Without a doubt, the Indian market has been outperforming most of its peers in the last few weeks. The broader market strength is helping to boost investors’ confidence further leading to increasing demand for many stocks.
While there is no dearth of stocks giving breakouts in today’s session as the benchmark is nearing the 18,000 level, one stock is just beginning to make a move. The company is CE Info Systems Ltd (NS:), popularly known by its brand name MapMyIndia. The company has a market capitalization of INR 7,295 crores and is in the business of offering proprietary digital maps as a service (MaaS), software as a service (SaaS) and platform as a service (PaaS).
In FY22, the company posted the highest ever annual revenue of INR 241.99 crores, up 25.8% from the preceding year’s revenue of INR 192.27 crores and is significantly higher than the pre-pandemic revenue of INR 163.48 crores in FY20. The net income for FY22 stood at INR 87.03 crores, which is also the highest ever. FIIs are also showing an increasing interest in the company as their stake has gone up from 5.57% in March 2022 to 5.6% in June 2022. Mutual fund stake has also risen from 2.62% to 3.01% in the same period.
Image Description: Daily chart of CE Info Systems
Image Source: Investing.com
Today, the share price of MayMyIndia gained 4.73% to INR 1,424, by 1:52 PM IST, and surged past almost 8-month-long falling trendline resistance. This trendline had been tested many times in the past and every time the stock had failed to cross above it. This has improved the reliability and importance of the trendline breakout that has happened today.
The volume for the day so far which is around 362K shares is not very high but higher than the 10-day average of 146K shares. A bigger jump in the volume figure would have further increased the confidence in today’s move. Nonetheless, the stock is looking all set to deliver a good rally from here, especially if the broader markets keep on supporting investors’ sentiments.
As the stock had been trending down for a long time, the upside potential is decent from here. The previous major peak of the stock which is around INR 1,542 would act as immediate resistance and hence would be an ideal level for profit booking for long holders. Above this, the next peak of around INR 1,715 would be the next area of the supply zone.
