HUDCO, Cochin Shipyard and Wipro hit fresh 52-week high

At around 11.15 a.m. over 189 stocks advanced to a new 52-week high, NIFTY50 traded at 24,338.70 level, up 0.21% and SENSEX at 80,173 level up 0.23%. Nifty Bank was trading at 52,884 level, down 0.39%. Broad market indices traded in green with the Nifty Midcap 100 and Smallcap 100 index increasing by 0.42% and 0.34%, respectively.

Three stocks that scaled to a 52-week high on Thursday, July 4th, 2024

Housing & Urban Development Corporation Ltd (HUDCO) - On Thursday morning’s early trade, this PSU stock clinched a fresh 52-week high of ₹320.70 after surging 6.20%. Till 10.00 a.m. on the NSE, the stock saw 314.99 lakh traded volume.

The Navratna PSU has given stellar returns with a 40% return in the last one month and a 458% return in the last 12 months. The positive momentum in the stock prices would be attributable to a fundamentally strong housing sector and strategic benefit to housing financiers.

Yesterday, the stock saw a block deal worth 81.98 lakh shares or 0.4% of the company’s total equity changed hands. The transaction was valued at ₹242 crore at an average share price of ₹299.

In another development, the housing finance PSU has applied to the Ministry of Finance to seek exemption under section 54EC of the Income Tax Act similar to its peer PSU financiers. This will lead to lower borrowing costs for the company.

Section 54EC of the Income Tax Act provides a tax-saving opportunity for individuals selling long-term immovable property. Individuals can enjoy tax exemptions by investing capital gains of long-term immovable property in specified capital gains bonds like those issued by REC, NHAI, PFC, or IRFC. HUDCO has applied to get covered under the same.

Cochin Shipyard Ltd - One more PSU stock, Cochin Shipyard soared 8.35% to a fresh 52-week high on Thursday at ₹2,639.90.

The shipbuilding PSU has been buzzing on the bourses, with inflows of new contracts, and order books have surged to an all-time high. With the government's ambitious export targets and expected continued budgetary support in the upcoming budget, the sector has a positive bias. In the last one month, the stock has rallied 45% and in the last 12 months, it has delivered 840% bumper returns.

In a recent development, the company's subsidiary Udupi CSL secured an international order for the construction of 8 vessels worth ₹1,100 crore.

In the exchange filing of July 3, 2024, the company informed that the Government of India has extended the tenure of Jose V J as its Director (Finance) till the date of his superannuation i.e. 28 February 2027 or until further orders, whichever is earlier.

Till May 31, 2024, the company had an order book value worth ₹22,000 crore. In FY24 the company reported consolidated revenue and net profit of ₹3,645 crore and ₹813 crore respectively.

Wipro Ltd - The IT major scrip on Thursday scaled a 52-week high of ₹548.80 after soaring 1.80%. The stock is seeing positive momentum ahead of its Q1FY25 results

In the last month, Wipro announced a $500 million deal which would take place over 5 years. Wipro had said that a leading US communication services provider has awarded a contract to the company for managed services for some products and industry-specific solutions.

The deal has surprised the market with IT stock surging 23% in the last one month. The deal is expected to have a positive impact amid a tight environment in IT discretionary spending across the sector.

In FY24, Wipro reported consolidated revenue and net profit of ₹89,760 crore and ₹14,721 crore respectively with FY24 order book standing at $14.9 billion.

In an exchange filing, the company informed that it allotted 2,48,673 equity shares under the stock unit plan. In the previous 12 months, the stock has surged 36%.