52-Week High Alert: Stocks to Buy Before They Hit New Highs

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Net profit of this ship-building company zooms over 59%; stock jumps 12%

Monday deals close on a mixed note, the Sensex wrapped up the trading session on a positive trajectory, with a modest uptick of 0.12%. Likewise, the Nifty also clinched marginal gains, edging higher by a slight 0.03%.

Navigating through market sentiments, the shares of Garden Reach Shipbuilders & Engineers Limited surged 12.69%, additionally, the stock hits a fresh 52-week high mark of Rs 666.45 per share on BSE. Furthermore, the scrip witnessed a massive spurt in volume by more than 16.19 times. This indicates heavy buying among investors. The reason for this surge was primarily attributed to companies spectacular Q1 performance. Let’s have a look:

Financial Results (Q1 FY2024) - QoQ Comparison

The company’s revenue demonstrated an encouraging 25.79% rise, reaching Rs 756 crore from the previous Q4 FY23 figure of Rs 601 crore. This period also witnessed an impressive upswing in EBITDA, which reached Rs 46 crore, marking a significant 130% increase compared to the performance in Q4 FY23 on a sequential basis. Furthermore, the Profit After Tax (PAT) saw growth, standing at Rs 102 crore, showcasing a notable 34.21% increase. This performance highlights the company’s positive momentum and growth trajectory.

Financial Results (Q1 FY2024) - YoY Comparison

In the initial quarter of FY24, the company’s revenue demonstrated an impressive growth rate of 30.34%, ascending to Rs 756 crore from Rs 121.1 crore in Q1 FY23. Simultaneously, the operating profit experienced a substantial rise of 39.39%, amounting to Rs 46 crore. The net profit displayed remarkable expansion, surging to Rs 102 crore, marking a substantial increase of 59.37%.

Further bifurcating the revenue contributors, the largest contributor is the Shipbuilding segment, accounting for a substantial 89.39% of the revenue. Following the trail, the Bailey Bridge segment contributes 3.42%, while the Diesel Engine segment holds a share of 3.18%. This distribution highlights the company’s strategic allocation of resources across various sectors to ensure a well-balanced and dynamic growth trajectory.

Zooming out to the shareholding pattern, it reveals that the President of India holds a substantial stake of 74.50%. This coincides with the notable trajectory of Foreign Institutional Investors who increased their holdings from 2.68% to 3.11% in the quarter ending June 2023.

Garden Reach Shipbuilders & Engineers Ltd, overseen by the Ministry of Defence, is India’s top shipbuilding company, serving the Indian Navy and Coast Guard.

The stock has witnessed significant buying activity surging more than 243% in the last 2 years.

Keep a close eye on this trending stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.

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This Tyre company acquires SG Acquisition Corporation, USA for USD 3 million - 1 November, 2023

On Friday, shares of the company surged over 4% and traded at its new 52-week high of Rs 4,195.

TVS Srichakra is an integral component of the TVS automotive-ancillary conglomerate. The company specializes in the production and global export of tires for Two and Three-Wheelers as well as Off-Highway vehicles. TVS Srichakra holds a prominent position as a primary OEM provider for TVS Motors and several other renowned brands in the industry.

TVS Srichakra recently announced that it has made an investment in SG Acquisition Corporation, based in the USA. This investment involves the subscription of 300 Common Shares, each priced at USD 10,000, resulting in a total investment of USD 3 million in SG Acquisition Corporation, USA. As a result of this investment, the company now holds a 100% ownership stake in SG Acquisition Corporation, USA.

It is important to note that SG Acquisition Corporation will assume and take over the assets, liabilities, and business operations of Super Grip Corporation, USA. The target company, SG Acquisition Corporation, was registered in the state of Michigan, United States of America, on September 5, 2023.

This investment is not considered a related party transaction, and none of the promoters, promoter groups, or group companies have any interest in the entity being acquired. The transaction between SG Acquisition and Super Grip Corporation is also not a related party transaction.

SG Acquisition Corporation primarily focuses on Off Highway Tyre Products, which aligns with the company’s objective to expand its business in the USA.

No governmental or regulatory approvals are required for this acquisition, as it falls under the automatic route of ODI under FEMA.

The acquisition is solely for cash consideration, with a total cost of USD 3 million, representing the purchase of 300 Common Shares. The company has acquired a 100% shareholding in SG Acquisition Corporation by purchasing 300 Common Shares.

The company has delivered returns of 67% over the past year and stellar returns of 194% over the past 3 years. Moreover, the company has a ROCE of 9.23% and a ROE of 8.16%.

On Friday, shares of the company surged over 4% and traded at its new 52-week high of Rs 4,195. Additionally, the scrip had a spurt in volume by more than 1.07 times.

