KPIT Technologies, Wipro and RailTel hit 52-week high, here’s why

Sectorally, Nifty IT outperformed with 4.29% gains along with Nifty Media up 2.5%. The broader market indices underperformed with Nifty Midcap 100 trading muted up 0.03% and Nifty Smallcap 100 up 0.35%

Top three stocks that hit fresh 52-week on Friday, July 12, 2024

KPIT Technologies Ltd - The Pune-based IT company’s stock price of Friday’s trading session surged around 9.8% clinching a 52-week high at ₹1,877.

The stock gained positive momentum with IT stock expected to deliver better than estimated results in Q1FY25. KPIT's position as the largest India-based automotive Engineering Research & Development (ER&D) service provider, noting its significant client base and robust intellectual property (IP) portfolio.

Management's confidence in gaining medium-term demand momentum remains high, supported by Q4FY24 deal wins Total Contract Value (TCV) of the company totalled $447 million in deal wins, along with anticipated margin improvement. The company also entered into a JV in April this year with ZF Friedrichshafen AG to invest in KPIT's subsidiary, Qorix GmbH, an independent company focused on the creation of a world-class automotive middleware stack.

The company posted consolidated revenue of ₹4,872 crore (45% YoY growth) and net profit of ₹599 crore (55% YoY growth). The FIIs shareholding as of March 31, 2024, remained at 23.98% and promoter’s at 39.47%. In the last 12 months, the stock has given a return of 70% with current market capitalisation at ₹49,729.69 crore

KPIT Technologies is a global software development and integration partner specializing in automotive and mobility solutions. With expertise in embedded software, AI, and digital innovation, the company helps clients implement next-generation technologies for a cleaner, smarter, and safer future.

Wipro Ltd

Another IT company and India’s leading IT service provider’s scrip on Friday traded to a fresh 52-week high after stock price soared up 5.60% at ₹564.

The stock witnessed positive bias due to the broader rally in the IT sector guided by TCS’s better-than-expected results which led to the surge in the stock price of IT stocks including Wipro. The TCS’ results surprised in terms of numbers as well as with a positive management commentary. Wipro is set to announce its quarterly results for the June period on July 19, 2024.

In the last 12 months, the stock has delivered over 43%, however in just the last one-month period it has gained 17% with its current market capitalization around ₹2,93,870.75 crore.

RailTel Corporation of India Ltd

The stock of Rail-Telcommunction infra company scaled to a 52-week high on Friday surging 18% at ₹615. The stock witnessed traded volume of 515.72 lakh shares with a trade value of ₹2,950.93 crore on NSE till 1.00 pm on Friday.

The stock has gained over 340% in the last 12 months and over 43% in the last one month. The railway sector stocks are buzzing with a full-fledged budget for FY25 to be tabled in parliament on July 23. The budget is anticipated to continue funding infrastructure development in the railways sector including expansion and upgradation of existing facilities.

The company has informed to exchange that the Board of Directors of the Company at its meeting held on July 8, 2024, has recommended a Final Dividend at the rate of 18.5% of paid-up share capital (₹1.85/-per share) for the FY24. This Final Dividend is in addition to the Interim Dividend of ₹1/- per share already paid by the company for FY 24. In FY 24 the company has reported consolidated revenue and net profit growth of 31% for both.

"Mini Ratna (Category-I) is a PSU with a continuous profit for three years, wherein, the profit earned in one of these years must be of ₹30 crore. They enjoy financial autonomy for investment decisions up to ₹500 crore or an amount equivalent to their net worth, whichever is lower.