Is Hinduja Global Solutions ready for the big momentum?

Despite Covid last year, the company has reported an increase in profits by 70%.

Hinduja Global Solutions Limited is engaged in business process management. The company's principal activity includes IT-enabled services (ITES) - business process outsourcing and provides IT solutions. It is a midcap company with a market capitalization of Rs 6,914 crore. The company’s financials are strong, as the company has been able to deliver increased revenues and net profits annually. Despite Covid last year, the company has reported an increase in profits by 70%. What’s more, is that the company has been able to capture about 40% of the market share.

The company shareholding pattern comprises of promotors holding a major stake of about 67%, while the public and foreign institutions hold about 26% and 6% stake, respectively.

The stock has registered a phenomenal performance over its peer by delivering 195.88% returns to its investors in 2021. The short-term performance of three months is well above 17%. This shows that the stock is trending strongly for quite some time.

On the technical chart, we see that the stock has taken the support of its 20-DMA before surging over 11% today. This rise has been the highest since March 2021. The price action is accompanied by the rise in volume which is greater than 10 and the 30-day average volume. Rising volumes indicate active participation of the market players. Owing to today’s strong price action, the RSI has jumped to 66 and has entered bullish territory. The trend indicator ADX is rising indicating that the stock might be in trend soon. It is currently facing a short-term resistance of 3300-3350, and any closing above this, backed by good volume, will pave the path to its all-time high of 3550.

The technical parameters are showing bullish signs, and with promising and high growth fundamentals, the stock is expected to be trading higher in the short to medium term.