Multibagger small cap stock soars 8 per cent on Thursday, do you own it?
This stock has been a proven multibagger, which generated returns of 440 per cent in the past 3 years
After the volatile move in the month of February, Nifty is still struggling for a bounce back but one small cap stock from speciality chemicals sector grabbed investors’ attention and rallied 8 per cent on Thursday with huge volumes.
The stock of Kingfa Science and Technology (India) Ltd (NSE Scrip code : KINGFA) is engaged in the business of manufacturing and supply of reinforced polypropylene compounds, thermoplastics elastomers and fiber re-inforced composites.
It is almost a debt free company where Foreign Institutional Investors (FIIs) holds 6 per cent stake of the company. This stock has been a proven multibagger, which generated returns of 440 per cent from the lows of March 2020 and made all time high of Rs 1625 in December 2021. However, it lost the momentum and retraced around 61 per cent of the rally from its prior swing high. Interestingly, it is where the bulls came in action and the stock bounced back from the lows of June 2022 and currently trades at Rs 1470. Now KINGFA has registered a multiyear technical breakout with massive volumes in the initial hours of Thursday’s session. RSI on Daily charts is about to signal a breakout of previous multiple swing high in the range of 62 - 65. The key short-term moving averages have given bullish crossover, thus confirming a strong momentum. Swing traders and investors should add this stock to watchlist and track it in upcoming trading sessions.