SENSEX touches the 85,000 mark for the first time; these three stocks hit 52-week highs on Tuesday

On Tuesday, over 120 stocks advanced to 52-week highs. The benchmark indices, NIFTY50, traded at 24,961, up 0.09%, and SENSEX was at 84,985, up 0.06%. NIFTY Bank traded at 54,026, down 0.15%. The fear gauge, India VIX, spiked to 13.84. The broader market indices traded mixed, with the NIFTY Midcap 100 index up 0.19% and the NIFTY Smallcap 100 index down 0.26%. The sectoral indices followed the trend, with Nifty Metal up 2.05%, the top gainer, while Nifty PSU Bank was down by 0.64%, the top loser.

Top three stocks that hit a fresh 52-week high on Tuesday, September 24, 2024

Max Healthcare rises on expansion optimism

Max Healthcare Ltd - India’s leading healthcare chain’s scrip clinched a 52-week high at ₹1,118 after surging over 6.05% on Tuesday, taking the company’s market cap close to the mark of ₹1.08 lakh crore.

The stock has been witnessing buying interest recently, with share prices up around 29% in the last month. The investors remain optimistic about the stock, with Max Healthcare aggressively expanding capacity. Over the past three years, the company has aggressively increased its bed capacity through organic and inorganic routes. Since FY21, the company has acquired five hospitals with a combined bed capacity 1,950 at a total cost of ₹3,000 crore. The acquired entities also include land parcels, which will allow for further expansion of bed capacity over time.

Max Healthcare plans to add 2,400 beds to its total bed capacity of about 6,700, with a capex of ₹4,000-4,500 crore over the next 3-4 years.

Despite heavy capex, the company has comfortably maintained its liquidity position. In Q1FY25, Free Cash from Operations was ₹258 crore, of which ₹213 crore was deployed on the ongoing expansion plans and for the upgradation of facilities at New Units. Net Cash as of June 30, 2024, stood at ₹66 crore. Recently, Max Healthcare announced the acquisition of a 64% stake in Jaypee Healthcare, with plans to acquire the remaining 36%. The deal includes Jaypee Hospital in Noida and two other hospitals. Max Healthcare aims to enhance patient care and expand services in the NCR region.

Amber Enterprises jumps on rising volume

Amber Enterprises Ltd - The air conditioner maker’s stock price surged 7.34% on Tuesday, hitting a 52-week high at ₹5,361.15.

The stock witnessed a strong surge in trade volume, with 15.45 lakh shares and a trade value worth ₹805.32 crore traded at 10.25 a.m. on the NSE. The share price has been trading positively in the last five sessions, up over 13%. With the stock price crossing the ₹5,000 mark, the optimistic growth outlook cheers its share price.

The domestic AC industry has benefited from a strong Q1 summer. Further, Amber witnessed a margin recovery in Q1FY25, which was 7.3% and 8.2%, respectively, led by operating leverage.

Amber has transitioned from its core focus of room air conditioners (RAC) and structured its diversification in three business segments: consumer durable division, electronics EMS division, railway subsystem and defense division. The imposition of anti-dumping duties on PCBs has helped its electronic vertical acquire new customers.

India's EMS (Electronic Manufacturing Services) industry is witnessing a strong revenue growth trajectory, primarily driven by healthy industry demand, the addition of new segments and onboarding of new customers, increasing domestic manufacturing, import substitution, and global partnerships. Accordingly, earnings growth momentum in the EMS industry will accelerate.

In 2024, Amber's stock has surged over 64% on a YTD basis.

IPCA Laboratories to integrate and consolidate US generics business

IPCA Laboratories Ltd - The pharma company’s stock hit a 52-week high of ₹1,509, soaring 3.6% during Tuesday's morning session, with its market cap reaching ₹38,000 crore. The stock surged following the company’s announcement that its board will meet on September 30 to consider integrating and consolidating its U.S. generics formulations business.

In its filing, the company stated that the meeting would focus on the “integration and consolidation of the generics formulations business in the U.S. market of M/s. Bayshore Pharmaceuticals LLC (wholly owned step-down subsidiary) into Unichem Pharmaceuticals (USA) Inc. (wholly owned subsidiary of the company’s subsidiary), consolidating all of Ipca Group’s USA generics formulations business under one entity."

Additionally, Unichem Laboratories will review the consolidation of its U.S. generics formulations business. Unichem has a broad portfolio of branded generics and APIs (active pharmaceutical ingredients), with its primary markets being the U.S. and Europe.

The company’s management is focusing on scaling U.S. revenues, including from Unichem and Bayshore, to reach $200 million in the near term through new product launches and tender wins.

Year-to-date, the stock has risen over 32.5% in 2024.