Shares of Filatex India soared nearly 12 per cent in Monday’s trade, halting their losing run of three-straight sessions. The stock jumped 11.90 per cent to hit a day high of Rs 47.95 over its previous close of Rs 42.85 amid heavy volumes. Filatex’s board approval for the stock split has led to a sharp rise in stock price today, an analyst said.
On the technical front, support on the counter could be seen at around Rs 41-42 levels.
A total of 91,000 shares changed hands today on BSE, which was nearly double the two-week average quantity. The turnover on the counter stood at Rs 42.71 lakh. At this price, the company commanded a market capitalisation (m-cap) of Rs 2,097.66 crore.
Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, “Filatex India is trading with negative bias and is hovering below its 200-SMA (Simple Moving Average) on the daily chart. The counter has gained some traction post the split, however, the trend is still weak. The stock is in the oversold region, wherein the support lies around Rs 41-42 odd levels. On the flip side, the resistance is placed at Rs 50-odd zone.”
A R Ramachandran from Tips2trades said the┬аstock split approval was the reason behind today’s surge.┬а“Rs 48.5 will remain a strong resistance. A daily close above this level could lead to targets of 51.5-54.7 in the near term,”┬аRamachandran added.
The stock hit a 52-week high of Rs 71.15 on January 17, 2022, and a one-year low of Rs 40.25 on December 26, 2022.
The stock was last seen trading higher than 5-day and 20-day moving averages but lower than 50-day, 100-day and 200-day moving averages. Filatex has a one-year beta of 1.04, Trendlyne data showed, suggesting average volatility on the counter.
Filatex’s 14-day relative strength index (RSI) came at 51.32. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 16.85.
The stock turned ex-split in the ratio of 1:2 on December 27 last year. The stock’s face value changed from Rs 2 currently to the new face value of Re 1 per share, BSE data showed.
In the second quarter (Q2) of the current fiscal, Filatex India reported a 65.90 per cent fall in its consolidated net profit to Rs 25.16 crore, against Rs 73.78 crore net profit for the quarter that ended September 30, 2021.
However, sales of the company rose 20.57 per cent to Rs 1,163.42 crore in Q2 from Rs 964.95 crore a year ago.
Filatex India is among leading manufacturers of Polyester Filament Yarn in India. The company manufactures polyester and polypropylene multifilament yarn, and polyester chips.
The company’s segments include manufacturing and trading of synthetic yarn and textiles. It also manufactures various types of synthetic yarns, which include polyester partially oriented yarns (POY), polyester filament yarns, fully drawn yarns (FDY), drawn textured yarn (DTY), air textured yarn (ATY), polypropylene yarn (PPY) and narrow woven fabrics (NWF).
Meanwhile, Indian equity benchmarks rebounded sharply in today’s deals, led by gains index heavyweights Reliance Industries, Tata Consultancy Services (TCS) and Infosys. Investors shifted their focus to the corporate sector as earnings season kicks off today. TCS would announce its quarterly numbers later in the day.
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