Highest-Conviction Momentum Stock – Paresh Gordhandas Power Calls

PIX Transmissions: Short-Term Buy for 4–6 Weeks

⭐ Chanakya Short-Term Pick

PIX Transmissions Ltd combines reasonable valuation, healthy capital efficiency and strengthening price momentum. The stock closed at Rs. 1,889 on 13 October, gaining 7.94%. Its positive MACD, RSI within our preferred range and price above major moving averages support selection for a 4–6 week opportunity. Prefer buying on controlled dips.

Why PIX Transmissions?

PIX Transmissions stands out through its combination of manufacturing strength and respectable profitability ratios. At a P/E of 19.5, the valuation is more measured than several expensive momentum names in the supplied shortlist. ROCE of 21.7% and ROE of 16.4% strengthen its fundamental appeal.

The company manufactures belts and related mechanical power transmission products. Its portfolio spans industrial, agricultural, automotive, lawn and garden applications. According to the supplied profile, more than 80% of products are sold under its own brand, largely in the aftermarket.

Quarterly profit increased 89.34% to Rs. 52.75 crore, while sales rose 22.80% to Rs. 149.25 crore. However, reported earnings include a meaningful other-income contribution. Investors should assess recurring operating performance before extrapolating that profit growth. www.business-standard.com

Improving Technical Momentum

The stock trades above its 50 DMA of Rs. 1,769 and 200 DMA of Rs. 1,657. The 50 DMA also exceeds the 200 DMA, supporting a constructive medium-term structure.

RSI at 65.5 falls within Chanakya’s preferred 56–68 range. MACD moved from −1.74 to 8.39, remaining above its signal of −1.91. The histogram expanded from 2.75 to 10.30, indicating a substantial improvement in momentum.

Daily volume was approximately ten times the monthly average, confirming unusually active participation. This does not prove institutional accumulation. Avoid chasing a large opening gap; consolidation should hold before committing any significant additional fresh capital.

Profit-Booking Strategy

Book 50% at Rs. 2,000. Move the stop loss for the balance to the actual purchase price, then hold for Rs. 2,090. Maintain the initial Rs. 1,735 stop loss and review after six weeks.

Paresh Gordhandas View

PIX Transmissions is our preferred manufacturing momentum candidate. Buy on dips at Rs. 1,820–1,850, with Rs. 1,735 stop loss and targets of Rs. 2,000 and Rs. 2,090.