Sarda Energy: Sustaining Strong After a Major Breakout

Energy & Minerals has built a strong presence across steel, ferro alloys, mining and power. What I like about the business is that it is not dependent on just one segment, while the energy business has now become an important growth driver for the company. The company has also been expanding its power capacities, which can support growth going forward. Fundamentally, the recent numbers have also been healthy, with improvement in profitability and a strong contribution coming from the energy segment. For me, the key thing to track from here will be how efficiently the company executes its upcoming capacity expansion and whether the current earnings momentum sustains. Technical View: Technically, Sarda Energy gave a good breakout on the monthly timeframe in August last year. Since that breakout, the stock has been sustaining at higher levels instead of giving up the move. I personally like this kind of structure where, after a major breakout, the stock spends time holding and consolidating at higher levels. As long as this higher-level structure remains intact, the broader trend seems good.