Aeroflex Industries shares climbed 15 percent to an all-time high of ₹599.70 on the BSE Monday, extending a rally that has more than doubled the stock in six months, after the company said its board would meet Wednesday to approve expansion plans including further capacity enhancements.
The catalyst
The move coincided with the announcement of a board meeting scheduled for 14 October to consider capacity additions. The stock opened at ₹530.60 against a previous close of ₹520.45 and erased a two-day decline. The manufacturer of stainless steel flexible flow solutions, hoses, assemblies and engineered products for data centres, oil and gas, pharmaceuticals, chemicals and power, has seen buying interest accelerate since the disclosure.
The numbers
Revenue in the June quarter reached ₹145.97 crore, the highest on record, up 72.4 percent from a year earlier. Profit after tax more than doubled to ₹18.79 crore, a 162.2 percent increase. EBITDA rose 116.4 percent to ₹33.49 crore, pushing the margin up 468 basis points to 23.04 percent. The shares have gained over 100 percent in six months, nearly 200 percent year to date, and 230 percent over the trailing year.
The technical view
Jigar Patel of Anand Rathi said the price structure shows higher highs and higher lows across timeframes, with the Relative Strength Index above 60 on daily, weekly and monthly charts. He recommended a buy-on-dips approach with a stop loss at ₹550 and a target of ₹650. Vipin Kumar of Globe Capital Market echoed the bullish structure and suggested accumulating on dips around ₹480 to ₹500 for a medium-term target of ₹650.
What to watch
The board's decision on capacity expansion on Wednesday will test whether the fundamentals can sustain a move that has already priced in substantial growth.