Maruti Suzuki, IGL and CAMS scaled to a new 52-week high, here’s why

On Wednesday at around 11.00 a.m., over 113 stocks advanced towards a 52-week high. Nifty50 traded at 24,226, down 0.85%, Sensex at 79,631, down 0.90%, and the fear gauge India Vix at 14.59, up 2%. Overall, the broader market traded in red, with the Nifty Midcap 100 and Nifty Smallcap 100 down by 1.16% and 1.41%, respectively. Nifty's sectoral indices also remained in red, with Nifty Auto suffering most, falling by 2%.   

Top three stocks clinched 52-week high on Wednesday, July 10, 2024.

Maruti Suzuki India Ltd - India's biggest carmaker by market share, the scrip hit a fresh 52-week high on Wednesday's early trade at ₹13,285, soaring by 3.56%.

The stock gained momentum following the Uttar Pradesh (UP) government's announcement of a complete waiver of registration tax on strong hybrid electric cars (HEVs) and plug-in hybrid electric vehicles (PHEVs) with immediate effect.

The decision will benefit Maruti Suzuki's Grand Vitara SUV and Invicto MPV, which have strong hybrid technology. Buyers in UP could save over ₹2 lakh and ₹3 lakh on both cars, respectively. 

As per FADA, UP is one of the largest markets for passenger vehicles in India, with retail sales of 2.3 lakh units in H1FY25, which is up 13% on a YoY basis. In India, Maruti is the only listed player in the hybrid car market, while its listed peers like Tata Motors and Mahindra & Mahindra are pushing for full EV (Electric Vehicle) adoption. The chairman RC Bhargava of Maruti Suzuki said, "the impact of registration fee waiver will be visible in next 2-3 years".

August 2, 2024, is the ex-dividend date for the company's final dividend of ₹125 per share. The ex-dividend date is when a stock begins trading without the value of the next dividend payment attached. It's usually one business day before the record date, when a company determines which shareholders are eligible for the dividend.

Indraprastha Gas Ltd (IGL) - On Wednesday, the gas distributor's stock price climbed to a fresh 52-week high after surging 3.46% to ₹540.45.

IGL has a positive bias after the company announced a hike in CNG prices by ₹1 per kg. The stock has gained over 12% in the last month over this anticipation. 

The company cited higher input costs as the reason for a price hike. The PSU gas major had earlier raised CNG prices by ₹1 per kg in mid-December 2023 but cut prices by ₹2.5 per kg before general elections in March this year. Morgan Stanley issued an overweight rating on IGL after its recent price hike.

Following IGL price hikes its PSU Gas peers like Gujrat Gas and Mahanagar Gas also hiked their prices. In FY24 IGL reported growth in consolidated net profit of 21% on a YoY basis. However, its consolidated revenue remained muted with a drop of 1% YoY. In the last 6 months, the stock has soared almost 25%.

Computer Age Management Services (CAMS) - The share price of the technology-driven service provider clinched a 52-week high at ₹4327.75, jumping 8.5% on Wednesday.

The stock witnessed a sharp spike as Q1FY25 data showed an increase in FII holdings. The FII holdings in Q1FY25 increased by 2.73% on a sequential basis to 56.51%.

As of March 31, 2024, the FIIs' holding stood at 53.78%. However, the shareholding pattern witnessed a marginal drop in DIIs' holding by 0.49% to 19.42% as of June 30, 2024. In FY24, the company reported growth in consolidated revenue and net profit by 17% and 23% on a YoY basis. The stock price has rallied 86% in the last 12 months.

Computer Age Management Services Limited is a technology-driven financial infrastructure and services provider for mutual funds and financial institutions. Its comprehensive portfolio includes services such as transaction execution, dividend processing, record keeping, and compliance services.