Avenue Supermarts (Dmart), Divi’s Laboratories, and Inox Wind touched fresh 52-week high; here’s why

On Tuesday, over 113 stocks advanced to 52-week highs. The benchmark indices, NIFTY50, traded at the 24,968 level, down 0.13%, and Sensex was at the 81,731 level, up 0.21%. Nifty Bank was flat at 51,122 level, up 0.01%. The fear gauge, India VIX, fell to 13.80 levels.

The broader market indices traded in the green, with the Nifty Midcap 100 index up 1.08% and the Nifty Smallcap 100 index with 0.85% gains. The sectoral indices traded mixed, with Nifty Financial Services down 0.84% being the top loser, while Nifty Media up by 2.10% remained the top gainer.

Top three stocks that hit a fresh 52-week high on Tuesday, September 10, 2024

Avenue Supermarts Ltd (Dmart)

The leading supermarket chain scrip clinched a 52-week high at ₹5,422.45 after surging over 1.14% on Tuesday.

The stock price has surged over 8% in the last 5 days indicating strong upward momentum. It seems market participants are anticipating an improvement in discretionary demand and margins.

In the Q1FY25, DMart reported strong revenue growth of 18.4% YoY, aided by strong store additions. Revenue per store has improved by 4.3% YoY. DMart opened 6 new stores in Q1FY25, 41 new stores in FY24, and 131 stores in the last 3 years, which, along with a likely improvement in demand due to lower inflation, are expected to aid future growth

Though business indicators remain healthy, the company aims to remain relevant to customers by delivering value through operational efficiencies, quality products, and competitive prices. The company has retained its store opening target of 45 stores in FY25 and believes it has steadily progressed on its e-commerce model and has no plans to push into the Q-Com segment.

DMart has strong growth potential given its healthy balance sheet with no debt and strong operational efficiency. Dmart has remained focused on being the lowest-priced retailer in its area of operation, DMart has grown steadily over the years and operates 375 stores in 10 States, 1 Union Territory, and NCR.

Divi’s Laboratories Ltd

The Pharma major’s stock price surged around 3.9% on Tuesday, hitting a fresh 52-week high at ₹5,376.95.

The share price reacted positively to the latest development in the U.S., where the U.S. House of Representatives passed the Biosecure Act, which will prevent drug companies from doing business with certain Chinese biotechs within eight years. The Biosecure Act aims to limit global pharmaceutical companies from outsourcing their work to China, India's Contract Development and Manufacturing Organisation (CDMO) companies are bound to have an advantage.

The Indian CDMO market is anticipated to expand at a CAGR of 14.67%, reaching a value of $44.69 billion in 2029F from $19.63 billion in 2023. Opportunities for contract research and API are anticipated to drive the expansion. Further due to low manufacturing prices and government incentives such as the Production-Linked Incentive (PLI), Indian CDMOs are appealing to businesses looking for alternatives that are cheaper than China.

Divi's Laboratories is a key player in the pharmaceutical industry, specialising in the production of Active Pharmaceutical Ingredients (APIs), Intermediates, and Nutraceutical ingredients. The company's focus on exports, custom synthesis services, and support for innovative pharma companies sets it apart in the global market.

Inox Wind Ltd

The wind energy solution provider’s stock traded to a 52-week high at ₹245 and soared to 4.67% in Tuesday's morning session, the company’s market cap reached ₹31,900 crore mark. The Inox Wind share witnessed a strong surge in the trade volume of 1.23 crore shares with a trade value worth ₹298.72 crore till 10.53 a.m. on NSE.

The stock last witnessed strong buying since last week with shares up over 9%, driven by the unlocking of new revenue streams. Last week the company’s subsidiary, Resco Global Wind Services, an Inox’s EPC project arm, approved ₹350 crore equity raise from marquee investors, with the intention that the funds raised will be utilized to scale up the business offerings and capitalize on the large-scale opportunities in the Indian wind sector.

Resco Global Wind Services is a subsidiary that provides EPC services for wind projects and develops common infrastructure, including power evacuation infrastructure, for renewable projects.