Karachi, Adamjee Insurance Company Limited (AICL) is demonstrating a bullish trend in the market, with key technical indicators supporting a positive outlook. Analysts at JS Research have recommended a 'Buy' stance on AICL based on both technical and fundamental analyses.
According to JS Research, from a technical standpoint, AICL is testing key resistance levels between 34.5 and 35.5. A breakout above these levels could initiate a fresh bullish move, with targets expected between 44 and 47 in the short term. In the medium term, investments could yield returns of up to 67% with a target of 57. The report also notes a bullish crossover between the 30-DMA and 50-DMA on the daily chart and rising trends in other indicators. On the downside, if the breakout does not occur, the price may decline to the 30-32 range, with a major stop-loss below 27.
Fundamentally, the research reiterates a 'Buy' rating on AICL, slightly raising the Sum of the Parts (SoTP) value to Rs64. This increase is attributed to the potential growth in dividends from the company's investment portfolio, notably from its significant stakes in MCB, PKGP, and LPL. The possibility of higher earnings and dividends from these investments could significantly benefit AICL.