Precision Camshafts Stock Soars 32% in Just 3 Days. Is Now the Time to Buy This Debt-Free Gem?

Precision Camshafts’ share price has surged by 32% in just three days, catching the eye of investors. After hitting a lifetime high of ₹319 on the NSE, the stock stayed flat for almost ten months. But in the last three days, it has started to climb again.

Stock market experts say that this surge happened after the company gave a strong forecast for the financial year 2025. The management shared a positive business outlook on Wednesday, which attracted investors. Experts believe that if the stock breaks through the ₹250 mark, it could quickly rise to ₹320.

Why is Precision Camshafts Rising?

Prathamesh Masdekar, a Research Analyst at StoxBox, said the recent rise is due to the company’s positive guidance for FY25, which was announced during their Q1FY25 conference call. They also revealed new orders from big customers across India for their electric light commercial vehicles (e-LCVs).

He added that the company is nearly debt-free and has around ₹200-250 crores in cash. Precision Camshafts is also planning to open a new business related to camshafts, expected to be completed by the end of this financial year. The company aims to spend ₹70-80 crores on capital expenditures (CAPEX) from its own funds, which should help boost sales and profit margins. Based on these factors, Masdekar considers Precision Camshafts a “buy” stock.

Stock Price Prediction for Precision Camshafts

Sumeet Bagadia, Executive Director at Choice Broking, said the stock is currently trading at ₹244.14 and recently broke out of a Descending Triangle pattern at ₹225. This breakout was accompanied by high trading volumes, suggesting strength in the current upward trend. If the stock stays above ₹250, it could move up to the ₹290 to ₹320 range.

Bagadia also noted that the Relative Strength Index (RSI) is at 79.25, showing increased buying interest. The stock has bounced back from a support zone and is above its key moving averages (20-day, 50-day, and 200-day EMA).

For current shareholders and new investors, Bagadia suggests buying on dips for a target range of ₹290 to ₹320, making it a good opportunity for trading.