BackTechnical pick: Anand Rathi forecasts near-term upside potential for this small-cap stock
As Patel Engineering share price today is ₹59.50 per share, the brokerage is expecting around 15 per cent upside in the scrip.
PremiumBrokerage firm Anand Rathi has chosen small-cap company Patel Engineering as its monthly stock pick. Vijay Kedia backed stock has experienced a decline from ₹64.90 to ₹59.50 per share year-to-date (YTD), marking a decrease of approximately 8.32 per cent during this period.
Yet, according to the Anand Rathi stock research team's assessment, the stock has transitioned beyond its base building phase and is poised to deliver significant upside potential. The brokerage firm assigned a 'buy' recommendation to this small-cap stock, setting a near-term target price of ₹66 per share.
As Patel Engineering share price today is ₹59.50 per share, the brokerage is expecting around 15 per cent upside in the scrip.
“Patel Engineering recently experiencing a significant downturn, is currently hovering around the 56 mark, closely mirroring its 200- day Simple Moving Average (SMA). Despite a recent reversal from a bullish bat pattern, the stock has entered a corrective phase over the past 4-5 trading sessions," said the brokerage firm in its report.
Over the past six months, the stock has seen an increase of more than 16.67 per cent, and over the course of the last year, it has surged by a remarkable 288.89 per cent, on the National Stock Exchange (NSE).
On its advice to the stock market investors in regard to Patel Engineering shares, Anand Rathi's technical report further said, “Interestingly, during this correction, the size of the downward candles has been relatively small, suggesting a potential alleviation of selling pressure. Consequently, there appears to be an opportunity for investors to BUY within the range of 56-58, with an upside target of 66. A prudent approach would involve setting a stop-loss at around 53, based on daily closing prices, to mitigate potential losses."
Infrastructure and construction services company had announced a significant surge in its consolidated net profit to ₹70.2 crore for the quarter ending in December 2023, driven by increased income.
According to the company's filing with the exchange, this marks a substantial increase compared to the ₹19.4 crore net profit recorded during the same period in the preceding financial year 2022-23.
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