Know why GAIL, Crompton and IRFC hit a fresh 52-week high today

Top three stocks that hit 52-week high on Tuesday, July 9, 2024

The stock witnessed buying interest as the company is expected to report strong financials in Q1FY25. As per Kotak securities report, the company's EBITDA is to surge 16% and 14% on an annual and sequential basis, respectively. The increase would be primarily due to higher transmission segment volumes, an uptick in the petrochemical segment, higher utilisation, and a softening of LNG prices.

In June, the company announced that its Board accorded approval to advance its Net Zero target for Scope-I & 2 emissions by five (05) years, from the year 2040 to the year 2035. This decision follows an extensive study undertaken by GAIL to enhance its sustainability goals and align with India's broader Net Zero commitments. This step shows companies commitment to sustainable development and long-term vision especially in the growing era of ESG (Environment, Social and Governance).

In FY24 the company's bottom line gave a remarkable performance with consolidated net profit at ₹9,903 crore ( up 77% YoY), and margins improved from 5% in FY23 to 11%. However, the top line witnessed a decline to ₹1,33,228 crore (down 8.5% YoY).

GAIL is a PSU energy corporation with primary interests in the trade, transmission and production distribution of natural gas.

Crompton Greaves Consumer Electricals Ltd - The stock price of consumer electrical manufacturer surged 5% to a 52-week high at ₹441.95 on Tuesday.

The stock witnessed positive bias on account of the government reopening of the PLI scheme for white goods. The Ministry of Commerce said that the Government has reopened the application window for the Production Linked Incentive (PLI) scheme for white goods from July 15 to October 12, citing industry appetite to invest more in the scheme originally launched in 2021.

The white goods manufacturer is planning to make a capex of around ₹80 to ₹100 crore in the next 2 years largely towards manufacturing capability improvement, also behind product development and product innovation. In FY24 the company reported growth in consolidated sales by 6.45% and a drop in consolidated net profit by 7% on a YoY basis.

Tomorrow i.e. July 10, 2024, is the record date for the final dividend of ₹3 per share of the company. The record date is the date set by the company to decide the shareholders who are eligible to receive the dividend.

Indian Railway Finance Corporation (IRFC) Ltd - The stock of PSU financiers exclusively for Indian Railway went on to hit a fresh 52-week high on Tuesday’s trade at ₹213.24 after surging almost 5.55%.

The railway stocks have been building momentum with the budget session of parliament coming up as the street anticipates policy continuity in railway infrastructure expansion and upgradation. The budgetary allocation towards railway projects was increased to ₹2.52 lakh crore for 2024-25 in the interim budget. Indian railway companies are likely to expand their capex and sustain volume growth.

Another development which fueled the railway stocks was the Minister for Railways Ashwini Vaishnav's disclosure of plans for 2,500 new general passenger coaches, and 10,000 additional coaches. The Minister also announced the production of 50 new Amrit Bharat Trains, a high-speed and luxury train service.

IRFC has reported a consolidated revenue and net profit of ₹26,645 crore and ₹6,412 crore in FY24. Indian Railway Finance Corporation Limited (IRFC) is the market borrowing arm of the Indian Railways, specialising in financing rolling stock and railway infrastructure assets acquisition.