Hindustan Unilever, Gujarat Fluorochemicals and Glenmark Life Sciences clinch fresh 52-week high; here’s why

On Monday, over 78 stocks advanced to 52-week highs. The benchmark indices, NIFTY50, closed 24,936 level up 0.34%, and SENSEX at 81,559 level, up 0.46%. The Nifty Bank is at the 51,117 mark, up 1.0%, while the fear gauge India VIX fell to 14.57 level.

The broad market indices traded in negative terrain, with Nifty Midcap 100 down 0.39% and Nifty Smallcap 100 down 1.16%. The major sectoral indices traded mixed with Nifty’s FMCG, being the top gainer, while Nifty’s Oil & Gas was the top loser.

Top three stocks that hit a fresh 52-week high on Monday, September 9, 2024

Hindustan Unilever Ltd (HUL)

The FMCG major stock price traded to a 52-week high at ₹2,876 after surging over 1.31% in Monday’s session, surpassing the company's market cap mark of ₹6.75 lakh crore.

The share price witnessed an uptick as the company informed last Friday that it has constituted an Independent committee to evaluate the way forward for its ice cream business. This move comes in response to Unilever PLC's March 2024 announcement of its intention to separate its global ice cream operations across different jurisdictions

In an exchange filing, the company stated, “The Board of Directors of HUL, at its meeting, discussed the way forward for its Ice cream business. This follows the announcement, earlier this year, by the Company’s parent entity, Unilever PLC, about its intention to separate its global Ice Cream business across jurisdictions. After due consideration, the Board has decided to constitute a committee of Independent Directors of the Company to evaluate in detail the prospects of the Company’s Ice Cream business and to make recommendations to the Board on the best way forward, keeping in mind the interest of all our stakeholders board”. Shares of HUL surged 20% in the last 6 months. It has outperformed the benchmark Nifty50 (11%) and Nifty’s FMCG index (16%) returns in the same period.

Gujarat Fluorochemicals Ltd

The leading producer of fluoropolymers scrip traded 3.15% higher on Monday, peaking at a 52-week high at ₹3,928.75. The stock witnessed a strong buying interest as trade volume surged to 5.84 lakh shares with a trade value worth ₹225.71 crore.

The recent spurt in the volume has led to a 21% jump in share price in the last 2 sessions. This buying interest in the stock is in anticipation of potential benefits to the company from commercialising the battery chemicals segment and the growing traction of new fluoropolymers, driven by strong growth in the semiconductor industry and advancements in emission control applications. In Q1FY25 company’s earnings missed the street's estimates. The Fluoropolymers vertical showcased YoY growth with the Bulk Chemicals segment up marginally. However, the Fluorochemicals segment lagged due to headwinds from Chinese competition. However, the management is confident about the coming quarters and expects a better performance in H2FY25.

According to the management the supportive government initiatives, including the ‘National Chemical and Petrochemical Policy’ and fluoropolymers as essential performance raw material in growing sectors such as electronics, renewable energy equipment, electric vehicles (EVs), energy storage system (ESS), fuel cell membranes and green hydrogen. This synergy of government support and industrial demand sets the stage for accelerated growth of the Indian fluoropolymer market in the coming years.

The company has fixed Friday, September 20, 2024, as the record date to determine the shareholders eligible to receive the final dividend of ₹3 per equity share for FY24.

Glenmark Life Sciences Ltd

The stock of leading active pharmaceutical ingredient maker Glenmark Life Sciences surged to a 52-week high of ₹1,200.85, rising 4.38% during Monday's morning session. The stock has gained upward momentum, climbing over 12% in the past week. Strong buying interest has been driven by expectations of sustained growth, supported by a recovery in Q1 and the company’s strengthened debt-free balance sheet. The Generic API business posted a robust 10.5% quarter-on-quarter (QoQ) and 6.2% year-on-year (YoY) growth in Q1.

In its Q1 FY25 earnings report, Glenmark Life Sciences announced a 1.90% YoY rise in consolidated revenue to ₹589 crore, although net profit fell by 17.78% YoY to ₹111 crore. According to the company’s June 2024 shareholding pattern, promoters hold 82.85% of shares, with Nirma Ltd owning a 75% stake and Glenmark Pharma holding 7.85%. Foreign institutional investors (FIIs) hold 4.81%, domestic institutional investors (DIIs) hold 1.57%, and the public holds 10.76%. Year-to-date (YTD) in 2024, the stock has rallied over 81.65%, with a 30% gain in just the last month.

Glenmark Life Sciences is a key player in the development and manufacturing of specialized active pharmaceutical ingredients (APIs) for chronic therapeutic areas, including cardiovascular and central nervous system diseases, pain management, diabetes, gastrointestinal disorders, and anti-infectives.