ICICI Securities see a strong upside in 3 months of holding for this metal stock

With a market valuation of ₹5,072.04 Cr, Kirloskar Ferrous Industries Ltd. is a mid-size business that operates in the metals and mining sector. One of the firms in the pig iron and iron castings industries with the strongest growth is Kirloskar Ferrous Industries Limited. The brokerage firm ICICI Securities sees a strong upside in the stock in a target frame of 3 months only and for this, the brokerage has set a buying range of ₹354-362, a target price of ₹418.00 and a stop loss to be maintained at ₹318.00. The stock has given a breakout from fifteen months of consolidation, signalling strength and offering fresh entry opportunities, said the brokerage.

The research analysts of ICICI Securities Ltd said “Nifty Metal index registered a new high on Monday continuing its bull trend in the new year. Within midcap companies, Kirloskar Ferrous has been an outperformer. We expect the outperformance to further improve in coming months. The share price remained resilient within the midcap pack over the past few weeks as despite broader market decline, the stock gave a strong breakout from 15 month’s consolidation ( ₹310-185) indicating structural improvement and resumption of primary uptrend.”

They further claimed that “Breakout from 15 month range is validated by strong volumes highlighting increased participation and augurs well for sustainability of uptrend. Going ahead, we expect it to maintain positive bias & head towards ₹418 as it is measuring implication of range breakout (( ₹310-185). Among oscillators, MACD is diverging from nine period’s average, indicating strong momentum from a medium term perspective.”

The shares of Kirloskar Ferrous Industries Ltd closed today on the NSE at ₹367.00 apiece level, up by 0.95% from the previous close of ₹363.55. The stock recorded a total volume of 205,184 shares compared to the 20-Day average volume of 383,209 shares. The stock has produced a multibagger return of 502.13% over the past five years, and a multibagger return of 424.53% during the past three years. The stock has appreciated 75.64% over the past year, and 94.18% during the past six months. The stock had touched a 52-week-high of ₹371.00 on (28-December-2022) and a 52-week-low of ₹183.20 on (25-January-2022).

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.