Morepen Laboratories Ltd shares continued their strong upward move for the fourth consecutive session in Wednesday's trade. The stock jumped 12.45 per cent to hit its new 52-week high of Rs 92.43. It was last seen trading 12.17 per cent higher at Rs 92.20. At this price, the scrip has gained 55.90 per cent in a month and 87.59 per cent on a year-to-date (YTD) basis.
"Morepen Labs shares have been going up after the recent QIP issue. There are prominent names, such as Bank of America, Samsung and more, that have subscribed to it. At present, there is optimism as the company's fundamental business of healthcare devices has been improving. Investors with a medium- to long-term view can hold on to the stock," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
Last month, the pharma firm successfully completed a Rs 200 crore fundraising through the Qualified Institutional Placements (QIP) route. Marquee global investors like Bank of America Securities Europe (BOFA), Samsung India, Citigroup, Societe Generale, Nomura, BNP Paribas, Morgan Stanley and Eminence were some of the select names that have partnered with Morepen.
"The Indian Medical Devices market is estimated to grow 4.5 times to $50 billion by 2030 from the current size of $11 billion and is expected to reach $250 billion by 2047, as per Invest India estimates. We are preparing to gain a major market share in the point-of-care medical devices sector," said Sushil Suri, Chairman and Managing Director of Morepen Laboratories.
On technical setup, support could be seen at Rs 86 level. "Support will be at Rs 86 and resistance at Rs 92.5. A decisive close above the Rs 92.5 level may trigger a further upside towards Rs 95. The expected trading range will be between Rs 86 and Rs 96 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.
"Morepen Labs looked overbought on daily charts with next resistance at Rs 103. Investors should book profits at current levels as a close below support of Rs 86 could lead to a fall till Rs 67 in the near term," said Sebi-registered research analyst AR Ramachandran.
The scrip traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 79.95. A level below 30 is defined as oversold while a value above 70 is considered overbought.
As per BSE, the stock has a price-to-equity (P/E) ratio of 34.61 against a price-to-book (P/B) value of 5.07. Earnings per share (EPS) stood at 2.37 with a return on equity (RoE) of 14.64.