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Despite a not-so-good mood of market participants on the last day of the week, as reflected by a sea of red numbers on the screen, some counters are paving their own path. IFB Industries which is a small-cap auto parts manufacturer with a market capitalization of INR 3,470 crore is coming on investors’ radar.
Recently, the company released its Q2 FY24 earnings report which presented a mixed picture. Net sales dipped by 2.68% to INR. 1,068.06 crore, but the company achieved an 18.65% increase in quarterly net profit, reaching INR 28.69 crore. EBITDA also saw a modest 1.15% growth to INR 74.83 crore. Earnings per share (EPS) showed promising growth, rising from INR 5.97 in September 2022 to INR 7.08 in September 2023.
Image Description: Daily chart of IFB Industries with volume bars at the bottom
Image Source: Investing.com
Now, the stock is catching attention and is up 9.2% to INR 935, by 11:09 AM IST and surged past its falling trendline resistance of a downward sloping channel on the daily chart. This is a bullish indication and might lead to a trend reversal from here.
More importantly, the volume for the day so far has been recorded at over 836.1K shares, which is the highest one-day figure since November last year. This breakout backed by heavy volume looks promising and investors might help the stock rally to its intrinsic value of INR 1,092, translating into a decent 17% upside.
Image Source: InvestingPro+
This is the average fair price of the company calculated by taking 12 different financial models in InvestingPro+ which makes it a more realistic and achievable target.
The tool used to calculate the fair value of IFB Industries is InvestingPro+. You can avail an extra 10% discount over and above the ongoing promotional price of a 55% price cut for the Bi-yearly plan only, using the code – PROC324
Access the link at: https://www.investing.com/pro/pricing?entry=partners&sub_entry=IN-Content-Aayush&utm_source=partners&utm_campaign=other&utm_content=article&utm_term=IN-Content-Aayush
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