Stock to buy for medium term: Multibagger stock Jindal Worldwide shares have surged nearly 400% over the last five years rising from ₹69 to the current price of ₹324. According to Anand Rathi Share and Stock Brokers, the company's shares may still have room to grow.
The brokerage recommends buying the textile company’s stock for medium-term gains, projecting a potential upside of 19 per cent.
Currently trading at ₹320, Jindal Worldwide is expected to reach ₹370 within three months, as per the brokerage's estimates. It said investors can accumulate the stock in the ₹300 – ₹320 range while setting a stop loss at ₹280 on a daily closing basis.
Jindal Worldwide recently experienced a sharp correction of nearly 38% after reaching a peak of ₹436 in February 2024. This pullback, however, has brought the stock to a critical technical level, where it has formed a double bottom pattern around the 200-day Exponential Moving Average (DEMA) H/L band on the weekly chart, said the brokerage. The formation of a “double bottom” pattern often signals a trend reversal from bearish to bullish.
“The presence of bullish divergence in the RSI on the weekly timeframe, coupled with the solid support near the 200 DEMA H/L band, reinforces the likelihood of a positive momentum shift," it added.
Jindal Worldwide operates in the textile sector, producing denim, premium shirtings, and home textiles. The company has a market capitalisation of ₹6,423 crore. Its 52-week high and low stand at ₹436.95 and ₹267.75, respectively.
Jindal Worldwide share price was trading in the green, up 0.39 per cent at ₹325.90 on Wednesday, November 27 at 11:10 am on the BSE.
Despite the optimism, the report advises caution. “Investors should maintain a stop-loss at ₹280 to mitigate risks,” it advises. This approach ensures that traders can protect their investments if market conditions shift unexpectedly.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
