This Realty stock is all set to become Multibagger; do you own it?
The Company is continuously reducing its debt, the compounded profit growth is around 27 per cent and the stock price CAGR is around 14 per cent
Markets closed positive for the 9th consecutive session and the Nifty Realty index contributed in this up move by rallying more than 10 per cent in same period. This up-move was seen from the previous swing lows on the weekly chart which makes the double bottom kind of formation. One of the stocks which caught investors' attention was DLF. The stock is among the top constituents by weightage in Nifty Realty Index with a weight of over 30 per cent.
DLF Ltd with its subsidiaries, associates and JVs is engaged in real estate development, from the identification and acquisition of land to planning, execution, construction and marketing of projects. It is also engaged in business of leasing, generation of power, provision of maintenance services, hospitality and recreational services which are related to the overall development of real estate business.
The Company is continuously reducing its debt, the compounded profit growth is around 27 per cent and the stock price CAGR is around 14 per cent.
Here’s a technical check of DLF
After the pandemic carnage, the stock rallied nearly 293 per cent from its March 2020 lows. At present, the stock has rebounded from its strong support zone of Rs 340-347 and interestingly, it outperformed to its all peers and benchmark index as well.
Stock is near to its technical breakout of continuation pattern along with trend reversal price pattern. Now it closed at Rs 413.15 on NSE and closing above Rs 430 will confirm this breakout. Targets of this pattern will be around Rs 1000 – Rs 1500 within 2 years.
Considering the above factors, Realty sector investors and Breakout traders can keep this stock on the watchlist.