Kinetic Motors Ltd. CMP: 31
About the Company: Established in 1984 by the Firodias of Kinetic Engineering – the leading manufacturers of mopeds -- Kinetic Motor Company Ltd, formerly known as Kinetic Honda Motor has a technical and financial collaboration with the world leaders in automobiles, Honda Motor Company, Japan. The Japanese collaborator which was holding 50.92% stake in the company divested its stake in favour of Kinetic Engineering for Rs 34.47 cr in 1998. At present Kinetic Engineering holds 50.92% stake in KMCL. The company got the status of a government-recognised Export House, in 1995-96. The company is planning to upgrade its present product range, develop new vehicle models using latest technology etc Due to intense competition, and entry of multinational giants in Indian market, the Company had been suffering losses in the past few years. In order to protect the interests of the stakeholders, the company entered in a deal with Mahindra & Mahindra Limited. Pursuant to the deal, the two wheeler business related assets have been transferred to Mahindra Two Wheelers Limited, a subsidiary of Mahindra & Mahindra Limited. The overall sales of two wheelers in Indian market have grown during the year under review. This has been mainly caused by the general economic slowdown. After achieving a debt-free status, your Company is now evaluating different avenues for newer businesses.
Technicals: The counter has been witnessing a continuous upside rally since the beginning of this year, after forming a strong bottom at 6-7 level. From that level it started to retrace back to the high of current level of 31.70, along with stable volumes. As per other technical indicators it is trading well above the crossover of 9 & 18 days WMA and 50 days SMA. This indicates the counter is bullish in medium to long term. 14 Days RSI is trading at 92 level, with upward bias. But according to this the counter is already in over bought zone; therefore we may see some correction in prices in the near term. Overall the trend remains positive for the counter. So anydip in price levels from here will be taken as an opportunity to make fresh long position. Immediate resistance is 33 which is acting as a small hurdle in the further up run of the counter.
Above it the counter may see a target of 39 and above that 52.
About the Company: Established in 1984 by the Firodias of Kinetic Engineering – the leading manufacturers of mopeds -- Kinetic Motor Company Ltd, formerly known as Kinetic Honda Motor has a technical and financial collaboration with the world leaders in automobiles, Honda Motor Company, Japan. The Japanese collaborator which was holding 50.92% stake in the company divested its stake in favour of Kinetic Engineering for Rs 34.47 cr in 1998. At present Kinetic Engineering holds 50.92% stake in KMCL. The company got the status of a government-recognised Export House, in 1995-96. The company is planning to upgrade its present product range, develop new vehicle models using latest technology etc Due to intense competition, and entry of multinational giants in Indian market, the Company had been suffering losses in the past few years. In order to protect the interests of the stakeholders, the company entered in a deal with Mahindra & Mahindra Limited. Pursuant to the deal, the two wheeler business related assets have been transferred to Mahindra Two Wheelers Limited, a subsidiary of Mahindra & Mahindra Limited. The overall sales of two wheelers in Indian market have grown during the year under review. This has been mainly caused by the general economic slowdown. After achieving a debt-free status, your Company is now evaluating different avenues for newer businesses.
Technicals: The counter has been witnessing a continuous upside rally since the beginning of this year, after forming a strong bottom at 6-7 level. From that level it started to retrace back to the high of current level of 31.70, along with stable volumes. As per other technical indicators it is trading well above the crossover of 9 & 18 days WMA and 50 days SMA. This indicates the counter is bullish in medium to long term. 14 Days RSI is trading at 92 level, with upward bias. But according to this the counter is already in over bought zone; therefore we may see some correction in prices in the near term. Overall the trend remains positive for the counter. So anydip in price levels from here will be taken as an opportunity to make fresh long position. Immediate resistance is 33 which is acting as a small hurdle in the further up run of the counter.
Above it the counter may see a target of 39 and above that 52.
Source: Internet (Valuenotes)
