Shares of Coffee Day Enterprises staged a sharp rebound in Tuesday's trade after hitting their one-year low level in the previous session. The stock rose 7.65 per cent today to touch a day high of Rs 32.35 over its previous close of Rs 30.05. The scrip slipped to a 52-week low of Rs 29.56 in intraday deals on Monday. The counter has 47 per cent in a year and 35.69 per cent in 2023 so far.
Around 3.31 lakh shares changed hands today on BSE, which was slightly higher than the two-week average volume of 3.28 lakh shares. Turnover of the company stood at Rs 1.03 crore, commanding a market capitalisation (m-cap) of Rs 652.77 crore. There were 2,20,534 sell orders against buy orders of 1,33,113 shares.
On the technical front, support on the counter could be seen at Rs 29.60, followed by Rs 25 and Rs 24 levels.
"Coffee Day has been under pressure for quite some time now. Technically speaking, it has been consistently trading below the 20-EMA on the daily charts and the structure appears to be weak for the near term. As far as levels are concerned, the support is now placed around the Rs 24-25-odd zone, whereas the strong hurdle is seen around Rs 44-45," said Sneha Seth, Derivatives Research Analyst at Angel One.
"A further sell-off may take place in the near term. The RSI is at the neutral zone whereas the momentum indicators, MACD and short-term MAs are suggesting a bearish trend from current levels. The stock may touch Rs 25 in coming trading sessions," said Ravi Singh, Vice-President and Head of Research, Share India.
"At the current juncture, the stock is trading below the daily, weekly & monthly alligator which is a matter of concern and thus echoing towards a further downside to the Rs 26 level. As of now, no fresh longs are advised," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.
"Coffee Day Enterprises looks very oversold on the daily charts. A close above resistance of Rs 32 could lead to targets of Rs 37-39.65 in the coming days. Support will be at Rs 29.60," said AR Ramachandran from Tips2trades.
The stock was last seen trading lower than the 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 32.12. 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 212.17.
The scrip has a one-year beta of 1.35, indicating high volatility on the counter.
In the third quarter of the current fiscal, the firm reported a loss of Rs 402 crore from Rs 20.47 crore profit a year earlier. However, the company's revenue from operations climbed 32.90% to Rs 243.85 crore in Q3 from Rs 183.49 crore a year earlier.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) recorded a loss of Rs 351.22 crore in Q3 against Rs 35.27 crore profit in the December quarter of the previous fiscal.
Coffee Day Enterprises is engaged in the trading of coffee beans. The company owns and operates a resort and renders consultancy services. It is also engaged in the coffee business which ranges from procuring, processing and roasting coffee beans to retailing coffee to domestic and overseas customers.
As of December 2022, promoters held a 9.59 per cent stake in the company.
Meanwhile, Indian equity benchmarks traded higher in aftgernoon deals, led by gains in banks, financials, consumer durables and energy stocks.
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