ITC, Kalyan Jewellers and Avanti Feeds sky-rocketed to a fresh 52-week high; here’s why

The broad market indices remained in green with Nifty Midcap 100 up 0.95% and Nifty Smallcap 100 soaring 1.55%. Majority of the sectoral indices traded in green except BFSI, FMCG and Auto indices.

Three stocks that hit a fresh 52-week high on Wednesday, July 24, 2024

ITC Ltd- The FMCG major and India’s leading tobacco and related product manfacturer’s scrip clinched a fresh 52-week high at ₹510.65 after surging 3.75% on Wednesday’s early trade.

The Union budget cheered the stock price of Tobacco & Cigarette manufacturer, as the taxes and duties on Tobacco & Cigarette related products remained unchanged. Further the higher budgetary allocation to support rural demand recovery and increase in disposable income due to lower tax under new tax regime are expected to benefit ITC’s FMCG segment. The stock has been trading with positive bias since last one month with gains of around 19%.

The tax rates on Tobacco & cigarettes have remained unchanged following a 16% hike in National Calamity Contingent Duty (NCCD) last year's budget, providing relief to ITC, which rely heavily on cigarettes for income.

The Q4FY24 Cigarette segment revenue accounted for 45% of total companies revenue. The company in Q4FY24 reported total revenue of ₹17,572 crore of which ₹7,925 crore came from the cigarette segment.

Kalyan Jewellers India Ltd - The leading jewellery retailer’s stock price on Wednesday’s morning session jumped to fresh 52-week high at ₹633.6, up over 14.63%.

Here as well, the Union budget remained a trigger for a sharp spike in the stock price, Budget 2024 proposed to slash custom duty on gold and silver from 15% to 6% earlier. Also the custom duty on platinum was cut down to 6.4% from 15.4% earlier.

Prior to the budget proposal jewellery, including the GST of 3% and custom duty of 15% was taxed at 18%. This has been cut to (6%+3%) 9% now, which could boost jewellery demand. India is the second largest consumer of gold after China. According to the World Gold Council (WGC), Indians bought 576 tonnes of jewellery and 185 tonnes in the form of bars and coins in calendar year 2023.Therefore market experts believe the customs duty cuts on gold and silver may lead to a decline in domestic prices and could lift demand for gold.

In FY24, the company reported a growth in topline 32% due to increase in gold prices , however the bottom line too grew by 38% on a YoY basis.

August 09, 2024, is the ex-dividend date for the company's final dividend of ₹1.20.

Ex-dividend date or "ex-date" is usually one business day before the record date. Investors who purchase a stock on its ex-dividend date or after will not receive the next dividend payment.

Avanti Feeds Ltd - The prominent shrimp processor and exporters ’s stock price witnessed a sharp spike of 12.34% on Wednesday's morning session with stock price making a fresh 52-week high at ₹725. The stock on Wednesday witnessed trade volume of over 1.734 crore shares with trade value at ₹752.57 crore, taking the current market capitalisation to ₹9775.62 crore on NSE till 10.50 a.m.

The Union budget fuelled a sharp rally in the stock, with the Finance Minister announcing the central government financial support for setting up a network of nucleus breeding centers for shrimp growth and encouraging financing and marketing for shrimp farming via National Bank for Agriculture and Rural Development (NABARD).

As per Q4FY24 earning’s the company's shrimp exports during FY24 was about 13,443 MTs as compared to 12,497 MTs in FY23 and increased by 946 metric tons. It is estimated that the exports during FY5 would be around 16,000 metric tons. The company market share in March 2023 stood at over 50% in Shrimp feeds.

July 30, 2024, is the ex-dividend date for the company's dividend of ₹6.75.