Stock market today: Precision Camshafts share price jumps 14%. Is this a stock to buy today?

Stock market today: Precision Camshafts share price witnessed strong buying buzz during the early morning session after the company management announced positive guidance for the financial year 2024-25. Today, Precision Camshafts' share price opened with an upside gap at ₹203.78 apiece on the NSE and touched an intraday high of ₹234.18 per share within a few hours of the Opening Bell.

According to stock market experts, Precision Camshafts share price is skyrocketing today as the debt-free company expects growth in its domestic business from the OEMs. They expect up to ₹80 crore Capex build-up in FY25, and the company management has promised to get one more plant operational by the end of FY25. They said the stock has given a fresh breakout at ₹185 and is on the cusp of a fresh breakout at ₹240 apiece. On breaching the ₹240 level, they predicted Precision Camshafts shares to touch the ₹280 per share mark soon.

Triggers for Precision Camshafts shares

On the reasons that are fueling Precision Camshafts share price today, Seema Srivastava, Senior Equity Research Analyst at SMC Global Securities, said, "Bulls are putting their weight behind this debt-free company after the announcement of strong FY25 guidance on Wednesday. The company has cash with 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 the improvement of its sales and margins."

Seema Srivastava, a chartered accountant (CA) from SMC Global Securities, said Precision Camshafts shares are a portfolio stock that can be held for the medium to long term.

Precision Camshafts share price target

Speaking on the technical outlook of Precision Camshafts shares, Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, said, “Precision Camshafts share price is on an uptrend after giving a fresh breakout at ₹185 apiece level. The stock is on the cusp of giving another fresh breakout at ₹240. On decisively breaching ₹240, we can expect Precision Camshafts' share price to touch the ₹280 per share mark in the near term. So, those with Precision Camshafts shares in the portfolio are advised to hold the scrip, maintaining stop loss at ₹210 for the near-term target of ₹280.”

On the suggestion to fresh investors, Ganesh Dongre said, "Fresh investors are advised to wait for the fresh breakout at ₹240 or some correction after profit-booking. If the stock breaches below ₹210, it may touch the ₹190 per share level. Fresh investors can either buy around ₹190 or above ₹240."

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.