Precision Camshafts share price jumps 32% in three days. Should you buy this debt-free stock?

Stocks to buy next week: Precision Camshafts share price remained in base-building mode for nearly ten months. After climbing to its lifetime high of ₹319 apiece on the NSE, the debt-free stock remained an ideal 'sell-on-rise' stock after ushering in September 2023. However, Precision Camshafts shares have been on an uptrend for the last three sessions.

According to stock market experts, Precision Camshafts' share price witnessed a big upside after the strong guidance for FY25. The company management declared a strong business outlook on Wednesday that spurt the attention of Dalal Street bulls. They said that Precision Camshafts' share price has given a fresh breakout at ₹225, and it is on the cusp of providing another breakout at ₹250. If this hurdle is breached, the stock may go up to ₹320 apiece soon.

Precision Camshafts news

Speaking on the reasons for the rise in Precision Camshafts share price, Prathamesh Masdekar, Research Analyst atStoxBox, said, “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.”

"The company has cash of around Rs200-250 crores in the balance sheet and is almost debt-free. It's cash-rich and, on the development front, opening a new company to improve its business related to CAMSHAFT, which will likely be completed by the end of this financial year. Moreover, CAPEX, which the company's management is targeting, is around 70-80 crores from internal accrual. That would further support improving its sales and margins," the StoxBox expert added, giving Precision Camshafts shares a ‘stocks to buy’ tag.

Precision Camshafts share price target

Speaking on the technical outlook of Precision Camshafts share price, Sumeet Bagadia, Executive Director at Choice Broking, said, “Precision Camshafts share price is currently trading at ₹244.14 and has recently broken out of a Descending Triangle pattern on the daily chart. This breakout at ₹225 is supported by high trading volumes, indicating strength in the current move. A sustained increase in volume, coupled with positive price action, could further reinforce the bullish outlook. If the price maintains its position above the ₹250 level, it could pave the way for a retest of higher levels in the ₹290 to ₹320 range.”

The Choice Broking expert said that the Relative Strength Index (RSI) is currently at 79.25 and trending upward, indicating increased buying momentum. Additionally, PRECAM has rebounded from the support zone and surpassed its key moving averages, including the short-term (20-day), medium-term (50-day), and long-term (200-day) EMA.

On the suggestion to Precision Camshafts shareholders and fresh investors, Bagadia said, "Given the current technical indicators and price action, PRECAM appears well-positioned for a potential upward move. Investors might consider buying on dips for an upside target range of ₹290 to ₹320, making this a promising trading opportunity."

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.