Shares of PTC India Ltd continued to rise on Friday, gaining nearly 5 percent, days after its subsidiary PTC India Financial Services reported an over 400 percent jump in the net profit at ₹129.98 crore for the fiscal year ended March 2022 compared to ₹25.60 crore for FY21.
Since the beginning of 2022, the state-owned company’s stock has been following a downward trend.
Share of PTC India have fallen 34.45 percent from its 52-week high of ₹122.6, and are over 19 percent above its 52-week low seen on October 21, 2021.
Analysts believe the stock will be volatile and advise to avoid buying.
“Generally, technical view on such counters moving in circuits is not possible, as it's ideally not tradeable. However, momentum is on the positive side, with 88 level seen as the next support, whereas 74 level is the support,” an analyst said.
According to a Mintgenie poll, an average of two analysts recommends ‘strong buy’.
In July-September, FIIs/FPIs have decreased holdings from 32.33 percent to 31.67 percent, and mutual funds have decreased holdings from 1.18 percent to 0.75 percent.
“The company is now positioned to focus on growth and performance,” PTC India Financial Services said in an exchange filing while announcing earnings.
The company’s capital adequacy ratio for the quarter that ended March stood at 26.71 percent hereby providing a strong cushion for growth and expansion.
“The financial statement for FY 2022 shows that the company is now positioned to grow at a rapid pace. We have re-generated a pipeline of new loan proposals related to various sunshine sectors. We are now positioned to contribute significantly to India’s target of Net Zero emission economy,” said the management.
On the technical front, according to analysts, the PTC India Financial Services stock shows signs of bottoming out. In the near term, further upside can be expected towards the ₹16.50 level, whereas ₹14.5 level is the support.
According to reports, the non-banking finance company's shares were trading sideways as the company had not declared the FY22 results on reports of some irregularities and non-compliance. A forensic audit was ordered to find irregularities if any.