270% rally in less than seven months; is more steam left in this multibagger PSU stock?

Shares of ITI have been on a roll for investors. The state-run player has delivered multibagger returns to investors in a little more than a month. The stock has delivered exception gains to investors in different time frames to investors, attracting investors who have missed the bus.

The stock soared another 9 per cent during Tuesday's trading session to hit a new 52-week high at Rs 318.45, before giving up gains marginally, as the company's market capitalization topped Rs 30,000 crore-mark. The scrip had settled at Rs 291.65 in the previous trading session on Monday.

The stock has zoomed about 270 per cent from its 52-week low at Rs 86.50 in March 2023, while the stock has gained almost 200 per cent in the last three-months period. The stock is up about 550 per cent from its covid-19 lows below Rs 50 levels.

ITI recently announced its successful development of branded laptops and micro-PCs under the name 'Smaash', which has grabbed a lot of attention and interest from investors. This move signaled the company's intentions to foray into the competitive market of laptop manufacturing in India.

Bengaluru-headquartered ITI, formerly known as Indian Telephone Industries, is a central public sector undertaking in India. It is under the ownership of the Department of Telecommunications. It has multi-locational electronic assembly and mechanical manufacturing facilities.

Technical analysts have mixed views on the stock. A few suggest investors buy the counter considering the ongoing momentum and more upside in the future. On the contrary, others suggest them to avoid any fresh entry in the heated counter and book profit after the recent rally.

ITI has already given 166 per cent return in just the last couple of months and currently placed at Rs 314 mark, said Jigar S Patel - Senior Manager - Technical Research Analyst, Anand Rathi Shares and Stock Brokers.

"On the indicator front, on a daily scale, the ADX line is way above both the DMI's, which might call for some cooling off in the coming few weeks. As of now, fresh longs are not advised. If already bought, then book profit in the zone of 310–330," he added.

IT has witnessed a big run up in the last one month with the indicators hovering near the highly overbought zone and has breached all the targets as of now, said Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher.

"Some cooling off is anticipated with near term support lying near Rs 275 zone and only a decisive breach below Rs 255 zone shall weaken the trend. On the upside has further potential till Rs 345-350 levels if the strength sustains," she added.

On the other hand, VLA Ambala, a SEBI Registered Research Analyst from Stock Market Today has suggested to 'buy' ITI around Rs 280 and hold for a mid-term target ranging from Rs 330 to 550, with a stop loss at Rs 175.

 

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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