What should traders do with this midcap FMCG stock that has hit a fresh all-time high?

What should traders do with this midcap FMCG stock that has hit a fresh all-time high?

Indian Market
by 5paisa Research Team Last Updated: 2022-12-08T22:15:09+05:30

The stock of Godfrey Phillips India has soared nearly 7% amid strong buying interest.

The broader market has once again shown a resilient performance against the weak global cues as strong buying sentiment emerges in quality midcap and smallcap stocks. The FMCG stocks have seen fresh buying interest from investors lately as many key stocks observed a sharp rise in volumes. One such stock is Godfrey Phillips India (NSE Code: GODFRYPHLLPS), which has soared nearly 7% amid strong buying sentiment.

Godfrey Phillips India primarily works in the manufacturing and sale of cigarette and tobacco products with many iconic cigarette brands under their belt. With a market capitalisation of about Rs 10,000 crore, it is one of the fastest-growing companies in its sector. In its recent quarterly results, the company has posted astonishing results as revenue jumped 55% YoY to Rs 1191.20 crore while net profit rose 71% YoY to Rs 175 crore as against Rs 102 crore in its corresponding period last year.

Technically, the stock has registered a strong price volume breakout from its consolidating pattern with massive volumes. The volume is found to be greater than the 30-day and 50-day average volume. With this, it has hit a fresh all-time high of Rs 1919.90 level on the NSE. All of its key moving averages are in a strong uptrend and justify bullishness across all timeframes. The 14-period daily RSI (71) lies in the super bullish zone and indicates strong strength in the stock. The OBV is at its peak and indicates strong buying activity. The KST and TSI indicators also favour bullishness. In a nutshell, the stock is technically very strong and is expected to trade higher in times to come given such positivity.

On a YTD basis, the stock has already generated about 70% returns to its shareholders. Traders should keep a close eye on this stock for upcoming trading sessions given its strong technical aspects!


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