Zero Profit to Highest Profit: This Small-cap Multibagger Stock, Backed by Apollo Tyres Group, Registers a Solid Breakout!

This breakout was supported by strong volumes, with the total trade volume in the first 90 minutes surpassing the volume of the prior trading session and marking the highest single-day volume since November 16, 2023

Indian markets are currently experiencing profit booking, with Nifty and Sensex trading lower by 0.25 and 0.22 per cent, respectively. Examining the sectoral indices, Nifty IT, which had been making significant bullish strides, encountered a setback on Tuesday, declining by 1.44 per cent and emerging as the top loser among the sectoral indices. In contrast, Nifty FMCG and Nifty Energy are the sole gainers in the sectoral indices.

The broader market indices are also in the red, with the Mid-Cap index down by 0.64 per cent and the Small-Cap index down by 0.37 per cent.

In the midst of this profit booking environment on D-Street, it becomes crucial to make prudent stock choices, particularly in the case of small-cap stocks. Therefore, here is one stock that has witnessed a positive breakout: Artemis Medicare Services Ltd (ASML).

The stock of Artemis Medicare Services surged by almost 5 per cent on Tuesday, reaching a fresh 52-week high of Rs 179.95 on the NSE. Having risen from a low of Rs 57 in September 2022, the stock has shown consistent upward momentum. In mid-November, it reached a high of Rs 173.80 and subsequently entered a consolidation phase lasting almost 21 trading sessions.

On Tuesday, with a robust move, the stock broke out of the 21-day long consolidation. This breakout was supported by strong volumes, with the total trade volume in the first 90 minutes surpassing the volume of the prior trading session and marking the highest single-day volume since November 16, 2023. The daily 14-period RSI has generated a buy signal by moving above its nine-period average, confirming a positive bias.

ASML commenced operations in 2007 and was founded by the promoters of the Apollo Tyres Group. Mr. Onkar Kanwar, the chairman of ASML, is also the chairman of Apollo Tyres Limited (ATL) and holds a 68.03 per cent stake in ASML through an investment company (Constructive Finance Private Limited) as of June 30, 2023.

The company reported its best-ever quarterly performance for the sixth consecutive quarter, a result of continuous efforts focused on improving revenue realizations and optimizing operations. The rapid occupancy ramp-up of the company’s second tower has allowed it to benefit from economies of scale, further enhancing operational efficiency.

Notably, the company's journey from almost negligible profit in the quarter ending September 2020 to the highest-ever profit of Rs 14 crore in the quarter ending September 2023 is a significant achievement. The stock has delivered multibagger returns in the last year, with an impressive jump of nearly 122 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.