Stock Of The Day : Polaris Consulting & Services Limited
CMP : 212
Recommendation: Buy
Targets : ?
Stoploss: ?
Duration: ?
Polaris Consulting & Services Limited, erstwhile known as Polaris Financial Technology Ltd will soon probably again change name to Virtusa Polaris, as now it majority stake has been acquired by Virtusa, a NASDAQ listed global IT firm.
In brief, the fundamentals are not bad, the sales has been considerably high and profitability has been steady. Can't say that it is making tons of money, but is neither losing it.
Technical picture is also not so gloomy. The stock price has been steady and less violent between 50 and 200 range which is not too much for a midcap/smallcap category stock such as Polaris.
Looking at the monthly chart the stock is trying to come out with a long underperformance and almost 15 years of range ceiling of 200. Above 220, we expect the stock to give fast 30-50% and eventually double in short time after that.
The merger will give rise to delisting hypes which will only fuel the stock rally and arbitrage and special situation funds to get on the band wagon.
We recommend a pure technical and situational buy with constant monitoring and swing trading.
Right entry time is crucial for trading in stocks like this.
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CMP : 212
Recommendation: Buy
Targets : ?
Stoploss: ?
Duration: ?
Polaris Consulting & Services Limited, erstwhile known as Polaris Financial Technology Ltd will soon probably again change name to Virtusa Polaris, as now it majority stake has been acquired by Virtusa, a NASDAQ listed global IT firm.
In brief, the fundamentals are not bad, the sales has been considerably high and profitability has been steady. Can't say that it is making tons of money, but is neither losing it.
Technical picture is also not so gloomy. The stock price has been steady and less violent between 50 and 200 range which is not too much for a midcap/smallcap category stock such as Polaris.
Looking at the monthly chart the stock is trying to come out with a long underperformance and almost 15 years of range ceiling of 200. Above 220, we expect the stock to give fast 30-50% and eventually double in short time after that.
The merger will give rise to delisting hypes which will only fuel the stock rally and arbitrage and special situation funds to get on the band wagon.
We recommend a pure technical and situational buy with constant monitoring and swing trading.
Right entry time is crucial for trading in stocks like this.
Relevant Charts are given for your reference. Click on the charts for bigger view.
This is only a brief commentary, you can contact us for complete research, analysis and view on the stock.
Views on stocks and market as a whole may change at any time, on account of changes in various types of macro related factors, company specific factors and such other news, events. So please do not hesitate to contact us in case you are following any of our research.
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