Intrasoft Technologies: Trade or Invest?

Intrasoft Technologies explains trading and investing in its own style. Let's find out why.

Intrasoft Technologies Ltd is engaged in the business of providing electronic greeting cards, development of associated digital content and online marketing. The company provides electronic greeting cards through their websites and has partnered with several service providers for the technological infrastructure required to facilitate the same. It has a market cap of Rs 299 crore.

Comparing the stock’s performance with its peers, Intrasoft technologies has delivered the highest returns to its investors, recording about 215.18% growth in just one year. It has delivered magnificent returns of 192.05% on a YTD basis and the stock has multiplied itself 1.5 times in just three months. Thus, the stock has performed well in the medium as well as short term.

However, the bigger picture tells us a different story. The company has been reporting a decrease in revenue and net profits YoY. The same has been factored in its stock price. It made an all-time high of 854 in December 2017 and has fallen 76% from there in 4 years, thus deteriorating investors’ wealth. The mounting debt on a YoY basis is a big red flag for the stock. However, the company management believes to revive the company’s financials.

The stock surged 5% today and has hit its upper circuit. On the monthly chart, the stock has been scaling new highs since August 2021 and has soared about 67% during this period. Also, the stock has never been below its 20-WMA since the second week of April. The weekly RSI is going strong at 76 and is in super bullish territory. Coming on to the daily chart, the stock trades above all the key moving averages and has, in fact, recorded its new 52-week high today. The MACD has given a bullish crossover last trading session and the trend indicator ADX is at 37 and rising. Generally, a rising ADX above 25 is considered a bullish trend. To add further, rising volumes validate all the above points that favour the bullishness of the stock.

Considering the overall analysis of the stock, the stock is more of a trading bet than a long-term investing asset. Thus, it is advisable for the market participants to trade with the appropriate strategy and not hold this stock for a longer-term.