Raymond, Siyaram Silk clock stellar run on strong Q2; eye up to 30% upside

Raymond zoomed 3 per cent on Friday to hit an all-time high of Rs 1,329.90, after having gained 7 per cent in the previous session.

Shares of textile majors Siyaram Silk Mills, and Raymond were on a stellar run on Friday after the two delivered strong results for the July-September quarter (Q2FY23). Siyaram Silk Mills spiked 19 per cent, reaching an intra-day high of Rs 568 on Friday, while Raymond zoomed 3 per cent to hit an all-time high of Rs 1,329.90, after having gained 7 per cent in the previous session. 

Siyaram Silk Mills, an Indian blended fabric and garment-manufacturer with operations in Middle East, Srilanka, and India too, reported a near double profit in Q2FY23 over the last quarter. The company posted a net profit of Rs 80 crore compared to Rs 41 crore in Q1FY23. Its net profit was Rs 53 crore in the same quarter last year. In addition, the company declared a 200 per cent divided of Rs 4 per equity share on a face value of Rs 2 per share.

Raymond posted a net profit of Rs 161.95 crore in Q2FY23 compared to Rs 56.26 crore in the previous year. Its quarterly revenue from operations increased 39.76 per cent to Rs 2,168.24 crore from Rs 1,551.32 crore in the year-ago period. 

Here’s a technical outlook for the two stocks:-

Siyaram Silk Mills Ltd (SIYSIL)

Likely target: Rs 600

Upside potential: 11%

After nearing a new historic peak in April this year, Siyaram Silk Mills has managed to deliver a 25 per cent ascent so far in 2022. The present formations on charts materialize into a breakout post fabricating an accumulation phase near Rs 400 level. The "Double Bottom" pattern on the daily chart with a breakout texture pointing towards Rs 600, which is the impending hurdle since June 2022. 

Henceforth, Rs 500 to Rs 480 sounds as a cushion range. Until this range is not shattered, the positive bias aims to gradually increase the bullish strength.

During the current breakout, volumes have remained supportive. This exhibits the interest of market participants, which may see addition if the counter succeeds to hold ground over Rs 500. CLICK HERE FOR THE CHART

Raymond Ltd (RAYMOND)

Likely target: 16% to 30%

Upside potential: Rs 1,500 to Rs 1,700

Raymond is striving to cross the obstacle range of Rs 1,250 to Rs 1,300, which it has struggled to leap over since June this year. Once done, the breakout would spell a buoyant rally for the stock. In the short-term, the positive move could lead the stock to rally to Rs 1,500 level.

Overall texture on charts continues to foster an optimistic sentiment for the stock. With the support at Rs 1,050 and Rs 1,150 levels, it could even surpass Rs 1,500, leading a medium-term rally to Rs 1,700. CLICK HERE FOR THE CHART