Olectra Greentech corrects on profit selling

Olectra Greentech dropped 8.19% to Rs 491.90 on profit selling after recent steep gains.

Shares of Olectra Greentech surged 39.26% in the past three trading sessions.

The stock hit a 52-week high of Rs 739.4 on 6 April 2022. The stock hit a 52-week low of Rs 374.35 on 23 February 2023.

The stock had outperformed the market over the past one month, rising 5.56% compared with 0.7% decline in the Sensex.

The scrip outperformed the market in past one quarter, falling 5.18% as against Sensex's 5.74% slide.

The scrip had underperformed the market in past one year, falling 22.75% as against Sensex's 4.75% rise.

On the technical front, the stock's daily RSI (relative strength index) stood at 56.56. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

On the daily chart, the stock was trading below its 100-day and 200-day simple moving average (SMA) placed at 513.16 and 559.96, respectively. These levels will act as crucial resistance zones in near term.

Meanwhile, the company announced on 24 February 2023, that it has developed a Hydrogen bus with its technology partner, Reliance. The Hydrogen bus is a fully carbon-free alternative to traditional public transportation. In the wake of the depletion of natural resources and the negative impacts of air pollution and emissions, Olectra has taken the initiative to accelerate the development of Hydrogen-powered buses.

The hydrogen buses generate only water as tailpipe emissions. This is the unique selling proposition for phasing out old diesel and petrol systems and replacing them with these green buses, said the company. Type-4 hydrogen cylinders are established on the top of the bus. The cylinders can withstand temperatures between -20 and +85 degrees Celsius.

Olectra Greentech is engaged in manufacturing electric buses in India. It is also India's largest silicone rubber/composite insulators manufacturer for power transmission and distribution networks.

On a consolidated basis, the company's net profit rose 13.6% to Rs 14.38 crore on 23.1% jump in net sales to Rs 256.43 crore in Q3 FY23 over Q3 FY22.

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