Trent, Dixon Technologies and Mahanagar Gas hit 52-week highs: Here’s why

On Tuesday, over 107 stocks advanced to 52-week highs. The benchmark indices, NIFTY50, traded at 24,429, up 0.18%, and SENSEX was at 83,126, up 0.17%. NIFTY Bank traded at 52,222, up 0.13%. The fear gauge, India VIX, fell to 12.46.

The broader market indices traded in the red, with the NIFTY Midcap 100 index marginally down 0.04% and the NIFTY Smallcap 100 index down 0.37%. The sectoral indices traded mixed, with NIFTY IT up 0.43%, being the top gainer, while NIFTY Media, down by 0.91%, remained the top loser.

Trent Ltd shares rise for seventh stright day

Tata-backed leading retail fashion chain’s scrip clinched a 52-week high at ₹7,508 after surging over 2.60% on Tuesday, taking the company’s market cap close to the mark of ₹2.67 lakh crore.

The stock is witnessing buying interest amid speculation that Trent could replace Bajaj Finserv, in an annual exercise of SENSEX rebalancing, the review period for this rebalancing ends on October 31, with changes expected to be announced in November.

Trent’s share price has surged over 145% in 2024 so far and rallied over 258% in the last 12 months. This record rally has been driven by the company’s rapid store expansion and strong financial performance. With rising demand and the upcoming festive season the growth momentum is expected to maintain.

In Q1FY25, Trent reported a net profit of ₹392 crore, a whopping 126% surge on a YoY basis. The company's revenue stood at ₹4,104.4 crore, marking a 56% increase on a YoY basis.

At the operating front, Westside and Zudio improved margins, while a key highlight in Q1 remained its fresh food and groceries brand, Star Bazaar, which reported a 29% increase in operating revenue and a like-for-like (LFL) growth of over 20%. This helped reduce losses.

Dixon Technologies sees strong investor buying

The electronic manufacturer’s stock price surged around half a per cent (0.89%) on Tuesday, hitting a fresh 52-week high at ₹14,175. The stock has seen strong investor traction in the past two weeks, rising nearly 8% last week and is up over 7.5% this week as well.

Today, the stock witnessed a strong surge in the trade volume of 2.91 lakh shares with a trade value worth ₹402.25 crore till 10.53 a.m. on NSE.

The sudden surge in stock price comes as the market is anticipation a stock split. Earlier in 2021 the stock of Dixon had touch levels of ₹20,000 before the company had carried out a stock split, dividing one share of ₹10 into five shares of ₹2 each. However, the company has not announced any plan for this.

On the business front, the company has a strong growth prospectus from the localisation of mobiles and IT hardware. In a recent press release, the company announced that its subsidiary Padget had entered into an MOU with Asus for the manufacturing of notebooks.

ASUS is an iconic brand known for the world’s best motherboards and high-quality personal computers, monitors, graphics cards, servers, routers, smartphones, optical storage, multimedia products, peripherals, wearables, and other technology solutions.

In 2024, so far the stock of Dixon has surged over 111% on a YTD basis.

Mahanagar Gas rise on upbeat growth prospects

The city gas distributor’s stock traded to a 52-week high at ₹1,943, rising more than 6% in morning trade. The company’s market cap reached close to ₹19,00 crore mark.

The stock is witnessing a share uptick, as investors anticipate strong volume growth in the remaining financial year, driven by expansion into new geographies and infrastructure development.

In Q1 FY25, the total sales volume increased by 2.1% quarter-over-quarter, reaching 3.859 million metric standard cubic meters per day. The CNG segment saw a 4% rise in volume, while both the domestic and industrial PNG segments experienced a decline of over 2%.

On a quarter-over-quarter basis, MGL reported a 1.5% increase in revenue, totalling ₹1,590 crore. EBITDA rose by 6.3% to ₹418 crore, with an EBITDA margin improving to 26.3% from 25.1%. Net profit grew by 7.4% to ₹285 crore.

So far in 2024, the stock has surged over 60% year-to-date.