Here's why PC Jewellers, Shree Renuka Sugars and V-mart Retail hit 52-week high

On Tuesday, over 76 stocks advanced to 52-week highs. The benchmark indices, NIFTY50, traded at 25,784, down 0.10%, and SENSEX was at 84,251, down 0.05%. Nifty Bank traded at 52,973, almost flat. The fear gauge, India VIX, fell to 12.43.

The broader market indices traded mixed, with the Nifty Midcap 100 index down 0.11% and the Nifty Smallcap 100 index up 0.59%. The sectoral indices followed the trend, with Nifty IT up 0.53%, the top gainer, while Nifty Realty was down by 0.76%, the top loser.

PC Jewellers Ltd

The retail jewellery chain’s scrip clinched a 52-week high at ₹187.07 after eventually locking at an upper circuit of 5% on Tuesday. This took the company’s market cap close to the mark of ₹8,700 crore.

The stock witnessed a sharp spike after the company announced a significant 1:10 stock split and major fundraising of ₹646 crore. The company said in an exchange filing that it has proposed to split its equity shares in a 1:10 ratio, converting each existing share with a face value of ₹10 into ten shares with a face value of ₹1. The process is expected to be completed within 45 days following the necessary approvals.

In addition, the company will raise a total of ₹646 crore within 18 months through the issuance of 11.5 crore fully convertible warrants. The warrants will be priced at ₹56.20 per unit, with an upfront subscription of ₹161.6 crore, representing 25% of the total warrant price at ₹14.05 per warrant. These plans are designed to enhance shareholder value and increase retail participation.

PC Jeweller's share price delivered a stellar 614% return in the last 12 months.

Shree Renuka Sugars Ltd

One of the country’s leading sugar producer’s stock price surged 3.73% on Tuesday, hitting a 52-week high at ₹56.5.

The stock witnessed a strong surge in trade volume, with 4.60 crore shares and a trade value of ₹255.52 crore traded at 9.55 a.m. on the NSE. The share price has been trading positively in the last five sessions, up over 16%. The company’s market cap reached the ₹12,000 mark.

The new sugar-crushing season begins today, i.e. October 1. Investors remain optimistic about the sugar industry this season on account of the government considering to hike the minimum selling price (MSP) of sugar from the current level of ₹31 per kg, along with ethanol prices.

In a recent media interview, Shree Renuka Sugar’s Executive Chairman Atul Chaturvedi stated “The sugar industry expects a potential increase in ethanol prices to around ₹72 per litre, which would boost sector revenues and margins.”

This comes after comments from Union Food Minister Pralhad Joshi on September 27, who hinted at possible ethanol price hikes for the 2024-25 season. The minister also suggested a review of the minimum selling price (MSP) of sugar and a reassessment of sugar exports.

Currently, ethanol produced from cane juice is priced at ₹65.61 per litre, with ethanol from B-Heavy and C-Heavy molasses priced at ₹60.73 and ₹56.28 per litre, respectively.

According to the company's Executive Chairman, on a rough basis, the contribution from ethanol is to be about 40% of Shree Renuka Sugar’s total revenue, and its revenue stream is from two sources. One is the port-based refineries, and the other is the crushing plant.

V-mart Retail Ltd

The retail store chain’s stock hit a 52-week high of ₹4,475, sky-rocketing 11.07% during Tuesday's morning session, with its market cap reaching ₹8,550 crore.

With the festive season approaching after a good monsoon, retail store brands are expecting to add more numbers to the topline in the upcoming quarter as consumer spending rises.

V-Mart Retail, founded in 2002, is a departmental store chain offering apparel, footwear, accessories, home furnishings, general merchandise, toys, and utility items for men, women, and kids.

In Q1FY25, the company added 7 new stores while closing 3 stores. Network expansion, along with the festive season, is likely to drive V-mart’s revenue growth.

In Q1, the company reported a turnaround performance, with a net profit of ₹12 crore compared to a net loss of ₹21.9 crore in the corresponding quarter last year. The company's revenue from operations increased 15.9% YoY to ₹786 crore.

Year-to-date, the stock has risen over 120% in 2024.