Bombay Dyeing & Manufacturing Company Ltd shares surged in Friday's trade, extending their gains for the fourth consecutive session. The stock jumped 12.82 per cent to hit a 52-week high of Rs 176.95 over its previous close of Rs 156.85. Turnover on the counter came at Rs 31.30 crore, commanding a market capitalisation (m-cap) of Rs 3,461.52 crore. The scrip has turned into a multibagger on a year-to-date (YTD) basis and rallied around 110 per cent.
The company has recently signed a deal with Goisu Realty Pvt Ltd (a subsidiary of Sumitomo Realty & Development Company) and transferred its land in Worli, Mumbai, for a total consideration of Rs 4,675 crore.
"The company has received the consideration of about Rs 4,675 crore and the proceeds realised shall be used for repaying loans and the balance thereof invested in approved securities for future developments," it stated.
On technical setup, support on the counter could be seen at Rs 157. And, resistance may be found around Rs 188-200 levels.
DRS Finvest founder Ravi Singh said, "Bombay Dyeing received about Rs 4,675 crore after selling a land parcel in Mumbai's Worli. This development has impacted the stock price in a positive way with a strong uptrend. The stock price of Bombay Dyeing may touch the levels of Rs 200 in coming days."
AR Ramachandran from Tips2trades said, "Bombay Dyeing looks bullish but also overbought on daily charts. Investors should be booking profits at current levels as a daily close below support of Rs 157 could lead to target of Rs 138 in the near term. Next higher resistance will be at Rs 188."
The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 69.44. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 5.79 against a negative price-to-book (P/B) value of 2.54.
The stock has a one-year beta of 1.25, indicating high volatility.
In a separate development, Wadia Group's flagship entity also witnessed a spike in its share price today. Bombay Burmah Trading Corporation Ltd's stock soared 20 per cent to scale its one-year high price of Rs 1,420.50.
(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)
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