Jubilant Foodworks, Shyam Metalics & Energy and Info Edge (India) clinch fresh 52-week high

On Thursday at 11.27 a.m., over 158 stocks advanced to 52-week highs. The benchmark indices, NIFTY50 traded at 24,825, up 0.22%, SENSEX at 81,092, up 0.23%, and the Nifty Bank at 50,910, up 0.44%, while the fear gauge India VIX fell to 13.04 levels.

The broad market indices relatively outperformed, with Nifty Midcap 100 up 0.72% and Nifty Smallcap 100 up 0.49%. The sectoral indices traded in the green, except Nifty Pharma, and Healthcare traded in red while Nifty’s PSU Bank remained the top gainer.

Top three stocks that hit a fresh 52-week high on Thursday, August 22, 2024

Jubilant Foodworks Ltd - India’s leading food service provider and operator of Domino’s in India’s stock price traded to a 52-week high at ₹663.1 gaining over 2.53% on Thursday’s session. The stock has been trading with positive bias since it announced its quarterly earnings on August 09, the stock price is up over 10% since then.

In Q1FY25 earnings, the company recorded a revenue increase of 44.8% YoY, reaching ₹1,933 crore. The profit after tax stood at ₹58 crore with a 100% YoY jump.

Domino’s India demonstrated 3% like-for-like (LFL) growth, driven by a robust 12.1% LFL growth in delivery. The company’s strategic initiatives contributed to this performance, including a 17.5% YoY increase in monthly active users, a loyalty membership nearing 25 million, and a 32% rise in new customer acquisitions. Domino’s app saw record-high monthly users of 12.1 million customers grew by 17.5% YoY.

The consolidated revenues surged primarily due to the integration of DP Eurasia. DP Eurasia’s revenue grew by 34.5% YoY to ₹461 crore. In international markets, Domino’s Turkey reported 10.3% LFL growth, COFFY achieved 8.7% LFL growth, and Domino’s Bangladesh and Sri Lanka also saw double-digit growth. The company expanded its footprint by adding 66 stores in Q1 across various brands and markets taking the total store count to 3,057 stores.

Shyam Metalics and Energy Ltd - Leading and fastest-growing integrated metal producer’s scrip soared 10.65% on Thursday, peaking at a 52-week high at ₹844.5.

The stock price witnessed this sharp spike as the investors cheered the company's announcement that it finalised the first 20.43MW renewable energy implementation at their manufacturing facilities & office out of an earlier announced 100MW.

The cumulative solar capacity of 20.43 MWp is estimated to produce 35,793.36 MWh of clean energy per year, offsetting 35,077.49 tons of CO2 emissions. In the era of sustainability, investors especially FIIs stress more on investing in companies that complies ESG, therefore such initiatives from manufacturing companies highlight green flags for investments.

The company currently boasts a captive power generation capacity of 377 MW and 9 MW of Renewable power generation capacity and uses it in the production of long steel products, ferro alloys, and aluminium foils across the value chain. Further in Q1FY25, the company shareholding pattern also saw a drop in FIIs holding by 0.10% to 2.25%.

Shyam Metalics, diversification of products/metals, backward integration to capture efficiencies and its successful foray into new businesses such as aluminium and stainless steel products, this transformation to a producer of value-added products from metal producer would lead to better margins, lower susceptibility to commodity price movement, and a better return ratio, says the industry experts.

In the last 12 months, the stock has rallied over 76%, in Q1FY25 the company witnessed a growth in revenue by 8.36% YoY, and the profit surged significantly by 35.31% YoY.

Info Edge (India) Ltd - The operator of online portals like Naukri.com’s stock climbed to a 52-week high at ₹7,570.05, surging over 2.19% in the Thursday morning session. The stock witnessed a trading volume of over 1.04 lakh shares with a trade value of ₹78.20 crore on NSE till 11.00 a.m. on Thursday, taking the m-cap close to ₹98 thousand crore mark.

The stock is trading with a positive trend after its stellar earnings in Q1, reporting a 47% YoY jump in its June quarter net profit at ₹233 crore. Revenue recorded an 8% YoY growth to ₹677 crore.

According to the management, the company is sitting on ₹4,500 crore of cash or close to that number and the Naukri business generates about ₹1,200 crore every year. Other businesses are close to breaking even. As of June 30, 2024, the company's cash balance stood at ₹4,255 crore.

Further, the company plans to continue to invest in strategic business initiatives like AmbitionBox, JobHai, etc., which are aimed at driving long-term value creation in the recruitment business. Along with investing in growing platforms and improving the quality, quantity and richness of the content on the platform.

The company is more focused on investing in the app and wherever possible, trying to use generative AI and data science and machine learning to improve the experience, says the management.