Stock to buy: Anand Rathi recommends THIS share as ‘pick of the month’; sees 11% upside - Do you own?

Stock to buy: Brokerage firm Anand Rathi has chosen Cochin Shipyard as its ‘pick of the month’. The brokerage firm has given a target price of ₹1660, seeing an upside potential up to 11 per cent.

The brokerage further noted that the stock has successfully broken out above the ₹1,500 level following a prolonged consolidation phase. It highlighted that the price pattern resembles an Inverse Head and Shoulders formation, which is considered a bullish indicator.

“After a long consolidation, finally the stock has managed to confirm a breakout above 1500 mark. The price structure resembles an inverse head and shoulder pattern which is bullish in nature,” Anand Rathi said in a note.

How does Cochin Shipyard stock looks like in near-term?

Additionally, the brokerage noted that the price movement is backed by strong trading volumes and favorable positioning of momentum indicators, supporting a bullish outlook on the stock.

Anand Rathi recommended buying the stock around ₹1,500, setting a stop loss at ₹1,420.

“Price action is supported with volumes and positive placement of momentum oscillators. Thus, we advise traders to buy the stock near 1500 with a stop loss of 1420 for upside target of 1660,” it added.

Cochin Shipyard share price was up 2 per cent in Tuesday's trading session. At 11:25 am, the defense stock touched an intraday high to ₹1,504.9 on April 22.

The stock has gained over 4 per cent in past five trading session. In terms of year-to-date, the scrip has descended over 4.63 per cent, falling from ₹1,567 to current market levels.

Cochin Shipyard Limited (CSL), a prominent public sector undertaking under the Ministry of Ports, Shipping, and Waterways, is based in Kochi, Kerala. Established in 1972, the company has evolved into a leading force in India’s shipbuilding and ship repair sector.

Disclaimer: This story is for educational purposes only. 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.