Infosys, Tata Teleservices and Kalpataru Projects International hit fresh 52-week high; here’s why

The broad market indices remained in red with Nifty Midcap 100 plunging by 2.12% and Nifty Smallcap 100 lost 2.16%. Majority of the sectoral indices also traded in red except Nifty IT and and FMCG, which are in green, up 0.41% and 0.26%, respectively.

Top three stocks that hit a fresh 52-week high on Friday, July 16, 2024

Infosys Ltd- The India’s second largest IT company’ scrip clinched a 52-week high at ₹1,844 after surging around 5% on Friday’s trade.

The IT major’s stock price witnessed a sharp spike as the company announced its Q1FY25 result post market hours. The earning beat the street estimates with net profit growing 7.1% YoY to ₹6,368 crore. The revenue increased by 3.6% YoY to ₹39,315 crore, the margins improved to 21.1% in Q1FY25.

The company’s large deal wins were highest-ever at 34 with TCV (Total Contract Value) of $4.1 billion, with 57.6% being net new. The CEO of company Salil Parekh said in a press release that “We had an excellent start to FY25 with strong and broad-based growth, operating margin expansion, robust large deals, and highest ever cash generation”.

The positive surprise in the result was the upward revision in revenue growth guidance. Company anticipates constant currency revenue growth of 3-4% for FY25. In Q4FY24, Infosys had slashed its revenue guidance to 1-3% for FY25, due uncertain demand conditions.

However, the company reported a 4.6% fall in attrition rate in Q1FY25 compared to the corresponding period last year. The company’s stock price has surged over 20% in the last one month against 23% in the last 12 months.

The stock has been trading with positive bias for the past few days with stock price surging over 16% in the last one month . Market experts remains positive on the stock due to factors such as the company's strong order book, robust financial profile, expanded international footprint, robust demand in the domestic T&D segment, diversified expertise in EPC sectors, extensive global reach, strategic divestment of non-core assets to enhance RoCE, and capability to manage large-scale projects.

Last week the company had bagged ₹2,995 crore new order highlighting strong business.In FY24, the company reported an increase in topline by 20% and in bottom line by 19% on a YoY basis. However the company’s order for FY24 stood at ₹58,415 crore.

Tata Teleservices (Maharashtra) Ltd - The Tata Group’s connectivity and communication solutions provider’s stock traded to a 52-week high at ₹111.4, soaring over 14.5% on Friday's morning session. The stock on NSE at around 11.00 a.m. on Friday witnessed over 18.61 crore trade value with turnover of ₹1,963 crore, while the market cap stood at ₹20,477.87 crore.

The stock has been in positive momentum as the stock has surged over 41% in the last 5 days against the 30% return in the last 12 months . The recent tariff hikes by telecom operators, ranging from 10% to 25%, and growing data consumption which will boost the average revenue per user (ARPU) for telecom companies are positive factors for the company.

In FY24 the company’s revenue grew by 8% to ₹1,192 crore while the net profit further widened to ₹1,228 against ₹1,145 crore in previous year. The debt ridden company continued to struggle with interest cost increasing to ₹1,622 crore up 8%.

The company is engaged in the business of wired and wireless telecommunication activities and holds a Unified License with Access Service Authorisation in Maharashtra and Goa and also as in Internet Service Provider category.

Company has informed the exchange about a board meeting to be held on July 24 to consider and approve the quarterly unaudited financial results of Q1FY25.