Investors should keep a close eye on this trending stock.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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November 6, 2023: Multibagger stock HBL Power System hits 52 week high; here’s why

Over the past six months, the company’s shares have delivered a multibagger return of 198.64%

Today, the Nifty closed above 19,400 in the green. HBL Power System, a small-cap company engaged in the manufacturing of dry cells, reached a 52-week high today at Rs 330 and surged by 7.14%. In the last trading session, the stock closed at Rs 287.80. Today, it opened at Rs 320.60 and closed at Rs 308.35, marking a 7.14% increase. The stock reached a 52-week high at Rs 330 today, which was up by 14.66% from the closing of the last trading session, while its 52-week low stands at Rs 86.10. The company currently boasts a market capitalization of approximately Rs 8,500 crore.

Over the past six months, the company’s shares have delivered a multibagger return of 198.64%, and over the past year, the return has been an impressive 187.24%. In the same time frame, the Sensex has returned 6.39% and 6.58%, respectively. Today’s surge is primarily attributed to the impressive financial results and outlook of the company for the second quarter and half-year ending on September 30, 2023.

HBL Power Systems Ltd (HBL) specializes in creating and producing batteries and electronic solutions tailored to demanding applications across various key sectors, including Telecom, UPS, Railways, Power, Oil & Gas, Industries, and Defence, among others. HBL’s products are distributed in over 30 countries. The company is headquartered in Hyderabad and operates five integrated manufacturing facilities situated in Telangana and Andhra Pradesh. As of FY23 (with a slight shift in Q1FY24), the battery division contributes significantly to the company’s revenue, accounting for approximately 74% (69.4% in Q1FY24), followed by the defence sector at around 13.4% (approximately 7% in Q1FY24), and the electronics segment at roughly 10% (17% in Q1FY24). HBL stands as world’s second-largest manufacturer of Nickel-Cadmium (Ni-Cd) batteries with Pocket Plate, Sintered Plate, and Fibre Plate technologies.

Talking about the financials of the company, on a consolidated basis, in Q2FY24 the company recorded a financial performance with a 242.15% year-on-year increase in net profit, reaching Rs 68.67 crore compared to Rs 20.07 crore in the corresponding quarter of the previous year. During the second quarter of FY24, the company’s total net revenue showed an increase of 75.99% from Rs 318.16 crore to Rs 559.94 crore compared to the same quarter in the preceding year.

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Multibagger stock PFC hits 52-week high on 7 November 2023; know why

Over the past one-year shares of the company have given multibagger returns of over 176%.

Power Finance Corporation which is an NBFC extending its financial assistance to the Indian power sector hit a 52-week high today at Rs 266.35.

In the last trading session, the stock closed at Rs 260.95. Today, it opened at Rs 261.05 and closed at Rs 262.95, up by a 0.77% increase. The stock has hit back-to-back 52-week highs from the past few days and today also it hit a fresh 52-week high at Rs 266.35, while its 52-week low stands at Rs 93.20. The company currently boasts a market capitalization of approximately Rs 86,700 crore.

Over the past six months shares of the company have given a stellar return of 94.78%, in the same time frame BSE Financials Services has given a return of 6.62%, and over the past one-year shares of the company have given a multibagger return of 176.32%, in the same time frame BSE Financials Services has given a return of 8.44%.

The recent upswing in the stock price can be attributed to the market’s eager anticipation of the forthcoming financial results. This anticipation has been fueled by the company’s announcement of a scheduled board meeting on November 8, 2023, during which they will review and approve the unaudited financial results for the second quarter and the first half of the fiscal year, ending on September 30, 2023.

Power Finance Corporation (PFC) is a Schedule-A Navratna CPSE and is a leading Non-Banking Financial Corporation in the Country. The company is under the administrative control of the Ministry of Power and is classified as an Infrastructure Finance Company by the RBI. PFC plays a crucial role in the rise of India as a global player. Increasingly, a country’s development is gauged by measuring its energy usage. With a large fraction of its nation still, unfortunately, without any access to electricity, the company will become an increasingly important factor in the years to come.

The company is engaged in providing financial assistance to Power Utilities to meet financing and development requirements of the power sector. To meet its fund requirement, PFC has been raising funds by way of issuance of bonds, term loans from Banks/FIs and ECBs, etc.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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Lupin hits 52-week high on launching Rocuronium Bromide Injection in United States

Rocuronium Bromide Injection had estimated annual sales of USD 54 million in the United States.

At 12:30, the Lupin shares were trading at Rs 1214.10, up by 2.09% from its previous closing of Rs 1189.20 on the BSE.

Lupin has launched Rocuronium Bromide Injection, 50 mg/5 mL (10 mg/mL) and 100 mg/10 mL (10 mg/mL) Multiple-Dose Vials, after Lupin’s alliance partner Caplin Steriles (Caplin) received an approval for its ANDA from the United States Food and Drug Administration (USFDA).

Rocuronium Bromide Injection, 50 mg/5 mL (10 mg/mL) and 100 mg/10 mL (10 mg/mL) Multiple-Dose Vials is the generic version of Zemuron Injection, 50 mg/5 mL and 100 mg/10 mL of Organon USA Inc and is indicated for inpatients and outpatients as an adjunct to general anesthesia to facilitate both rapid sequence and routine tracheal intubation and to provide skeletal muscle relaxation during surgery or mechanical ventilation. Rocuronium Bromide Injection (RLD: Zemuron) had estimated annual sales of USD 54 million in the US. (IQVIA MAT August 2023).

