Top Buzzing stock: RHI Magnesita

resr 5paisa Research Team 13th December 2022 - 06:17 am
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RHI Magnesita is engaged in the business of manufacturing and selling refractories and monolithic.

With a market cap of Rs 6250 crore, RHI Magnesita is one of the strongest midcap companies if its sector. The company has reported an increase in revenue and net profits on an annual basis. Over the last five years, the company has reported double the average industrial revenue, which demonstrates its strong business.

The promoters of the company believe in the strong business fundamentals of the company, which is evident from the fact that they hold about 65% stake in the company. The institutional investors, too, hold about 15% stake while the rest is being held by the retail portion.

Last year, the stock has outperformed the broader markets as it delivered about 61% returns to its shareholders. In the short span of just one month, the stock has reported a 10% increase in its share value, thus, outperforming most of its peers and sector.

The stock, after hitting its all-time high of Rs 407 on 13 September had corrected about 20%, followed by a recovery which saw the stock to be rising above 20-DMA. The stock formed a symmetrical triangle-like pattern from which it has given a breakout. It is up over 5% today, along with huge volume. All the short-term and long-term moving averages are sloping upward, which indicates that the stock is in a strong uptrend for the medium term. The RSI has also entered the super bullish territory while MACD has given a fresh buy signal. Moreover, the Elder Impulse System indicates the bullish nature of the stock. The bullish bias of the technical indicators is validated by the rising volumes, which are above the 10 and 30-day average volume.

With such a strong uptrend, the stock has the potential to test its all-time high once again.

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