Miniratna small-cap stock registers solid breakout; aims for record turnover of Rs 1200 crore in FY24 and trades below book value!
Company is geared towards achieving a record turnover of Rs 1200 crore for FY24 – a testament to its unwavering dedication and potential.
In a rare display of investment wisdom, Prime Minister Narendra Modi himself extended valuable advice to investors, suggesting that betting on state-owned companies, often ridiculed by others, could prove to be a prudent move. This sentiment promptly drew attention to various PSU (Public Sector Undertaking) stocks, triggering a surge of interest among market participants.
Amidst this fervor, a remarkable yet lesser-known player has emerged – the Dredging Corporation of India (DCIL). Positioned as a Small-Cap stock and designated as a Mini-Ratna Public Sector Enterprise, DCIL is an unmissable contender in the investment landscape.
DCIL is a dynamic entity immersed in integrated dredging services, catering to both major and non-major ports, the Indian Navy, and other maritime organizations within India. It commands a commanding presence within the realm of dredging and maritime development, encompassing activities like capital dredging, maintenance dredging, beach nourishment, reclamation, and environmental protection services.
Beneath the surface, DCIL has orchestrated an impressive performance, with a notable surge of over 12 per cent recorded in the first trading hour on Tuesday. This upward trajectory was underpinned by substantial trading volume, with over 13 lakh shares changing hands on the NSE within the initial half-hour. Presently trading at Rs 478, the stock's upward surge substantiates a robust breakout from a 39-week long cup pattern.
Evidently, DCIL finds itself in close proximity to a 55-month high, harmoniously trading above both short- and long-term moving averages. A meticulously aligned sequence of indicators further bolsters this promising outlook.
The daily 14-period RSI (Relative Strength Index) confidently marks a fresh swing high, firmly situated in bullish territory. A glance at the daily MACD (Moving Average Convergence Divergence) corroborates this optimism, with its northward orientation and consistent sustenance above the nine-period average affirming the stock's positive bias.
Reinforcing this positive sentiment, the Average Directional Index (ADX), a gauge of trend strength, stands at an impressive 46.71, signifying formidable momentum. What's more, the ADX maintains its ascendancy, signaling an ongoing uptrend. This strength is further underlined by the clear separation between the positive (+DI) and negative (-DI) directional indicators, effectively indicating robust bullish prowess.
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As we shift our focus to DCIL's strategic trajectory, the company's commitment to sustain its upward momentum becomes abundantly clear. Intent on continually enhancing its performance, DCIL is geared towards achieving a record turnover of Rs 1200 crore for FY24 – a testament to its unwavering dedication and potential.
Presently trading below its book value of Rs 508, DCIL offers an enticing prospect for discerning investors. A retrospective glance over the past year reveals commendable gains of 12.09 per cent, underscoring the stock's capacity to deliver appreciable returns.
Disclaimer: The article is for informational purposes only and not investment advice.