Buzzing Stock: Everest Kanto Cylinder skyrockets 25 per cent in just 3 trading sessions

Everest Kanto Cylinder Ltd (EKC) gains by 25.43 per cent in just three trading sessions. The stock had hit its upper circuit in the previous two trading sessions.

EKC is one of the largest manufacturers of seamless cylinders in India and enjoys more than 50 per cent of the market share as on date. The company is expected to benefit from the increasing demand for industrial gases, owing to the government’s focus on infrastructure development.

With the current COVID-19 crisis and already prevailing demand for medical equipment, EKC products are expected to be in good demand. There is a definite push towards medical service in the rural sector. The demand for medical gases, cylinders, and other allied equipment is increasing steadily, owing to the current crisis. With the demand for breathing air apparatus on the rise, EKC is expected to profit from an increase in demand for speciality gases as well.

On a YTD basis, the stock is trading flat with no gains. At current prices, the stock is trading higher than its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. The micro-cap company, EKC, is trading at 168.94 prices to earnings multiple against the industry price to earnings multiple of 57.36.