Stock watch: Is ICIL up for grabs?

Indo Count Industries Limited is a home textile company engaged in the activity of manufacture of textile products.

The company is involved in the manufacture of bedding, quilts, pillows, sleeping bags and others. It has a market cap of Rs 5238 crore. The company has reported good profits consistently over the last 4 years. It has generated higher than average industry revenue growth in the last five years. Its PE stands at 14.95 which is far lesser than the sector PE of 34.13 indicating that the stock is not trading at a premium level.

The majority stake of the company is being held by the promotors (about 59%). The foreign institutional investors hold a mere 10% stake while the retail portion holds about 30%. The stock delivered exceptional returns of 82% on a YTD basis, indicating the attraction of market participants. Interestingly, the stock is seen going all out on Monday, where it has outperformed hands down and is up over 11% today.

In the past few weeks, it had corrected as much as 40% from its all-time high of 314. Since then, the stock consolidated for some time before shooting up today. The stock currently trades above all the key moving averages. The RSI too, jumped from 35 to 53 indicating bullishness of the stock. The lagging indicator MACD is displaying a crossover today. The ADX line is also picking up pace. Along with this, we observe that volume is on the rise as the volume recorded today is above its 10 and 30-daily average volume. It currently faces its short-term resistance of 275. Closing above this point with huge volumes will be an indication of momentum on the upside. Market participants are showing interest in this stock, as is evident from the technical analysis.

Considering the strength the stock has, one can expect very good returns for the short to medium term.