Can this Murugappa Group stock be a ‘dark horse for November?

Furthermore, volume is three times its 10-day average volume of 3.04 lakh per trading session. The daily MACD has generated bullish crossover, which validates positive bias.   

EID–Parry (India) Limited is a listed company engaged in the business of sugar and nutraceuticals. Headquartered in ‘Dare House’ a heritage building, in Chennai (Tamil Nadu, India), the company is a part of Murugappa Group, one of India’s leading business conglomerates.  

The company reported consolidated revenue growth of 20 per cent YoY to Rs 6,978 for the quarter ended September 30, 2021, as against Rs 5,836 crore in the corresponding period of the previous year. EBITDA for the quarter ended September 30, 2021, was at Rs 772 crore as against Rs 890 crore in the corresponding period of the previous year. Consolidated profit after tax and non-controlling interest was at Rs 244 crore compared to Rs 318 crore in the corresponding period of the previous year.   

Interestingly, the stock has witnessed a breakout of stage-2 consolidation pattern accompanied by strong volumes. We are just halfway through Tuesday’s trading session but still, volume for the trading session is above the previous trading session and also, highest since October 13, 2021. Furthermore, volume is three times its 10-day average volume of 3.04 lakh per trading session. The daily MACD has generated bullish crossover, which validates positive bias.   

The stock is up by over 45 per cent on a YTD basis while on an MTD basis, it is up by nearly 9 per cent.