Here’s why E.I.D Parry, RCF, Dmart and Cochin Shipyard surge to a 52-week high today

On the back of positive global cues, the benchmark indices opened at a fresh record high on Wednesday. However erased all gains in the initial hours and later throughout the session moved between gains and losses and closed with marginal change.

At the closing bell on Wednesday Bank-Nifty closed at 51,398 points with a gain of 1.90% after surging to a record high of 51,957, Nifty at 23,516 points, marginally lower by (-) 0.18% after hitting 23,600 levels for the first time. During the day over 227 stocks advanced to a 52-week high on the NSE.

Four trending stocks that hit a 52-week high on June 19, 2024

Last week a government official quoted to one of the news daily that the government is considering hiking the MSP on sugar which was last time hiked in FY19 to ₹40-41/kg range in the coming October season. The sugar stocks have also rallied in the last few weeks on the government's continued emphasis on ethanol-blended fuel.

EID Parry is engaged in the Nutrient and Allied Business, Crop Protection, Sugar, Co-generation, Distillery, Nutraceuticals, and Others. The operating margins of the company have improved from 8% in FY23 to 9% in FY24. The scrip has surged over 74% in the last 12 months

The GST council meeting on June 22, 2024, would also have market observers' attention with respect to the council’s decision on the removal of GST on fertilizers. Currently fertilizer falls under a 5% slab of GST with a proposal before the council to exempt fertilizer from GST, the final call is likely to be taken by the council in the forthcoming meeting.

The Mumbai-based Rashtriya Chemicals and Fertilizers is a PSU company, which has managed to perform well in Q4FY24 with ₹95 crore consolidated net profit against a net profit of ₹11 crore in Q3FY24. The stock has gained almost 71% in the last 12 months.

Recently on June 4, CRISIL upgraded the Dmarts rating on the long-term bank facilities to ‘CRISIL AAA/Stable’ from ‘CRISIL AA+/Positive’. DMart’s operating performance registered strong growth in FY24 with a rise in volumes, scale-up of stores opened over the past couple of years, and new store additions.

With inflation moderating the demand is expected to go up along with improvement margins of Dmart’s business, also store addition would add to revenue of companies in future.It has strong growth potential given its healthy balance sheet with no debt and strong operational efficiency.The stock has soared 24% in last 12 months.

The Defense Minister after assuming charge for the 2nd term has set an ambitious target to export over ₹50,000 crore worth of defense equipment by 2028-29 has boosted sentiments across industry.

Cochin Shipyard Ltd is the largest shipbuilding and maintenance facility in India.Its stock price has delivered a stellar return in the last 12 months with 662% bumper return.