Shivalik Bimetal Shares Soar 10% Amid Breakout, Analysts Predict 26% More Gains

Shivalik Bimetal Controls’ share price jumped over 10% on Friday due to strong demand and high trading volumes. Around 9 lakh shares were traded on July 12, compared to the average of 2 lakh shares per week.

Why Shivalik Bimetal Shares Are a Buy

Brokerage firm Anand Rathi is optimistic about Shivalik Bimetal shares, citing a range breakout with increased volumes. They recommend buying the stock with a target price of ₹785, suggesting a 26% upside from Thursday’s closing price, and advise a stop loss at ₹545. The expected time horizon for this trade is 12 months.

Recent Performance and Forecast

After a dip in August 2023, Shivalik Bimetal shares stabilized within the ₹620 – ₹480 range. Recently, the stock broke out of this range with higher volumes. Weekly momentum indicators like the RSI are also positive, crossing above 60.

Current Market Activity

Shivalik Bimetal shares have risen over 12% in one week and more than 20% in one month. The stock is up over 22% year-to-date. While it has been flat over the past year, it has delivered over 730% returns in the past three years.

About Shivalik Bimetal Controls

Shivalik Bimetal Controls specializes in joining materials using various methods. The company produces thermostatic bimetal/trimetal strips, components, spring-rolled stainless steels, and electron beam welded shunt materials, among other products.

The company is a leader in the domestic market for shunt resistors, benefiting from its advanced Electron Beam Welding (EBW) technology. It is expected to gain from the increasing use of smart meters and electric/hybrid vehicles. Shivalik Bimetal is also a major exporter in the automotive sector and is poised to grow its market share in shunts and resistors.

At 10:30 am, Shivalik Bimetal Controls shares were trading 7.80% higher at ₹672.35 on the BSE.