Shares of Accel Industries have gained over 76 per cent in the one-year period, while the stock has gained over 65 per cent in the last one month alone. Now, domestic brokerage house HDFC Securities is seeing further upside in the shares of Accel Industries as it has ‘Buy’ tag. chemical stock,
The brokerage’s bullish trend comes with a target 1,650 more 1,795 with a stop loss of Rs. 1,195 with a time horizon of three to six months as it believes that the overall chart pattern of Excel Industries Ltd indicates a long trading opportunity.
“We are seeing a decisive upside breakout of the important upper resistance of the uptrend line Last week closed at 1320 level (resistance as per the concept of change in polarity) and share price higher. This is a positive sign and further gains can be expected in the coming sessions.”
The volume has expanded sharply during an upside breakout above the key hurdle. This action indicates aggressive participation of bulls. Besides, the weekly 14-period RSI has moved above the 75 level, indicating the presence of a strong rally in the stock price, the brokerage highlighted.
According to HDFC Securities, the chemical manufacturer’s diversified product range and recent entry into the polymer additives and pharmaceutical input segments will further diversify revenues and reduce dependence on agrochemicals.
“Product additions and expansions and positive growth in the pharma and eco-biotech segments will make a strong case for re-rating the stock over the long term.”
The flagship chemicals division of Excel Industries Limited (EIL) comprises a diverse range of product portfolio such as Agrochemical Intermediates, Pharmaceutical Intermediates, Polymer Input Materials, Specialty and Performance Chemicals. It offers a range of Ultimate Pharmaceutical Intermediates and APIs and Veterinary APIs.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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