ICICI Bank, NCC Ltd and GRSE clinches 52-week high on Tuesday

On Tuesday, select banking stocks like HDFC Bank, ICICI Bank and Axis Bank lifted the banking sector with Bank Nifty breaking records. The high valuation remains a concern which would be closely observed by FIIs and DIIs in the coming period.

At 1.30 pm on Tuesday, the Nifty50 traded at an all-time high of 23,682 points up 0.62%, Bank Nifty is at 52,552 points up 1.64% and Nifty Financial Services along with Nifty Smallcap was trading in green, up 1.71% and 0.29%, respectively. On Tuesday over 165 stocks advanced towards a 52-week high.

Three stocks that hit a 52-week high on June 25, 2024

In the past year, all counters of the market have seen massive rallies except large banking stocks despite record profits in FY24. This was mainly due to the concerns of slow growth and high interest rates. However, with the economy growing faster across sectors and inflation cooling down leading to a fall in interest rates, financial services have remained the natural selection for investors.

At the domestic level, the RBI is expected to cut rates in the second half of FY24. The upcoming budget and predictions of an above-average monsoon are anticipated to help recover rural demand, fueling growth. In FY24, ICICI Bank's consolidated net profit and revenue grew by 30% and 31.75% year-over-year, respectively. As of March 2024, the bank holds a 7.67% market share in advances, a 7.05% share in deposits, an 18.76% share in credit transactions, and a 5.50% share in debit card transactions.

In today’s exchange filing, the company informed that it has allotted 71,628 equity shares of the face value of ₹2 each on June 25, 2024, under the Employee Stock Unit Scheme - 2022. In the last 12 months, the stock has given a return of 28%.

NCC Ltd builds industrial and commercial buildings, roads, bridges and flyovers. The infrastructure company also takes up housing, power transmission, irrigation and hydrothermal power projects. In FY24 the consolidated net profit and revenue have grown at 14.55% and 34%, respectively on a YoY basis. The company has also managed to reduce debt, gross debt at the end of Q4FY24 stood at ₹1,000 crore, down ₹470 crore QoQ basis. With the budget coming up, the infra spending of the government is expected to continue further boosting the growth of the company

Last week India Rating & Research upgraded the rating of the company for long-term fund-based and non-fund-based working capital limits. The stock has zoomed over 180% in the last 12 months.

The company said in a filing, it has signed signed an agreement with M/s Carsten Rehder Schiffsmakler and Reederei GmbH & Co., KG Germany on Saturday, June 22, 2024, for the construction and delivery of four (04) multi-purpose vessels of 7,500 DWT each, with an option of building another four (04) ships in near future. The approximate size of the contract would be $54 million i.e. ₹451 crore.

The aero-defence company has been a pioneer in the export of warships. In 2014, the CGS Barracuda, an Offshore Patrol Vessel, built by Garden Reach Shipbuilders & Engineers, was exported to Mauritius. This was the first warship to be exported by India.

The company is almost debt-free and has reported strong growth in FY24 with consolidated net profit and revenue up 56% and 40% on a YoY basis. The company’s current order book stands at ₹22,652 crore.

The stock price has gained 32% in just one month and 218% in the last 12 months.