Mukand Ltd, a debt laden company mostly working capital debt of around 2100 cr is pushing the price higher for the past 4 months. It seems to be looking to breakout of an ascending triangle with the lows getting pushed higher in this period.
Stock has moved from 100 to 145 respecting the ascending triangle. The volume in this period more visible on the 1 year graph better clearly shows extremely high volumes are trying to push the price higher. A break above 145 can give a target of 190.
Reasons why this stock can breakout:
- Mukand Ltd has received 800 cr from land sale this quarter which will be utilized mostly to reduce debt.
- Sale of 5.51% shares of Mukand sumi speciality steel will fetch another 150cr approximately.
- A recent letter from Mr. Niraj Bajaj attached here – Link.
Mr Bajaj talks about improving efficiencies, reducing cost, decreasing debt and improving supply chain which seems to be the crux of the company’s problem. - Also Mr Bajaj has given a hint of hitting 6000 cr for FY 22-23. So it seems we can have a 1750 cr+ March end quarter which is a 32% growth YoY.
- Buying of about 0.55 percent equity from the open market by the promoter from 21/02/23 to 23/03/23.
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