 crore in the June-ended quarter against Rs 222.91 crore a year ago. The EPS has increased to Rs 27.90 in June 2021 from Rs 10.17 in June 2020.
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