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

  • Stock Market Analysis

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
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