The stock has run up 47% in the last month. Analyst cautions that recent gains may trigger a short-lived retracement phase.
Tilaknagar Industries shares surged nearly 10% intraday on Tuesday on the back of solid June quarter earnings. At the time of writing, the shares were trading 4% higher.
Q1 sales rose 31% to ₹409 crore, showing strong demand momentum. Meanwhile, net profit surged 121% from ₹40.1 crore to ₹88.5 crore, driven by margins.
The board has also approved a capex of ₹25 crore to increase bottling capacity from 6 lacs to 36 lacs cases per annum.
SEBI-registered analyst Vatsal Khemka noted that it’s a fundamentally strong quarter. On its technical charts, the stock is likely to form an open-high candle or a bearish candle if the high of ₹513 is not breached, which could trigger short-term profit booking.
Since the stock has already delivered a sharp move in July, a retracement/profit booking phase can be expected, according to him.
Trade Call
Khemka has suggested a swing trade on Tilaknagar Industries for a target price of ₹400 with a stop loss of ₹555.
In recent news, Tilaknagar Industries is set to acquire Imperial Blue Business Division from Pernod Ricard for 413 million euros. The shares have rallied 47% in the last one month.
What Is The Retail Mood?
However, data on Stocktwits shows that retail sentiment has been ‘bearish’ since the end of July.
Tilaknagar Industries shares have risen 17% year-to-date (YTD).
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