Stocks to purchase the next week: For over a decade, the share price of Precision Camshafts stayed in a base-building phase. September 2023 saw the debt-free stock reach its lifetime high of ₹319 a share on the NSE. Up until then, it was a perfect’sell-on-rise’ stock. Nonetheless, throughout the last three sessions, shares of Precision Camshafts have been rising.

Experts in the stock market claim that Precision Camshafts’ share price increased significantly after the company’s optimistic FY25 outlook. Dalal Street bulls were prompted to take notice on Wednesday when the company’s management announced a positive forecast for business. They said that the share price of Precision Camshafts has produced a new breakthrough at ₹225 and is about to produce another breakout at ₹250. Should this obstacle be overcome, the stock might shortly rise above ₹320 per share.

News on Precision Camshafts

“Precision Camshafts shares are on a roll after the announcement of strong FY25 guidance on Wednesday during their Q1FY25 conference call, where they also disclosed that they have received orders from large pan-India customers for their e-LCVs,” stated Prathamesh Masdekar, Research Analyst at StoxBox, in response to questions about the factors driving the increase in Precision Camshafts’ share price.

“The firm is almost debt-free and has cash on hand of around Rs. 200–250 crores according to the balance sheet. It has a lot of cash on hand and is now developing, launching a new firm to enhance its CAMSHAFT business, which should be finished by the end of this fiscal year. Furthermore, the management of the firm aims to achieve CAPEX of about 70-80 crores by internal accrual. That would help increase sales and profit margins even further,” the StoxBox analyst said, designating Precision Camshafts shares as “stocks to buy.”

Target price for Precision Camshafts’ shares

Sumeet Bagadia, Executive Director at Choice Broking, discussed the technical outlook for Precision Camshafts’ share price. He said, “On the daily chart, Precision Camshafts’ share price has just broken out of a Descending Triangle pattern. It is presently trading at ₹244.14. High trade volumes support this breakthrough at ₹225, suggesting that the current rise is strong. Positive price movement in addition to a persistent rise in volume might support the optimistic picture even further. A retest of higher levels in the ₹290 to ₹320 region may be possible if the price holds its position above the ₹250 mark.

The Relative Strength Index (RSI) is now at 79.25 and heading higher, suggesting stronger purchasing momentum, according to the Choice Broking analyst. Furthermore, PRECAM has overcome its major moving averages, including the short-term (20-day), medium-term (50-day), and long-term (200-day) EMAs, after emerging from the support zone.

Bagadia made the following recommendation to Precision Camshafts owners and new investors: “PreCAM looks well-positioned for a potential upward move given the current technical indicators and price action.” This is a potential trading opportunity as investors may think about purchasing on dips with an upside target range of ₹290 to ₹320.”