Aptus Value Housing Finance India, NALCO and Redtape touch fresh 52-week high; here’s why

On Monday, 67 stocks advanced to 52-week highs. The benchmark indices, NIFTY50, traded at a 25,116 level, up 0.61%, and SENSEX at 81,934 level, up 0.68%. The Nifty Bank is at the 51,731 mark, up 1.09%, while the fear gauge India VIX fell to 13.21 level, down 0.07%.

The broader market indices traded in mixed, with Nifty Midcap 100 down 0.05% and Nifty Smallcap 100 up 0.12%. The major sectoral indices traded mixed, with Nifty Realty up 1.21%, the top gainer, while Nifty Media traded down 0.92%, being the top loser.

Top three stocks that hit a fresh 52-week high on Monday, October 14, 2024

Aptus Value Housing Finance India Ltd

The mid-cap housing finance company’s share price traded to a 52-week high at ₹399.4 after skyrocketing 10.7% in Monday’s trading session. The company's market cap reached ₹19,969 crore.

The stock witnessed a strong buying interest as trade volume surged to 83.07 lakh shares with a trade value worth ₹324.75 crore.

In the last one month period, the share price has soared by 18%. In Q1FY25 company's financial performance improved with Return on Equity (RoE) expanding to 18.1%, from 16.9% on a QoQ basis, mainly driven by lower credit cost. While Aptus remains one of the most cost-efficient- AHFC lenders with a steady cost-income ratio of 21% versus its peer’s 30%. Additionally, Assets Under Management (AUM) grew by 27% YoY to ₹9,072 crore and disbursements increased by 4% YoY to ₹675 crore in Q1FY25.

The company remains focused on growing disbursements and loan books in Housing Loans and Small Business Loans, targeting the low and middle-income segments and plans to open 40 new branches in FY25, with 16 branches already opened in Karnataka, Telangana, and Maharashtra.

The company’s management remains confident in achieving a disbursement target of ₹1,000 crore in Q2FY25, supported by positive growth trends observed in July with an overall guidance of 30% growth in disbursements for the fiscal year.

Aptus is primarily engaged in the housing finance industry catering to self-employed, low and middle-income families primarily from semi-urban and rural areas. The company targets first-time home buyers where collateral is self-occupied residential property.

Shares of Aptus have so far surged 19% on a year-to-date basis in 2024.

National Aluminium Company (NALCO) Ltd

The Navratna Central Public Sector Enterprise scrip traded 4.28% higher on Monday, peaking at a 52-week high at ₹232.45.

The metal stocks gained upward momentum with NALCO share price up 19.6% in the last one month in anticipation of the Chinese government's stimulus package.

However, on October 12, China's Minister of Finance, Lan Foan, pledged to significantly increase debt. But, the lack of details on the overall size of the stimulus and no measured fiscal number released, investors remained uncertain.

Despite China being the world's top metals consumer holding back on more aggressive stimulus measures, NALCO share surged with investors remaining bullish on the rise in Aluminum price in the near term, supported by a balanced market projected to face a 500kt (Kilo tonne) deficit in 2025, due to rapid growth in China’s EV, battery, and solar sectors, a shift in the interest rate cycle, and potentially more effective stimulus measures from China soon.

In 2024, NALCO shares rallied 66% on a year-to-date basis.

Redtape Ltd

The leading footwear company’s stock surged to a 52-week high of ₹930, rising 11.56% during Monday's morning session.

The stock is witnessing investors' interest with the share price up over 23% in the last one month. Investors are optimistic about the growth of the company with revenue to increase further with strong domestic demand from metro cities and increasing penetration in tier II cities over the medium term.

According to the company, the growth of the retail sector and e-commerce is expected to boost growth for the footwear and retail industry. Rising disposable incomes are also expected to stimulate domestic demand.

To tap the demand, Redtape plans to open around 100 retail outlets across India, with a particular focus on expanding its presence in South India. Additionally, to capitalise on urbanisation in tier II and III cities, the company's management aims to capture growth and diversify its customer base through strategic expansion and an advanced, diverse footwear range, including outdoor, performance and women's shoes.

The outlook for Redtape remains optimistic on account of the company's advantage from strong brand recall across product categories, a wide variety of product offerings, a strong presence in metros and tier I cities and improving penetration in tier II and III cities.