Gladiator Stocks - Grindwell Norton - ICICI Direct

Technical View

The capital goods space remain in strong up trend with the capital goods index placed at an all time high and forming higher peak and higher trough in all time frame

The share price of Grindwell Norton is in secular up trend and is seen resuming its primary up trend after last three months shallow retracement. It is currently rebounding forming a higher base at the 20 weeks EMA (currently at Rs. 1175) which has acted as strong support in the entire up move since September 2020. Thus offers fresh entry opportunity

The stock earlier during February 2021 has registered a resolute breakout above the long term rising supply line joining the yearly high of CY 2018 (Rs. 575) and CY 2020 (Rs. 698) highlighting a structural turnaround

Fundamental View

Grindwell Norton Ltd (GNL) is the market leader in the India Abrasive market with ~26% market share. The segments include abrasives (contributing ~57%), ceramics & plastics (33%) and IT Services & others (10%). Improvement in overall utilisation of the domestic industry along with demand from healthcare and chemicals is likely to support growth

Margins have significantly improved owing to solutions oriented approach and niche value added product launches in Engineered Ceramics & performance plastics & refractories (eg.in life sciences) segment. Superior margins expected to sustain in the long term led by operational efficiencies and further addition of high margin value added products and solutions oriented approach providing better pricing power and strong incremental growth

For details, click on the link below: Link to the report

Shares of Grindwell Norton Ltd. was last trading in BSE at Rs. 1365 as compared to the previous close of Rs. 1309.75. The total number of shares traded during the day was 85256 in over 7693 trades.

The stock hit an intraday high of Rs. 1409.5 and intraday low of 1329. The net turnover during the day was Rs. 116538784.

Source : Equity Bulls

Keywords