Stock to buy: Shivalik Bimetal share price jumps 10% amid range breakout; Anand Rathi forecasts 26% more upside

Shivalik Bimetal Controls share price jumped over 10% on Friday led by strong demand and high volumes. Around 9 lakh equity shares of Shivalik Bimetal Controls changed hands on July 12 as against its one week average trading volumes of 2 lakh shares.

Brokerage firm Anand Rathi is bullish on Shivalik Bimetal shares as the stock has seen a decent range breakout with increased volumes. The brokerage firm has a ‘Buy’ call on Shivalik Bimetal shares with a target price of ₹785 per share, implying an upside of 26% from Thursday’s closing price. It advises to place a stop loss of ₹545. The time horizon for the trade is 12 months.

After a decent crack in the month of August 2023, the Shivalik Bimetal shares underwent consolidation within the range of ₹620 - ₹480.

“Recently we witnessed a range breakout in the stock along with a rise in volumes. The momentum oscillators on the weekly scale are positively poised with a breakout in RSI above 60 mark. Thus, we advise traders to accumulate Shivalik Bimetal Controls in the range of ₹630 - 620 with a stop loss of ₹545 on closing basis for an upside target of ₹785,” Anand Rathi said in its special stock pick report.

Shivalik Bimetal share price has rallied over 12% in one week and more than 20% in one month. The stock is up over 22% year-to-date (YTD). While Shivalik Bimetal shares has remained largely flat in one year, it has given multibagger return of more than 730% in the past three years.

About Shivalik Bimetal Controls

Shivalik Bimetal Controls is specialized in joining materials through various methods. The company manufactures thermostatic bimetal / tri metal strips, components, spring rolled stainless steels, electron beam welded shunt materials, among many other industrial products.

The company holds a prominent position in the domestic market in shunt resistors due to its technology moat in Electronic beam welding (EBW) machines. It is poised to benefit from shunt resistors from both domestic and export markets due to adoption of smart meters and electric / hybrid vehicles, Anand Rathi said.

In the automobiles division, Shivalik Bimetal has been majorly an export player.

Going ahead, Shivalik Bimetal Controls is expected to gain export market share in shunts and resistors coupled with focus on electrical contacts, the brokerage firm said.

At 10:30 am, Shivalik Bimetal Controls shares were trading 7.80% higher at ₹672.35 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.