The rally got here regardless of a 36% year-on-year drop in consolidated web revenue, which fell to Rs 227.8 crore from Rs 357 crore in the identical quarter final yr.
Apparently, traders appeared to react extra positively to the corporate’s income efficiency. Income from operations grew 5.4% year-on-year to Rs 917.5 crore, in comparison with Rs 870.4 crore within the corresponding quarter of the earlier yr.
The inventory’s acquire means that the market could also be specializing in the corporate’s top-line development and presumably pricing in expectations of a restoration in profitability within the coming quarters.
Technical indicators and value motion
Over the previous month, SJVN’s inventory has remained largely flat, recording a modest acquire of simply 1%. The inventory has been buying and selling between its 52-week low of Rs 80.50 and its 52-week excessive of Rs 148.85, indicating a large buying and selling vary and previous volatility.
The 14-day Relative Power Index (RSI) for SJVN stands at 39.6, putting the inventory in impartial to barely oversold territory. RSI is a momentum indicator used to gauge whether or not a inventory is overbought or oversold. Readings beneath 30 recommend oversold circumstances (potential shopping for alternative), whereas readings above 70 point out overbought ranges. With an RSI close to 40, there’s no clear reversal sign, nevertheless it suggests the inventory could also be stabilizing after a dip.
On the shifting averages entrance, SJVN is buying and selling above seven of its eight key easy shifting averages (SMAs) from the 5-day to the 150-day indicating a short- to mid-term bullish pattern. Nevertheless, it stays beneath the 200-day SMA, which alerts the longer-term pattern. A transfer above the 200-day may additional strengthen the bullish outlook.
(Disclaimer: Suggestions, ideas, views and opinions given by the specialists are their very own. These don’t signify the views of the Financial Instances)
