Aarti Drugs shares zoom 30% from 52-week low; here’s the new target price

Shares of Aarti Drugs zoomed over 8% intraday in a highly volatile market today. The pharma stock climbed up to Rs 404.70 , rising 8.25% against the previous close of Rs 373.85 on BSE. Market cap of the firm rose to Rs 3,685 crore on BSE. With today’s rally, the stock has recovered 30.21% from 52 week low of Rs 310.80 hit on March 20, 2023 . The stock hit a 52 week high of Rs 531.60 on April 7, 2022.

Total 2.07 lakh shares of the firm changed hands amounting to a turnover of Rs 8.29 lakh on BSE. Shares of Aarti Drugs have lost 13.7% this year and declined 9.54% in a year.

In terms of technicals, the relative strength index (RSI) of Aarti Drugs stands at 54.7, signaling it’s neither trading in the oversold nor overbought zone. Aarti Drugs stock has a one-year beta of 0.6, indicating low volatility during the period. The pharma shares were trading higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages.

Abhijeet from Tips2trade said, “Aarti Drugs looks bullish on the Daily charts with strong support at Rs 376. A close above resistance of Rs 402 could lead to higher targets of Rs 430-441 in the near term.”

Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher said, “The stock after the decent erosion has bottomed out near Rs 314 zone and indicated a significant pullback with tremendous volume participation to improve the bias with currently moving past the important 50EMA level of Rs 381 zone has further improved the trend. Now keeping a stop loss of Rs 370, one can expect further rise for next target of Rs 430 levels with the RSI indicator strongly recovering from the highly oversold zone and currently well placed to anticipate for further upside move.”

Aarti Drugs is a part of the $900 million Aarti Group of industries. The company is engaged in the manufacturing of active pharmaceutical ingredients (APIs), pharma intermediates, specialty chemicals and also produces formulations with its wholly-owned subsidiary – Pinnacle Life Science Pvt Ltd. Products under APIs include Ciprofloxacin Hydrochloride, Metronidazole, Metformin HCL, Ketoconazole and Ofloxacin, whereas specialty chemicals include Benzene Sulphonyl Chloride and Methyl Nicotinate.

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