Pidilite Industries, Dr Reddy’s Laboratories and Suzlon clinch fresh 52-week high; here’s why

On Thursday, over 79 stocks advanced to 52-week highs. The benchmark indices, NIFTY50 traded at 24,196, down 0.41%, SENSEX at 79,146, down 0.40%, and the Nifty Bank at 50,169, up 0.10%, while the fear gauge India VIX spiked to 16.59 levels.

The broad market indices relatively outperformed, with Nifty Midcap 100 up 0.19% and Nifty Smallcap 100 up 0.21%. The sectoral indices traded mixed, with Nifty Media, Pharma, and Healthcare traded in green while Nifty Oil & Gas, Metal and IT, were top losers.

Top three stocks that hit a fresh 52-week high on Thursday, August 8, 2024

Pidilite Industries Ltd- India’s trusted brand of adhesive manufacturer's stock price traded to a 52-week high at ₹3,278.95 gaining over 4% on Thursday’s session.

The stock price witnessed this move after the company’s quarterly results for Q1FY25 recorded a stellar performance with a 20% jump in net profit, beating the street estimates. The consolidated revenue grew over 3.7% YoY to ₹3,384 crore, net profit jumped over 20.6% to ₹571 crore, while EBITDA stood at ₹813 crore.

Key highlights for the Q1FY24 were Underlying Volume Growth (UVG) delivering double-digit growth despite heat waves in most parts of the country and election impact. Gross Margins expanded mainly on account of moderation in input prices and improved by 465 bps YoY. EBITDA Margins at 24.6% improved by 187 bps. International subsidiaries (excluding Pidilite USA and Pulvitec Brazil) revenue grew by 9% along with an improvement in EBITDA Margins by 189 bps.

Further, B2B businesses reported UVG of 18% driven by both Domestic and Export segments. C&B businesses UVG was 8%. The growth in Emerging India continued to be higher than in Urban Markets, the company said in the press release.

Management remained positive on market demand and robust growth in the upcoming period, given a healthy monsoon and ensuing festival season, with continued investment in building a resilient supply chain.

Dr Reddy’s Laboratories Ltd - One of India’s leading pharma company’s scrip soared 1.57% on Thursday, peaking at a 52-week high at ₹7,035.

The Hyderabad-based pharma major in its recently announced quarterly result saw revenue growth over 14% YoY to ₹7,696 crore and net profit declined 4% to ₹1,392 crore. Further, the company's board announced a 1:5 stock split of shares, for which the record date has not yet been set. On the operating front, the company's EBITDA during the June quarter rose 1.1% YoY to ₹2,160 crore. The margin dropped 80 bps YoY to 28.2%.

The company has also recently entered into a Joint Venture (JV) with Nestle India to cater nutritional health solutions, Dr Reddy's Laboratories invested over ₹734 crore for a 51% stake in a joint venture with Nestle India, which invested ₹705.6 crore for the remaining 49%.

The JV aims to leverage the capabilities and services of both companies to focus on the health and wellbeing space by combining their strengths and growing their complementary nutraceutical portfolios in the metabolic, hospital nutrition, healthy ageing, general wellness, women’s health and child nutrition in the India and Nepal markets.

The stock price of the company has soared over 14% in the last 6 months and over 24% in the last 12 months.

Suzlon Energy Ltd - This wind energy stock climbed to a 52-week high at ₹73.05, surging over 5% in Thursday morning session. The stock witnessed a trading volume of over 9.90 crore shares with a trade value of ₹717.39 crore on NSE till 10.05 a.m. on Thursday, taking the m-cap close to ₹1 lakh crore mark.

The stock reacted to the company’s announcement regarding the acquisition of a 76% stake in Renom Energy Services from the Sanjay Ghodawat Group in two tranches for ₹660 crore with the stock gaining over 9% since the announcement on August 6.

As per the company press release, the company is immediately acquiring 51% for ₹400 crore and another 25% within 18 months for additional consideration of ₹260 crore. However, management has clarified that the company will not merge Renom with itself and that it will continue as an independently managed company.

Renom Energy Services is the largest Multi Brand Operations and Maintenance service provider in the country with 2.5 GigaWatt assets under maintenance consisting of 1,782 MegaWatt (MW) in Wind, 148 MW in Solar and 572 MW in BOP across customer segments. The turnover of the company for FY24 was ₹213 crore.