Multibagger realty stock hits lower circuit. Should you buy?
1 min read 21 Feb 2022, 01:11 PM ISTThe multibagger realty stock is still up more than 109% in 2022 (year-to-date or YTD) so far
PremiumShares of DB Realty hit lower circuit level by plunging 5% to ₹102 apiece on the BSE in Monday's trading session. The multibagger stock has been continuously hitting the lower circuit levels in the past few trading sessions. Though, it is still up over 109% in 2022 (year-to-date or YTD) so far.
"DB Realty stock is trading under very high speculations though lesser volume. The fundamentals are weak and outlook is negative. On technical setup, the stock may touch the level of 80 with this momentum and high volatility. Investor may remain cautious and avoid taking any fresh positions in this stock at current levels," said Ravi Singh, VP and Head of Research at Share India Securities
The stock has been buzzing in the last month amid the Mumbai-based realty firm's fundraising plans and the announcement of Jhunjhunwala taking part in the company's warrant issue.
Earlier this month, DB Realty had approved to raise funds via issue of 50 million warrants convertible into equivalent number of equity shares. The company will issue warrants to non-promoter investors on preferential basis which includes ace investor Rakesh Jhunjhunwala's wife Rekha Jhunjhunwala, who will be issued 1,00,00,000 warrants through RARE Investments.
Sumeet Bagadia of Choice Broking has advised investors to avoid long term position as the realty stock has been continuously going down, hitting lower circuit levels.
The multibagger stock has rallied over 38% in a month whereas it has surged over 400% in the last six months. From trading over ₹18 per share level in February 2021, the realty stock has skyrocketed more than 340% in a year's period.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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