TVS Supply Chain share price zooms 16% in subdued market; here's why

TVS Supply Chain Solutions shares defied the market weakness on Monday, surging more than 16 per cent in intraday trade. The stock opened on a flat note but soon attracted strong buying interest, hitting a high of ₹141 on the National Stock Exchange (NSE).

 

The buying momentum came after the logistics solutions provider announced that it had signed a pact with Japan-based Sankyu Inc to collaborate across supply chain and engineering services.

 

As of 1:30 PM, TVS Supply Chain Solutions shares were trading 11 per cent higher at ₹134.85. More than 22 million shares had changed hands on the NSE.

 

 

In comparison, the benchmark Nifty 50 index was trading 0.22 per cent lower at 24,202.

 

As part of the memorandum of understanding (MoU), Sankyu intends to acquire a 0.5 per cent stake in TVS Supply Chain Solutions, subject to customary regulatory approvals.  Check - TOP GAINERS NSE | TOP LOSERS NSE

 

Under the partnership, the companies will explore opportunities to deliver enhanced value through a broader portfolio of solutions spanning logistics, warehousing, transportation, engineering services, maintenance and on-site industrial support.

 

The collaboration will initially focus on opportunities in India, where both companies see significant potential to support manufacturing and industrial customers through a broader range of supply chain and engineering services.

 

Over time, the collaboration is expected to expand into other markets across Asia, the Middle East and Africa, leveraging the combined capabilities of both organisations.  TVS Supply Chain stock: Analyst view  

Harish Jujarey, technical equity research analyst at Prithvi Finmart, said that after witnessing some profit booking in the early part of August, TVS Supply’s stock price found support near its 200-DMA and rebounded sharply in today’s session. The stock has also formed a Golden Crossover, with the 50-DMA moving above the 200-DMA, indicating a positive trend. However, the immediate resistance is placed around the previous swing high of ₹146 - ₹147.

 

"A sustained move above ₹147 would be important for the stock to start a fresh leg of the uptrend. Hence, traders who have bought at lower levels can consider partial profit booking around the ₹145 - ₹147 range and hold the remaining position for a potential breakout above ₹147," he said.  TVS Supply Chain Solutions, a part of the TVS Mobility Group, has pioneered the development of the supply chain solutions market in India.   

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