Sharda Cropchem shares jump 8% after Q3 results, dividend announcement

Shares of Sharda Cropchem rose sharply in Wednesday's trade after declaring December quarter (Q3) results and interim dividend. The stock jumped 8.16 per cent to hit a day high of Rs 530 over its previous close of Rs 489.10. At today's high price of Rs 530, the scrip has gained 11.90 per cent in five straight sessions.

Sharda Cropchem's net profit rose 6.07 per cent to Rs 108.40 crore in Q3 FY23 as against Rs 102.20 crore during the same period a year ago. Sales rose 15.63 per cent to Rs 1,017.30 crore in Q3 as against Rs 879.81 crore during the previous quarter that ended December 2021.  In Q2 FY23, the company recorded a profit of Rs 12.09 crore.

"A beat both in terms of QoQ and YoY results has expectedly led to a sharp uptrend in Sharda Cropchem stock price today," said AR Ramachandran from Tips2trades.

In an exchange filing, the company said, "The Board of Directors considered and declared interim dividend at the rate of Rs 3 per equity share of a face value of Rs 10 each for the financial year 2022-23."

The record date of interim dividend would be February 7 and the dividend would be paid or dispatched on or before February 23.

Around 32,000 shares changed hands today on BSE, which was nearly three times higher compared to Sharda Cropchem's two-week average volume of 11,000 shares. Turnover on the counter stood at Rs 1.63 crore, commanding a market capitalisation (m-cap) of Rs 4,694.17 crore.

There were 10,002 sell orders on BSE, against buy orders of 8,974 shares.

Technical view

Osho Krishan, Senior Analyst - Technical and Derivative Research at Angel One, said, "Sharda Cropchem has witnessed strong traction post the breakout above the Rs 500 zone, which was even backed by robust volumes. On the technical parameters, the stock has seen a positive crossover and is firmly placed above the major short and medium-term moving averages. However, the 200-SMA (placed around Rs 540), which even coincides with the previous support zone, could now act as the major hurdle for the counter. A decisive breakout beyond the same could trigger fresh longs in the counter. Meanwhile, the support is placed around Rs 500, followed by the cluster of moving averages of the Rs 470-odd zone.

"A daily close above resistance of Rs 531 could lead to targets of Rs 564-580. Strong support will be at Rs 502," Tips2trades' Ramachandran said.

The stock was last seen trading higher than 5-day, 20-, 50- and 100-day moving averages but lower than 200-day moving averages.

The counter's 14-day relative strength index (RSI) came at 65.76. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 17.98.

Sharda Cropchem has an average target price of Rs 803.67, Trendlyne data showed, suggesting a potential upside of 54.17 per cent. The stock has a one-year beta of 0.85, indicating low volatility.

Meanwhile, Indian equity benchmarks fell in early deals, dragged by banks, financials, consumer and energy stocks.

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