Heidelberg Cement India, Coforge, and RPG Life Sciences clinch fresh 52-week high; here’s why

On Monday, more than 50 stocks surged to 52-week highs, however, benchmark indices traded in negative territory. The NIFTY50 was down 0.35% below the 25,000 level, the SENSEX fell 0.20% to the 81,520 level, and the Nifty Bank plunged 0.35% to 51,280. Meanwhile, the India VIX, the market's fear gauge, rose 5.94%, trading around 14.97.

Broader market indices traded in negative territory, with the Nifty Midcap 100 declining 2.26% and the Nifty Smallcap 100 dropping 2.82%. Sectoral indices traded in the red, where Nifty Media tumbled by 3%, being the top loser.

Top three stocks that hit a fresh 52-week high on Monday, October 7, 2024

HeidelbergCement India Ltd

On Monday, the stock surged 17.93% from the previous close, peaking at a 52-week high of ₹258. As of 2:00 p.m., the stock is trading at ₹231.16 (+5.7%).

The surge in buying interest came after reports that the Adani Group is in discussions to acquire HeidelbergCement India and Zuari Cement (another company of the Heidelberg Group). According to reports, the acquisition could be valued at ₹10,000 crore.

Other cement players like Ultratech Cement and JSW Cement are also in the race for the acquisition. In July, JSW Cement acquired Orient Cement, and in the same month, Ultratech Cement approved the acquisition of India Cements.

Regarding the financials, sales in Q1FY25 stood at ₹532 crore, down from ₹596 crore a year ago, marking a decline of 10.7%. Profit after tax stood at ₹40 crore compared to ₹52 crore a year ago, showing a 23% YoY decline.

In the past month, HeidelbergCement India has outperformed the market, delivering a return of 2.13%. The current market capitalisation of the company stood at ₹5,382 crore.

Coforge Ltd

On Monday, the stock surged 2.24% from its previous close, reaching a 52-week high of ₹7,285. As of 11:57 a.m., the stock is trading at ₹7,185.10 (+0.83%).

On Friday, October 4, the company announced a dividend of ₹19 per share. The record date is set for October 11, meaning shares held by investors by this date would be eligible for the dividend, which will be paid on November 3.

Last year, the payout ratio stood at 58% of total profits, with an EPS of ₹130.70. The dividend for FY24 amounted to ₹76. Coforge’s trailing dividend yield comes in at 1.05%, based on the current stock price of ₹7,200.

In terms of financials, sales in Q1FY25 stood at ₹2,401 crore, up from ₹2,221 crore a year ago, marking a growth of 8.10%. Profit after tax in Q1FY25 stood at ₹139 crore, compared to ₹176 crore a year ago, showing a 21% YoY decline.

In the past month, Coforge has outperformed the market, delivering a return of 9.54%. The company's current market capitalisation stands at ₹47,953 crore.

RPG Life Sciences Ltd

The company is engaged in the manufacturing and marketing of Formulations and APIs (Active Pharmaceutical Ingredients) for both domestic and international markets. It operates two formulation units, one in Ankleshwar, Gujarat, and the other in Navi Mumbai, Maharashtra.

On Monday, the stock surged 13.06% from the previous close, reaching a 52-week high of ₹2,950. As of 12:11 p.m., the stock is trading at ₹2,770 (+6.16%).

The company has strong financials and operates in the pharmaceuticals and formulation industry, where the median ROE is around 11.5%. The company boasts an ROE of 25.46%, meaning that for every ₹1 of equity, the company generated approximately ₹0.25 in profit.

In terms of financials, sales grew at a rate of 9.13%, while profit after tax grew at a 24.8% CAGR over the past 5 years. This indicates that the company benefits from operating leverage, as profits are growing faster than sales. Over the past year, the company’s earnings grew by 29.4%, compared to the industry average of 19.2%.

The company retains an average of 70% of its profits, and with its high ROE, it is efficiently reinvesting these profits. Meanwhile, 30% of the profits are shared with shareholders.

In the past month, RPG Life Sciences has outperformed the market, delivering a return of 21.12%. The company's current market capitalisation stands at ₹4,654 crore.