The mood of the broader markets turned highly positive in today’s session, all thanks to positive overnight trading in the US. The benchmark index is trading 0.87% up at 17,776, by 9:46 AM IST, with 10 out of the 11 sectoral indices trading in the green zone.
Although there are many stocks that are on investors’ radar as their risk appetite has increased seeing a green sea of numbers across the board, there is one stock is looking all set to resume its uptrend. The company is a famous name from the specialty chemicals space, Alkyl Amines Chemicals Ltd (NS:) which has a market capitalization of INR 15,176 crores and is involved in the manufacturing of organic and inorganic chemical compounds.
The company reported the highest ever revenue of INR 1,556.98 crores in FY22, compared to INR 1,249.39 crores in the previous year which denotes a noticeable growth of 24.62%. This is in line with the company’s yearly revenue growth rate of 25.56% over the last 5 years. The net income for FY22 took a YoY hit of 23.86% to INR 224.89 crores.
The stock trades at a P/E ratio of 67.48, compared to the sector’s average of 13.71, making it somewhat expensive. Peers such as Gujarat Fluorochemicals (NS:) and Aarti Industries (NS:) are trading at a P/E ratio of 46.79 and 23.53, respectively.
Image Description: Daily chart of Alkyl Amines Chemicals with volume bars at the bottom
Image Source: Investing.com
Coming to the daily chart of Alkyl Amines Chemicals, the stock had been making a mild down move from the last few sessions. Looking closely, it was a retracement of the prior up move which is the actual structure of a stock’s price movement. As the current uptrend is already established, the retracement of it also seems to be over now which makes it an ideal candidate for a continuation of the uptrend.
Today, the stock surged 3.85% to INR 3,084 (by 9:57 AM IST), clearing the highs of the last multiple sessions. As the stock is now hovering around the highest level since 19 August 2022, a further rally could help the stock to reach a level of INR 3,226 which was the previous swing high of the broader rally.
Volume for the day is also giving confirmation for the resumption of the uptrend. A total of 50K shares have exchanged hands in less than an hour of trading which is already the highest one-day volume in over a month. On the downside, if the rally fades and the stock falls below the nearest support of INR 2,960, then bulls should get cautious.
