This dynamic player in the automotive sector has not only caught the attention of investors but is also backed by automotive giants Suzuki Motor Corporation and Denso Corporation, with substantial stakes of 11.96 per cent and 20 per cent, respectively.

Going forward, the 16800 mark is expected to act as strong support for the index, and traders are advised to keep a close watch on this level. In addition, market participants should also keep an eye on the stock of

Talking about the technical view, the stock has witnessed breakout of the tight range with a massive volume and closed above the moving average ribbon and its key short-term moving averages.

The turnaround was seen in the quarterly net profit as the company reported a net profit of Rs 22 crore as against a loss of Rs 11 crore in the same quarter of the previous fiscal year. 

Talking about the stock performance, the stock is up by 35.75 per cent since October till date, while the BSE Sensex is up by 10.71 per cent, which clearly indicates that the stock has outperformed the frontline gauge.

Interestingly, the company also managed to turn its year-ago quarter’s net loss of Rs 7.5 crore into a profit of Rs 27 crore in Q1FY23.

Gross Margin has slightly improved as compared to last quarter due to easing input cost pressure and pass through to the customers. However, revenue and consequently profitability during the quarter got impacted due to spill over of service billing followed by non-availability of required infrastructure from the customer end and also continued shortage of semiconductors.  

Interestingly, the stock witnessed a faster retracement as it saw a correction of 35 per cent in 11 weeks and retraced its entire downmove in just two weeks, which signals strength as well as a robust price structure.