Minda acquires iSYS RTS, stock shows resistance at breakout levels

Minda Industries is again buzzing after it announced bonus issue of 2:1 and final dividend of Rs. 1.60 last week. This flagship company of UNO Minda group is an auto parts and equipment maker. The company announced the acquisition of iSYS RTS, a Germany-based firm. The stock of Minda Industries opened on a positive note and hit a high of 427 and is currently trading marginally up with 0.4 per cent gains at 421 levels at 12:46 hours.

iSYS RTS develops embedded systems and software, hardware components for OEMs across globe. It offers engineering services and is a manufacturer of Automotive Electronic Control Units (ECU). With access to the company’s resources, Minda Industries will be able to exploit synergies beyond its core competencies and these synergies would fetch returns on developing solutions for automotive OEMs. The company will also be able to expand its footprint in India and Europe.  

The stock was trading flat since the start of July 2018, however, it has given a downward sloping trendline breakout four times in the recent past, but could not sustain the same on a closing basis. In broader terms, it has formed a V-shaped Cup and Handle pattern on the daily timeframe with 424-425 as the breakout levels on a closing basis.