Bulls Run: Large-Cap Soars to ATH after ‘6-Month-Long’ Range!

  • Stock Market Analysis
Aayush Khanna/Investing.com - Investing.com

Long-term investors who are not much bothered about frequently timing the market are better off holding stocks in their bull run. These stocks become a good bet for compounding over a long period of time.

One such stock that is in a bull run and surged to an all-time high last week is TVS Motor Company Limited (NS: TVSM ). It is a two-wheeler manufacturer with a market capitalization of INR 55,540 crores and trades at a TTM P/E ratio of 41.8.

The company posted a stellar FY23 performance, with a record-high revenue of INR 32,111.99 crores, which was 31.6% higher than the previous year. Consequently, net profit also rose to the highest level of INR 1,328.67 crores, a noteworthy 75.5% YoY jump. It was able to secure a profit margin of 4.14%, which might seem less, but it is the highest figure since FY15, at least. The company is also attracting FIIs’ interest and they significantly racked up their stake in 9 months, from 9.85% by the end of June 2022 to 17.01%, as per the March 2023 quarter.

Image Description: Weekly chart of TVS Motor Company with volume bars at the bottom

Image Source: Investing.com

Coming to the technical setup, the stock is comfortably trading above its 200-day simple moving average (SMA). This is a good long-term indicator to decide on the trend of the underlying security and is quite often used to determine whether a stock is in its bull or bear run. On Friday, TVS Motor Company’s shares jumped 3.93% to INR 1,214.95, after a 6-month-long consolidation phase and closed at the highest level. Although the stock was already in a strong uptrend since May 2022 (as per 200-day SMA), Friday’s breakout would be working as a fresh catalyst for the ongoing bull run.

Investors wanting to add this stock to their portfolios can look for dips to accumulate this blue-chip, till it’s hovering above its moving average. While medium-term traders can go long on this breakout with a stop loss below INR 965. The nearest potential to which the stock can rally is around INR 1,400.

Read More: F&O Stock Makes ‘Shooting Star’ Amid 8% Rally; Poised for Correction!

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  • Amit Acharya @Amit Acharya
    Sir, could you pls share your views on Maruti?
    Like 0
  • rakesh taneja @rakesh taneja
    IMPAL is a TVS group company with some interest in TVS Motor indirectly
    Like 0
  • raji talluri @raji talluri
    good one
    Like 1
    • Aayush Khanna @Aayush Khanna
      Thanks :)
      Like 0

      • Comment Guidelines

      We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

      • Enrich the conversation
      • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
      • Be respectful. Even negative opinions can be framed positively and diplomatically.
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