Heritage Foods, Amara Raja, Jubilant Industries hit upper circuit limit, here’s why

At 11.30 on Tuesday over 120 stocks hit the upper circuit and 29 hit lower circuit limits. The Nifty50 was trading at 23,571 levels up 0.14% and Bank Nifty was hovering at 52,022.50, up 0.62%. Nifty Midcap, Nifty FMCG and Metals looked weak and traded in the red zone.

In the morning session on Tuesday, on NSE, 120 stocks hit the upper price band (Upper circuit) and 30 stocks hit the lower price band (Lower Circuit).

Here is the list of stocks (market cap above ₹1,000 crore) locked in upper and lower circuits in today’s trading session.

Stocks hitting the upper circuit on June 25, 2024

The stock price of Heritage Foods has already gained 60% in the last one month and life high at ₹727.35 on June 10, 2024. In the previous few sessions, the stock had witnessed profit booking after the massive rally. Recently the price band of the stock was revised from 10% to 5% as the stock has shown drastic movements.

Financials of the company look decent with consolidated net profit of YoY basis growing at 84% in FY24 from ₹58 crore to ₹107 crore. The revenue has grown at 17% YoY basis in FY24.In Q4FY24 company’s operating margins were at 7% against 5% in the previous two quarters. Recently the company has launched new products to further expand in the FMCG category and increase brand presence.

The trigger for today’s movement is related to the announcement by the company, the battery maker, has entered into a technical licensing agreement with China-based Gotion High-Tech. As part of the agreement, Gotion High-Tech’s unit GIB EnergyX will license Gotion’s LFP technology for lithium-ion cells to Amara Raja Advanced Cell Technologies Pvt Ltd (ARACT).

Gotion High-Tech has 8 global R&D centres, 8,000 patented technologies covering the battery industry value chain, 20 major manufacturing locations around the world, and a capacity layout expected to reach 300 GWh by 2025. This partnership is expected to help Amara Raja accelerate the development of its Gigafactory

In the last one month, the stock has zoomed 30%. July 18, 2024, is the record date for the company's final dividend of ₹5.10.

In Q4FY24, a triple-digit growth was seen in the net profit at ₹22 crore against a loss in Q3FY24 at ₹- 23 crore. The company has also announced a demerger plan in the last months for Jubilant Agri and Consumer Products, a wholly-owned subsidiary of the company under which its Agri Products and Sulphuric Acid Business will be demerged in a separate company. The demerger is expected to provide a better focus on the performance of polymers business and also help in diversifying its agribusiness.

The stock price has surged 61% in the last one month post-demerger plan.

Stocks hitting lower circuit on June 25, 2024

On June 21, the stock went ex-date for a 1:5 split. This means June 21, 2024, was the record date for determining the entitlement of equity shareholders for the purpose of the sub-division/split of existing equity shares of the company. As a result, one equity share with a face value of ₹10 each will be subdivided into five equity shares with a face value of ₹2 each.

Generally to enhance the liquidity of the company's equity shares in the stock market and to encourage the participation of retail investors by making equity shares of the company more affordable, the board of directors split the shares keeping the original value intact.

In the last one month, the stock of Premier Explosives has zoomed 55% and 818% in the last one year. The company is engaged in the manufacture of explosives, detonators, propellants, services, and other traded items. Its product portfolio includes defence products and commercial explosives.