Top stock under Rs 50: Ginni Filaments

Ginni Filaments Ltd, which is engaged in manufacturing ultrafine combed cotton yarn & knitted fabrics, has performed exceptionally well, reporting a net profit of Rs 41 crore, which is 720 per cent greater than the previous financial year. 

The company, which has a market cap of Rs 329 crore & comes under the small-cap category, witnessed a rise in its operating margins and it is expected to do well in the future as well. The stock trades at a PE of 6.27, which is much lesser than the sector PE of 39.55. This indicates that the stock is not trading at a premium valuation.   

Analysing the past performance, the stock has performed well across various mediums as well as short-term as it delivered 90.89 per cent on a YTD basis. Besides, its three-month performance stands at 31.35 per cent.  

Promoters hold a major stake in the company, which is about 70 per cent. However, 25 per cent of their holdings are pledged. The rest is being held by the public while institutions hold no stake in the company. However, the promoters are unpledging their shares on a quarterly basis.   

The stock made a fresh 52-week high of Rs 45.30 on Thursday and corrected a little. Today, it has surged over 10 per cent and it is back to test its 52-week high. The stock has been trending for quite some time and has shot up by over 20 per cent during this period. The RSI is currently at 68 and has entered bullish territory. The trend indicator ADX is rising and currently, lies at 33. A rising ADX above 25 indicates a strong uptrend. Moreover, rising volumes have been recorded, which validate the bullish bias of the technical indicators.   

With strong price action accompanied by rising volumes, the stock is super bullish and has the potential to create new highs in the times to come. Traders are requested to include this stock in their watchlists.