Cochin Shipyard, Swan Energy, and PC Jeweller hit the upper circuit while One Point One Solution trends in the lower circuit

Domestic equity bourses started the new week on a flat note. However, around 11.00 a.m., 117 stocks hit the upper circuit, and 74 stocks hit the lower circuit. Nifty50 traded at 24,296, down 0.11%, and the fear gauge India Vix rose to 13.58.

Majority of Nifty50's sectoral indices traded in the red on Monday except for Nity FMCG, which is up 1.51%. Auto, Oil & Gas and Healthcare index gained marginally.

Stocks locked in upper and lower circuits in today's trading session. 

Stocks hitting the upper circuit on Monday, July 8, 2024. 

The stock has been buzzing with a surge of 30% in the last five trading sessions. As per the latest shareholding pattern, the Government of India owns 72.86% as of  March 31, 2024. The shareholding pattern has increased small retail shareholders from 1.6 lakh on March 31, 2023, to 3.83 lakh shareholders on March 31, 2024, with a drop in institutional holding from 8.59% to 7.36% for the same period. 

Shipbuilders' stocks have been skyrocketing with strong order inflows. As of May 2024, Cochin Shipyard's order book is worth ₹22,000 crore. In FY24, the company reported 31% growth in topline on a YoY basis. Also, at operating levels, the company has performed extremely well, with a margin growing to 24% in FY24 against 12% in FY23.

Cochin Shipyard is engaged in shipbuilding and ship repair. It operates through the following segments: Shipbuilding, Ship Repair, and Others. The company was founded in 1969 and is headquartered in Kochi, India. The stock has surged over 360% in the last six months, giving stellar returns to investors.

Swan Energy's financial performance has seen a turnaround, with consolidated sales growth of 250% on a YoY basis in FY24. The company's net profit stood at ₹586 crore in FY24 against a loss of ₹61 crore in the previous year.

The company is working to reduce its debt level. Last month, it prepaid ₹300 crore of debt through its subsidiary Triumph Offshore Pvt Ltd. In the same month, it acquired a 49% equity share of Triumph for ₹440 crore. In FY24, the company's consolidated borrowings fell to ₹3,440 crore (31% on YoY).

Buying interest in the stock built up as the company announced in an exchange filing that the 'One Time Settlement' proposal by PNB bank in respect of outstanding dues had been approved.

In an exchange filing, the company informed that the Punjab National Bank has approved the One-Time Settlement proposal submitted by the company. The company had opted for OTS to settle the outstanding dues. The terms and conditions of approved OTS include cash and equity components payable under the settlement, the release of securities and mortgaged properties, etc., the company further added.  

However, the company's financials deteriorated with a drop in sales and widening net losses. In FY24, the company reported consolidated sales of only ₹605 crore against ₹2,472 crore in FY23, and net loss stood at ₹629 crore. Still, in the last 12 months, the stock has rallied 72%.

Stock hitting the lower circuit on Monday, July 8, 2024. 

On Friday, the company announced an increase in authorised share capital and issuance of equity shares and warrants. In an exchange filing, the company said the Board has approved an increase in the company's authorised share capital from ₹50 crore to ₹70 crore. The Board also approved the issuance and allotment of 3,75,94,502 equity shares and 1,67,85,714 equity warrants of the face value of ₹2/- each, which will be issued at ₹56 per equity and warrant share, significantly lower than Friday's closing of ₹75.80.

One Point One Solutions Limited is a full-stack player in BPO, KPO, IT Services, Technology and transformation, and Analytics. The company was incorporated in 2006 and offers comprehensive solutions in technology, accounting, skill development, and analysis.