Top Buzzing stock: JB Chemicals and Pharmaceuticals

The stock has surged nearly 3% on Thursday and approaches its prior swing high at Rs 1800.

JB Chemicals and Pharmaceuticals Limited manufacture and market a range of pharmaceutical formulations, herbal remedies, and active pharmaceutical ingredients (APIs). It is a midcap company with a market capitalization of over Rs 13500 crore. It is one of the fastest-growing midcap company in its sector and has posted increasing revenues and net profits in the last four years. It had a strong growth rate in its net profits, which was about 48% on average in the last three years.

With such strong growth potential, the company has attracted institutional support, as they hold about 25% of the company’s stake. The promotors hold the major stake in the company (about 54%), while the HNIs and public hold the remaining portion of the company.

The stock has given exceptional returns of nearly 75% to its shareholders in the past one year. Moreover, it remained firm despite weak market sentiment and reported about a 6% increase in its share value on a monthly basis.

The stock has surged nearly 3% on Thursday and approaches its prior swing high at Rs 1800. It has witnessed huge buying interest at lower levels. It took support near its 100-DMA and bounced sharply thereafter. The stock trades above all the key short term and long term moving averages while the RSI has also entered the bullish territory. The trend indicator ADX is rising above 23 and shows good upside momentum. Moreover, the Elder Impulse System has given a fresh buy signal. The technical parameters indicate strong potential for an uptrend as above average volumes validate the point. Moreover, a bullish pin bar candle has been formed on the weekly chart which indicates a positive bias of the stock.

Overall, the stock is quite attractive among the buyers in this turmoil situation of the market. Traders can include this stock in their watchlist and can expect decent profits in the short to medium term.