Raymond, Azad Engineering and Walchandnagar Industries hit the upper circuit; here's why

The broader market indices traded in green with Nifty Midcap 100 and Nifty Smallcap 100 up by 0.31% and 0.69%, respectively. Among sectoral indices, all major Nifty indices traded in green except NIFTY Realty down 0.82% and Nifty Pharma and Healthcare marginally in red.

Stocks hitting the upper circuit on Friday (July 12, 2024)

Raymond Ltd

The stock price of India’s leading textile company’s scrip on Friday got locked in the upper circuit limit after soaring 5% at ₹2,101.35.

The stock had only buyers in the market as the share discovered their ex-demerger price ( after demerging lifestyle business) on the exchange. July 11th was the ex-date for its lifestyle business demerger.

Recently, the company announced the demerger of its lifestyle business venture into Raymond Lifestyle (previously Raymond Consumer Care) and established the entitlement of the company's shareholders. Four equity shares of Raymond Lifestyle of ₹2 each, fully paid up, shall be issued and assigned to Raymond shareholders holding five equity shares of ₹ 10 each, fully paid up as of the record date. The lifestyle division is expected to be listed in the next two months. The demerger is expected to unlock value for shareholders.

The Raymond Group is net debt-free after it sold its FMCG business in FY24 for ₹2,825 crore. Both listed companies, Raymond and Raymond Lifestyle, shall now stand net debt-free. The Raymond group would now have three core sectors: lifestyles under the new entity Raymond Lifestyle and real estate and engineering under Raymond.

Azad Engineering Ltd

The stock of Azad Engineering on Friday surged over 5% and eventually hit the upper band price at ₹1,781.90.

The stock witnessed positive bias, with the company informing the exchange about receiving a 5-year award from Siemens Energy Global CmtH & Co. KG, Germany, to manufacture and supply critical rotating components for their Global demand for Advanced Gas and thermal Turbine Engines.

As of March 31, 2024, the company's order book stood over ₹3,000 crore, up from around ₹1,800 crore on March 31, 2023. In FY24, the company reported growth in consolidated revenue and net profit by over 35% and 637%, respectively, on a YoY basis.

Azad Engineering is a key manufacturer supplying qualified product lines to global OEMs in the energy, aerospace, defence, and oil and gas industries. It specialises in manufacturing highly engineered, complex, and mission-critical components with a 'zero parts per million' defect requirement. The company competes with manufacturers from China, Europe, the USA, and Japan.

Walchandnagar Industries

On Friday, Walchandnagar Industries' stock price jumped over 5% to hit the upper price band limit at ₹365.88. Walchandnagar Industries has a global presence and is known for its pioneering achievements and contribution to nation-building. It specialises in engineering, project management, and manufacturing in areas like Nuclear Power, Aerospace, Defence, and more.

The company has informed the Exchange about the Board Meeting to be held on July 15, 2024, to consider fundraising for the issuance of unlisted, secured, redeemable, and non-convertible debentures aggregating to ₹74 crore.

In FY24, the company reported a consolidated sale of ₹302 crore, a 6% decline on a YoY basis. The company posted a net loss of ₹42 crore against a net profit of ₹20 crore in the previous year. At an operational level, the company's financials remained at breakeven for FY23.

The company has informed us that the 115th Annual General Meeting of Walchandnagar Industries Limited will be held on Wednesday, August 14, 2024.

Stocks hitting the lower circuit on Friday (July 12, 2024)

Aurionpro Solutions Ltd

The share price of Aurionpro Solutions plummeted 5% on Friday’s trade, eventually locking into a lower circuit limit at ₹1,653.35.

The shares of company had no buyers and only sellers in today’s trade. Aurionpro Solutions utilises cutting-edge Intellectual Property to provide concrete business outcomes for global corporations. Their innovative products target Transaction Banking Platforms, Customer Experience, Smart city, and Smart Transportation challenges.

Company has informed the Exchange about the Board Meeting to be held on July 24, 2024, to inter-alia consider and approve the Unaudited Financial results of the company for the quarter ended June 2024.

In FY24, the company posted consolidated revenue of ₹887 crore (35% YoY growth) and ₹143 crore net profit (42% YoY growth). The shareholding pattern of Q1FY25 saw an increase in FIIs holding in the company from 6.27% in the previous quarter to 12.70%.