FIIs’ favourite NBFC stock Mufin Green Finance on cusp of breakout. Is this a stock to buy today?

Stock market news: Mufin Green Finance shares have remained in the base-building mode after climbing to a lifetime high of ₹274.40 on the NSE in February 2024. The NBFC stock has been trading sideways for the last three months. However, it seems that value picking has begun in the small-cap stock. During the April to June 2024 quarter, FIIs raised their stake in the financial company from 0.11 percent to 0.49 percent.

According to stock market experts, the NBFC's financials are stable, and the company's business outlook seems positive. They said the stock is in the accumulation phase of ₹100 to ₹125 and can give a technical at ₹125 apiece. They advised long-term investors to accumulate Mufin Green Finance shares in the ₹100 to ₹105 zone, maintaining a stop loss at ₹90. However, they said fresh buying should be done only after the breakout above ₹125.

Triggers for Mufin Green Finance shares

Speaking on the triggers that may fuel Mufin Green Finance, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, "The outlook for the NBFC sector is positive as most of the banking companies have given positive business updates. However, some private lenders have delivered their Q1 results 2024 lower than the market estimates. From Mufin Green Finance's perspective, the company's financials are stable, and the company's business outlook is also positive." However, he said that NBFC stock is a 'portfolio stock' and medium to long-term investors can look at it as it is available at a discounted price.

Mufin Green Finance share price target

Speaking on the technical outlook of Mufin Green Finance shares, Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, said, “Mufin Green Finance shares are in the accumulation zone of ₹100 to ₹125. The NBFC stock is on the cusp of giving a fresh breakout at ₹125. So, those who have this stock can hold the scrip and wait for the breakout. They can accumulate Mufin Green Finance shares if the scrip comes from ₹100 to ₹105. However, they must maintain stop loss at ₹90.”

“On breaching ₹125 breakout on a closing basis, Mufin Green Finance shares may touch the ₹147 per share mark in the short term. Fresh investors are advised to buy and hold the scrip once the stock gives a technical breakout at ₹125 apiece level. On breaching the ₹147 target on a closing basis, the NBFC stock is expected to become highly bullish. Once the stock breaches exceed ₹147, Mufin Green Finance shareholders are advised to upgrade their stop loss to ₹120 from the currently suggested stop loss of ₹90.”

Mufin Green Finance news

The small-cap NBFC has informed the Indian stock market exchanges about the fundraising move, saying, "We would like to inform you that the Committee of the Board of Directors of the Company at its meeting held today, i.e., Tuesday, July 30, 2024, has inter-alia considered and approved raising of funds through issue of rated, unlisted, secured, senior, redeemable, taxable, transferable, non-convertible debentures denominated in Indian Rupees through private placement basis for amount upto INR 30,00,00,000 by the relevant provisions of applicable law and subject to approval of the applicable regulatory authorities."

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.