Genus Power, Godfrey Phillips India and Bajaj Finserv clinch fresh 52-week high; here’s why

On Thursday, over 67 stocks advanced to 52-week highs. The benchmark indices traded flat with, NIFTY50 traded at 25,045, marginally down 0.03%, SENSEX at 81,766, marginally down 0.02%, and the Nifty Bank at 51,153, marginally up 0.02%, while the fear gauge India VIX fell to 13.94 levels.

The broad market indices traded in red, with Nifty Midcap 100 down 0.61% and Nifty Smallcap 100 slipped by 0.62%. The sectoral indices also traded mixed, with Nifty’s IT being the top gainer up 0.62% and on the other hand, Metal remained the top loser down 0.87%.

Top three stocks that hit a fresh 52-week high on Thursday, August 29, 2024

Genus Power Infrastructure Ltd - Kailash Group-backed company offering metering solutions and turnkey power projects traded to a 52-week high at ₹465.8, eventually locking up at upper circuit with a 4.99% surge in Thursday’s session.

The stock reacted to the positive development in which the company's wholly-owned subsidiary bagged orders worth ₹4,469.04 crore.

In a press release, the company informed that its wholly owned subsidiary received three Letter of Awards (LOA) worth totalling ₹4,469.04 crore (net of taxes). It is for the appointment of Advanced Metering Infrastructure Service Providers (AMISPs) including the design of Advance Metering Infrastructure (AMI) system with supply, installation and commissioning with FMS of about 5.59 million Smart Prepaid Meters, system meters including DT Meters with corresponding energy accounting on DBFOOT (design, build, finance, own, operate and transfer) basis.

Over the past few weeks, Genus Power and its subsidiary have won three major orders, cumulatively valued at ₹11,003.08 crore. This includes orders worth ₹2,925.52 crore and ₹3,608.52 crore won in the third week of August and an additional ₹4,469.04 crore secured now. These orders brought the total order book to about ₹32,500 crore, with project duration varying up to 8 to 10 years, providing clear visibility into the company's robust future growth.

The investors seem to appreciate this fact and the share price has rallied over 25% in the last one month.

Genus Power Infrastructures is the largest player in India’s electricity metering solutions industry, with a 27% market share. The company is a market leader in various kinds of meters and has developed ‘smart metering solutions’, with an in-house R&D centre. The company also has an engineering, construction, and contracts (ECC) division which complements the existing meters business.

Godfrey Phillips India Ltd - The popular Cigarette and Tobacco manufacturer’s scrip soared 9.5% on Thursday, peaking at a 52-week high at ₹6,350.

The stock price witnessed this sharp spike as the investors reacted to the recent statement of the company’s Executive Director Samir Modi. He clarified that he was willing to do “whatever it takes” to end the family dispute, including selling the business altogether, as was initially proposed by Lalit Modi, his brother.

In a media interview, Samir Modi responded to a question on whether he agreed to the proposal by Lalit Modi to sell the business and distribute the proceeds among the family members.

Samir Modi said, “I'm in agreement that the fight needs to end. One way or another, the fight is not good for anybody, not good for the shareholders, not good for the employees. I agree. Whatever it takes to end the fight. Family fights have no place in the boardroom.”

However, it is also reiterated that his mother, Bina Modi the current MD of the company has no place on the board of the company.

The death of KK Modi in 2019 prompted a succession battle where Bina Modi has been locked in a dispute with her sons, Samir Modi and Lalit Modi. Lalit had opposed Bina Modi’s elevation as MD of Godfrey Phillips and proposed selling off the business and distributing sale proceeds within the family which was opposed by Bina Modi.

The company has scheduled its AGM on September 6, 2024, in which shareholders will decide on two key proposals. One is whether to reappoint Bina Modi as MD, and two is whether to exclude Samir Modi from the board.

Bajaj Finserv Ltd - The Bajaj Group-backed financial service providers’s stock climbed to a 52-week high at ₹1,748, surging over 2% in the Thursday morning session.

The stock is trading with a positive trend in the last few sessions with share price up 7.4% in the last 5 days. On NSE till 9.52 a.m. on Thursday, the share trade volume jumped to 6.77 lakh shares with a trade value worth ₹117.42 crore. The share witnessed buying interest ahead of the upcoming ₹7,000 crore IPO of its arm Bajaj Housing Finance.

The IPO will have a special quota for shareholders of Bajaj Finserv and Bajaj Finance, both of whom are classified as ‘promoters’. Bajaj Finance has a 100% stake in Bajaj Housing, while Bajaj Finserv holds 51.34% in Bajaj Finance. Bajaj Housing’s IPO will comprise ₹3,000 crore share sale by Bajaj Finance and fresh fundraising of ₹4,000 crore. The IPO is expected to hit the market during the first half of September.

In 2024, the Bajaj Finserv shares have underperformed with 4.5% gains on a year-to-date (YTD) basis. The high cost of borrowing has remained a major concern for private financiers.

Bajaj Finserv is primarily engaged in the business of promoting financial services such as finance, insurance, broking, and investments including distribution using digital platforms through its investments in subsidiaries and joint ventures.