Earlier, the company received tentative approval from the USFDA for its Abbreviated New Drug Application for Canagliflozin and Metformin Hydrochloride Extended-Release Tablets. This product will be manufactured at Lupin’s Pithampur facility in India.

Canagliflozin and Metformin Hydrochloride Extended-Release Tablets are indicated as an adjunct to diet and exercise to improve glycemic control in adults with type 2 diabetes mellitus. Canagliflozin and Metformin Hydrochloride Extended-Release Tablets (RLD Invokamet XR) had estimated annual sales of USD 28 million in the U.S. (IQVIA MAT July 2023).

Lupin is an innovation led transnational pharmaceutical company producing, developing and marketing a wide range of branded and generic formulations, biotechnology products and active pharmaceutical ingredients (APIs) globally.

On Wednesday, the stock opened at Rs 1211.90 and has touched a high and low of Rs 1224.90 and Rs 1198.35 respectively. The BSE group ‘A’ stock of face value Rs 2 has a 52-week high and low of Rs 1224.90 and Rs 628.10, respectively. Last one week high and low of the scrip stood at Rs 1224.90 and Rs 1135.00 respectively. The current market cap of the company is Rs 55,257.11 crore.

The promoters holding in the company stood at 47.06%, while Institutions and Non-Institutions held 44.42% and 8.52% respectively.

Disclaimer: This posthas been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.

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ONGC to invest Rs 1 lakh crore in two petrochemical plants; shares hit a new 52-week high

The company plans to scale up its renewable portfolio to 10 GW by 2030.

Oil & Natural Gas Corporation Ltd (ONGC) which is a Maharatna and in the business of Crude Oil and Natural Gas has planned to invest about Rs 1 lakh crore in setting up two petrochemical plants to convert crude oil directly into high-value chemical products as it prepares for energy transition. The company is also looking to build separate oil-to-chemical (O2C) projects.

The investment in O2C plants is separate from the Rs 1 lakh crore investment ONGC has declared in energy transition projects by 2030, which will help it achieve net zero carbon emissions by 2038. Net zero for a company means achieving a balance between the quantum of greenhouse gases it places into the atmosphere and the amount it takes out. ONGC plans to scale up its renewable portfolio to 10 GW by 2030.

Today, the stock opened at Rs 202.75 and closed at Rs 201.85, up by a 1.20% increase. Today it also hit a 52-week high of Rs 203.35 while its 52-week low stands at Rs 132.95. The company currently boasts a market capitalization of approximately Rs 2,53,900 crore. Over the past one year shares of the company have given a return of 41.25%, in the same time frame BSE Energy has changed by 0.67% and BSE Oil and Gas has generated a negative return of -1.49%.

Recently, the company has also declared an interim dividend of Rs 5.75 per equity share with a face value of Rs 5 for the financial year 23-24. The company has fixed the Record Date as November 21, 2023, for determining the eligibility of shareholders for the payment of Interim dividend. The dividend will be paid to the eligible shareholders on or before December 10, 2023.

ONGC is India’s largest government-run corporation and produces about 70% of India’s crude oil and natural gas. The corporation is the biggest public sector commercial organization in India.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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PNB Housing hits 52-week high on planning to raise Rs 3,500 crore through NCDs

Over the past one year shares of the company have given multibagger returns of 132.61%, in the same time frame BSE Financial Services have changed by 7.78%.

Today Sensex closed in red by 0.28% and BSE Financial Services closed down by 0.83% mainly due to the new policy of the Reserve Bank of India (RBI) on tightening norms on consumer loans, raising risk weight on credit exposure. Post this development, PNB Housing Finance Ltd which offers loans to retail customers for housing and non-housing hit a fresh 52-week high today.

Today, the stock opened at Rs 776.25 and closed at Rs 807.10, up by 4.09%. Today shares of the company hit a fresh 52-week high at Rs 815 while its 52-week low stands at Rs 340.68. The company currently boasts a market capitalization of approximately Rs 20,955 crore. Over the past one year shares of the company have given multibagger returns of 132.61%, in the same time frame BSE Financial Services have changed by 7.78%.

The surge in price was because of the news that PNB Housing Finance is planning to raise up to Rs 3,500 crore through the issuance of Non - Convertible Debentures (NCDs) on a Private Placement Basis, in tranches over the next six months. A meeting of the Board of Directors of the company is scheduled to be held on November 24, 2023, to consider and approve the same.

PNB Housing Finance Limited is a registered housing finance company with National Housing Bank (NHB). PNB Housing is promoted by Punjab National Bank (PNB). PNB Housing provides housing loans to individuals and corporate bodies for the purchase, construction, repair and upgradation of houses. It also provides loans for commercial space, loans against property and loans for purchase of residential plots.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.