Shares of Spandana Sphoorty Financial Ltd continued their strong recovery mode for the second consecutive session in Wednesday's trade. The stock climbed 15.18 per cent to hit a day high of Rs 463.90. At this price, it has gained 37.90 per cent in just two back-to-back trading days. That said, the scrip has ascended by 51.85 per cent from its record low value of Rs 305.50, a level seen on December 26 last year.
"The counter has seen a sharp correction and there is a sign of bottoming out after one year. It has surged around 35 per cent this week, backed by large volume. This kind of movement portrays a positive development. Aggressive traders can accumulate the counter. On the higher end, immediate resistance is placed around Rs 550-600-odd levels. Support is placed around Rs 400," Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One told Business Today.
For short-term trade, Rs 600 could be the expected target with a stop loss placed at Rs 400, Krishan added.
Spandana's stock saw high trading volume on BSE today as around 6.03 lakh shares changed hands at the time of writing this story. The figure was higher than the two-week average volume of 1.23 lakh shares. Turnover on the stock came at Rs 27.10 crore, commanding a market capitalisation (m-cap) of Rs 3,235.83 crore.
The scrip traded higher than the 5-day, 10-, 20-, 30-day and 50-day simple moving averages (SMAs) but lower than the 100-day, 150-day and 200-day SMAs. The stock's 14-day relative strength index (RSI) came at 74.86. A level below 30 is defined as oversold while a value above 70 is considered overbought.
To recall, the stock was under severe pressure due to a deterioration in the microfinance institution's (MFI's) asset quality and profitability in H1 FY25. The company's collections were significantly impacted, resulting in a deterioration in its consolidated gross stage 3 (GS3) loans to 5.3 per cent as of September 2024 (Q2 FY25) as against 1.7 per cent in March 2024 (Q4 FY24).
As per BSE, the company's stock has a price-to-equity (P/E) ratio of 32.69 against a price-to-book (P/B) value of 0.84. Earnings per share (EPS) stood at 12.32 with a return on equity (RoE) of 2.56. Promoters held a 55.83 per cent stake in the MFI.