The rally came despite a 36% year-on-year drop in consolidated net profit, which fell to Rs 227.8 crore from Rs 357 crore in the same quarter last year.
Interestingly, investors appeared to react more positively to the company’s revenue performance. Revenue from operations grew 5.4% year-on-year to Rs 917.5 crore, compared to Rs 870.4 crore in the corresponding quarter of the previous year.
The stock’s gain suggests that the market may be focusing on the company’s top-line growth and possibly pricing in expectations of a recovery in profitability in the coming quarters.
Technical indicators and price action
Over the past month, SJVN’s stock has remained largely flat, recording a modest gain of just 1%. The stock has been trading between its 52-week low of Rs 80.50 and its 52-week high of Rs 148.85, indicating a wide trading range and past volatility.
The 14-day Relative Strength Index (RSI) for SJVN stands at 39.6, placing the stock in neutral to slightly oversold territory. RSI is a momentum indicator used to gauge whether a stock is overbought or oversold. Readings below 30 suggest oversold conditions (potential buying opportunity), while readings above 70 indicate overbought levels. With an RSI near 40, there’s no clear reversal signal, but it suggests the stock may be stabilizing after a dip.
On the moving averages front, SJVN is trading above seven of its eight key simple moving averages (SMAs) from the 5-day to the 150-day indicating a short- to mid-term bullish trend. However, it remains below the 200-day SMA, which signals the longer-term trend. A move above the 200-day could further strengthen the bullish outlook.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
