Home / Markets / Stock Markets /  Why multibagger stock Aarti Drugs surged 12% today
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Multibagger stock: Aarti Drugs shares had ended lower on Tuesday session but after the news of Directorate General of Trade Remedies (DGTR) completing its enquiry after accepting the application of the drug maker company to impose anti-dumping duty on Chinese export of Ofloxacin — popularly known as fluoroquinolone antibiotic. aarti Drugs share price today opened with big upside gap and went on to hit intraday high of 489.95 apiece levels on NSE, logging more than 12 per cent jump from its Tuesday close of 423.15 apiece levels.

According to stock market experts, Aarti Drugs shares are rising after the news break of DGRT completing its enquiry on the Aarti drugs application that demanded anti-dumping duty on Ofloxacin import from China. The drug maker company had demanded in its application to impose anti-dumping duty on the drug to provide levels playing field for the company and its domestic peers. The DGTR had accepted its plea and has now finished its enquiry. However, market experts maintained that the DGTR is yet to give its final decision but on chart pattern, the stock has given fresh breakout above 450 apiece levels. They said that one can buy this pharma stock at around 460 for the short term target of 532 maintaining stop loss at 440 levels."

speaking on the reason for rise in Aarti Drug share price, Saurabh Jain, Vice President — Research at SMC Global Securities said, "This rise in the pharma stock is due to the new break of DGTR finishing off its enquiry on the Aarti Drugs application to impose anti-dumping duty on Ofloxacin imports from China. As the DGTR has completed its report, market is buzz about some favourable outcome of this enquiry. However, one should wait for the final proposal of the DGTR. The company has reported loss in operation margins in both QoQ and YoY basis."

Advising positional investors to wait for the profit booking as the stock has already surged more than 12 per cent, Ravi Singhal, CEO at GCL Securities said, "On technical chart pattern, Aarti Drugs share price has given breakout above 450 apiece levels and it has made its base around 450 levels. So, one should wait for some profit booking and buy around 460 apiece levels for short term target of 532 maintaining stop loss at 440 per share mark."

Aarti Drugs shares are one of the multibagger stocks that Indian stock market has produced in last few years. In last 5 years, this pharma stock has risen from around 125 to 475 apiece levels, logging near 275 per cent jump in this period.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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