NFL, Alembic Pharmaceuticals and Godrej Consumer scales to a fresh 52-week high; here’s why

The broad market indices traded green, with Nifty Midcap 100 up 1.2% and Nifty Smallcap 100 up 0.9%. The sectoral indices traded mixed, with Nifty’s Realty, Oil & Gas, and IT remaining in red, while on other hand, Nifty Pharma & Healthcare, were up 1.15% and 1.20%, respectively,

Top three stocks that hit a fresh 52-week high on Monday, July 22, 2024

The stock price spiked as it gained momentum from its peer fertilizer stocks. This positive bias in fertilizer stocks is expected due to the Union Budget proposed to be tabled in parliament tomorrow i.e July 23. Experts anticipate higher allocation towards fertiliser subsidy and on farmers welfare schemes. Higher subsidies would result in reduced production costs and ensure price stability, boosting profit margins for fertiliser companies.

In FY24 the company reported consolidated revenue of ₹23,560 crore declined by 20% YoY and net profit of ₹150 crore dropped by 67% YoY. The operating too witnessed a drop from 4% in FY23 to 3% in FY24.

The NFL received Navratna status in 2024. Navratna companies means those companies that stand out as the top tier among PSUs because of their remarkable financial and operational accomplishments. These organisations have the authority to undertake substantial investments up to ₹1,000 crore without needing approval from the Central Government.

The company’s stock price has surged over 23% in the last one month and 128% in the last 12 months.

Alembic Pharmaceuticals Ltd - The flagship company of Alembic Group’s stock soared 8% peaking at a 52-week high at ₹1,165 on Monday’s trade. The stock has been buzzing in the last few days with the stock gaining over 17% in the last 5 days.

On July 12, the company through Exchange filing announced that it received tentative approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) Selexipag for Injection, 1,800 mcg/vial.

Selexipag is a prostacyclin receptor agonist indicated for the treatment of pulmonary arterial hypertension (PAH, WHO Group I) to delay disease progression and reduce the risk of hospitalisation for PAH. Based on the most recent update to the FDA’s online paragraph IV database listings, Alembic is the sole first applicant to have filed its ANDA for Selexipag for Injection, 1,800 mcg/vial, containing a Paragraph IV certification under the provisions of the HatchWaxman Act.

In FY24, the company reported consolidated revenue of ₹6,229 crore up 10 % YoY, Net profit stood at ₹632 crore, up 78% YoY supported by operating margin of 15%. The stock has surged over 65% in the last 12 months.

August 5, 2024 is the record date for the company's final dividend of ₹2.40. The record date is the day on which the company checks its records to identify shareholders of the company eligible for dividend; a shareholder must hold shares on record date to be eligible.

Godrej Consumer Products Ltd - The India’s leading FMCG company’s stock clinched a 52-week high at ₹1,478, surging around 1.81% in Monday's morning session.

The FMCG stocks have been trading with positive bias, as Godrej Consumer gained over 6% in the last one month. As per FY24’s financials the company has spent over ₹1,011 crore, higher by 47% YoY from ₹687 crore in earlier year on advertisement and reduced stock-keeping unit (SKUs) by 30% through rationalisation process.

Company which aims for double-digit volume growth, is spending more on brands, automation and SKU rationalisation with a "keen focus on simplification", according to the latest annual report of the company.

Also keeping in mind its strategy, company has prioritised resource optimisation and operational efficiency through a stock-keeping unit (SKU) rationalisation strategy across its product lines, focusing particularly on high-performing products, according to the latest annual report. As per company’s management “This approach has streamlined company’s portfolio, resulting in notable improvements in manufacturing efficiency and waste reduction, with this optimisation initiative overall inventory levels have reduced from 93 days to 67 days”.

In FY24 the company reported net loss of (-)₹561 crore against consolidated revenue of ₹14,096. The revenue increased by 6% YoY however the net loss dropped 133% YoY.

Company has informed the Exchange that a board meeting will be held on August 7, 2024 to consider and approve the Q1FY25’s result.