Sat Industries Limited, a diversified business group with a presence in over 100 countries, has recently caught the attention of investors due to a potential EMA crossover and impressive quarterly results. But is it the right time to invest? Let’s delve into the company’s fundamentals, technical analysis, and future prospects to find out.
Daily Chart Analysis
Examining the daily chart of SAT Industries reveals a compelling price action story.
Since its listing, the stock has been on an upward trajectory. In November 2021, it was trading near 57 rupees per share, soaring to over 130 rupees per share by 2023 – a remarkable 120% gain in a relatively short period. Currently closing at 115.50 on December 22, 2023, the stock presents an intriguing scenario with an EMA crossover. After dipping below the 20 EMA, the stock made a swift recovery, closing above the 8 EMA, signaling a potential bullish trend. If the price sustains, investors may find lucrative opportunities.
Impressive Quarterly Results
The company’s financial health is further underscored by its impressive quarterly results. In September 2023, SAT Industries reported a 8.63% increase in Net Sales to Rs 136.98 crore compared to Rs. 126.10 crore in September 2022. Notably, the Quarterly Net Profit surged by an astonishing 1297.59% to Rs. 175.23 crore from Rs. 12.54 crore in the same period last year. The EBITDA also witnessed a substantial increase, standing at Rs. 206.29 crore in September 2023, up by 1027.27% from Rs. 18.30 crore in September 2022. The company’s Earnings Per Share (EPS) rose from Rs. 1.18 in September 2022 to Rs. 15.46 in September 2023, reflecting robust financial growth.
Investment Areas
SAT Industries has strategically diversified its investments into emerging sectors, including food-tech, ed-tech, e-commerce, hyper-local services, digital media portals, hyper-local advertising, virtual reality products, and IoT products. The company has also shown a keen interest in nurturing innovation by investing in various venture capital funds that, in turn, support a multitude of startups.
Increasing Interest of FIIs
Foreign Institutional Investors (FIIs) are recognizing the potential of SAT Industries, evident in the escalating shareholding pattern. In December 2022, FIIs held 0.89 percent, a figure that has surged to 2.29 percent by September 2023. This surge indicates not only the market’s confidence in the company’s strong fundamentals but also hints at future plans that could bring about a transformative impact.
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