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Small & Midcap Mantra: This newly listed firm can rally another 20% in 3-6 months; here’s why

Technically, the stock is in uptrend, making higher highs and higher lows on the daily chart, experts say.

August 27, 2021 / 01:07 PM IST
 
 
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StoveKraft which made its market debut in February 2021, is poised for fresh highs in the next three to six months, after rising more than 100 percent above the issue price of Rs 385, technical experts say.

The company with a market capitalisation of nearly Rs 2,600 crore hit a 52-week high of Rs 848 on August 3, 2021. After hitting the record high, it witnessed some profit-taking but found support near Rs 733 on August 11 and bounced back.

It tested the support level again on August 23 before rebounding towards Rs 800. Technical experts see the stock heading towards Rs 950 in the next 3-6 months that translates into an upside of about 20 percent from August 25 closing price of Rs 786.

Stovekraft is one of India’s biggest Kitchen appliances maker. It sells cooking appliances under Pigeon and Gilma brands.

Stove Kraft is an emerging play on the Rs 200 billion kitchen appliance industry in India which is growing at 11 percent CAGR with a strong brand presence across mass-market products and fast-expanding distribution capabilities and product/brand portfolio.

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It is the market leader in cooktops and one of the top 5 brands in categories like pressure cookers, rice cookers and non-stick cookware.

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“Technically, the stock is in uptrend making higher highs and higher lows on the daily chart. For the last couple of months stock has been sideways with a positive bias,” Ashish Chaturmohta, Director Research, Sanctum Wealth Management, said.

“Price has moved above the 20-day moving average in high volumes and with bullish long body candle. Relative strength index (RSI) has given positive crossover with its average,” he said.

“Thus, suggesting the stock is resuming its uptrend after forming a base for the next leg of the rally. The stock can be bought at current levels and on dips to 790 with a stop loss of 760 for target 950 in the coming 3-6 months,” says Chaturmohta.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Kshitij Anand is the Editor Markets at Moneycontrol.
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