However, it all went downhill as soon as US-based short seller Hindenburg released a report on the Adani group.
The Adani-Hindenburg saga was followed by rising interest rates and a global banking crisis. In the first three months of 2023, one event after the other has kept the markets busy.
But just as there’s a silver lining in every cloud, so too are stocks that continue to rise. These stocks go against the general trend of the market and come out on top.
In this article, we will talk about five such stocks. These Shares hit their 52-week high In the recent sluggish market sentiment.
#1 L&T
The first name in this list is of L&T.
Larsen & Toubro, commonly known as L&T, is an Indian multinational conglomerate.
It deals in engineering, construction, manufacturing, technology, information technology and financial services. The headquarter of the company is in Mumbai.
L&T stock reaches 52-week high 2,329.9 on 11 April 2023. Its share price is up 9.6% in 2023 so far (as of April 12).
The engineering company has been in limelight for repeatedly winning orders and that too big wins. The company’s share price hit a record high on Monday this week after it emerged as the lowest bidder for the redevelopment of the New Delhi railway station.
On the same day, it also bagged a significant order for its hydrocarbon business. The business has bagged an order from Chambal Fertilizers & Chemicals under the Advent (Advanced Value Engineering & Technology) business vertical.
In the last three months, orders for L&T have increased significantly, boosting investor confidence.
The government plans to lay significant emphasis on the development of the country’s infrastructure. The scheme was assisted by a massive budgetary allocation 10 trillion (TN) capital investment plan of the government for the financial year 2023-24.
Right now, large orders and overall sectoral tailwinds are pushing L&T share price to a new peak. No wonder L&T is one of the top performing stocks of March 2023.
#2 ITC
ITC is second on the list. You probably guessed this stock when you opened this article … how much of a promotion this hotel to cigarette company is.
ITC is India’s largest cigarette and one of the largest fast-moving consumer goods (FMCG) companies. It has a 78% market share in cigarettes and has a presence in other business segments such as staples, biscuits and personal care products.
The company is also present in paperboard, printing and packaging business.
ITC reaches 52-week high 398.2 on 11 April 2023. Its share price has gained 18.4% in 2023 so far (as on 11 April 2023).
Visualize a big happy event that is about to happen in your life. You and the people around you will be excited before the event actually happens, right? Something similar is happening with ITC shares as well.
ITC shares have gained in the recent past due to strong business outlook. The market is expecting a strong performance from ITC in Q4:2023.
With softening of key commodity prices, FMCG companies have cut prices and increased grammes in the last six months. As a result, volumes are expected to pick up in the January-March quarter. Its clear advantage of being the majority market shareholder can be seen in ITC’s quarterly results.
ITC has delivered a resilient performance over the past few quarters despite an uncertain demand environment and sustained inflationary pressure on margins.
The resilient performance was driven by good recovery in its core cigarette business, steady double-digit growth in non-cigarette FMCG business, and accelerated growth in hotels and paperboard, paper and packaging (PPP) business.
ITC share price also got a boost from Budget 2023. Finance Minister Nirmala Sitharaman announced an increase in agriculture credit target by over 11% on YoY basis in the budget. This is expected to benefit agri-based stocks like ITC.
Further, on 7 April 2023, ITC announced that it has fully divested 26% of the paid-up share capital held in its joint venture company, Espirit Hotels. As a result, Espirit Hotels ceased to be a joint venture company of the company.
#3 Bajaj Auto
Next on the list is Bajaj Auto.
Bajaj Auto is an Indian multinational automotive manufacturing company based in Pune. It manufactures motorcycles, scooters and auto rickshaws. Bajaj Auto is a part of the Bajaj Group.
It is the world’s third largest manufacturer of motorcycles and the second largest in India. It is also the world’s largest three wheeler manufacturer.
Bajaj Auto’s stock reached a 52-week high 4,305 on 12 April 2023. Its share price is up 19.9% in 2023 so far (as of April 12).
The company was on the radar ever since it entered the much-awaited Electric Vehicle (EV) segment. The company has played the differentiating card in the EV game as it enters the premium segment.
The headwinds in the auto segment could keep sales volumes under pressure, though the premiumization trend could act as a cushion.
The company plans to eventually sell 10,000 electric vehicle units per month in the next 3-6 months, which is an ambitious target. India’s growing EV market,
On 10 April 2023, it completed the transfer of Triumph’s India sales and marketing operations to Bajaj Auto. The transfer links to an announcement made in 2020, where a strategic partnership was announced between the two companies to create a new range of mid-sized Triumph motorcycles.
The new range is expected to be launched in 2023. Reportedly two bikes are already under testing. The road is bullish on Bajaj Auto due to the imminent launch of Triumph Motorcycles.
#4 Siemens
The fourth place in this list belongs to Siemens.
Siemens is a leader in infrastructure facilities, digitization and electrification in India. It is one of the world’s largest producers of energy-efficient resource-saving technologies.
Siemens share price hits 52-week high 3,400 on 10th April 2023. Its share price has gained 17.9% in 2023 so far (as of April 12). It is one of the top performing large-cap stocks of 2023.
Finance minister allocated in budget 2023 for 2.4 tn railway sector Which is the highest ever outlay for this sector. The increasing focus of the government on the development of the railway sector is a boon for Siemens.
The order book of the company is increasing due to the change in focus of the government.
In January 2023, the company won the biggest railway order ever. it almost won an order 260 B.N. This includes an order for 1,200 locomotives from the Indian Railways. These 1,200 locomotives will be delivered over a period of 11 years followed by a maintenance period of 35 years.
The railway sector is witnessing major changes as the government has become more transparent and has moved towards modernization and electrification of railways. Siemens’ management wants to be a part of this process of developing an efficient railway sector and in turn garner large orders.
The government’s focus with the PLI scheme is on semiconductors, batteries, etc., and these are areas where Siemens is present, both in its technologies as well as software offerings.
Thus, Siemens is all set to drive the upcoming railway capex theme.
#5 UltraTech Cement
Last on the list is UltraTech Cement.
UltraTech Cement is the largest manufacturer of gray cement, ready-mix concrete (RMC) and one of the largest manufacturers of white cement in India.
UltraTech Cement hits 52-week high 7,792.1 on 11 April 2023. Its share price has gained 9.4% in 2023 so far (as of April 12).
The rally is driven by tremendous sales volume. The company has achieved 100 million tonnes of production, dispatch and sales in the financial year 2022-23. Its consolidated sales grew by 12.4% to 105.7 million tonnes (MT) in the said financial year.
Last month, the cement major had announced commissioning of 1.3 million tonnes per annum brownfield cement capacity at Hirmi in Chhattisgarh and 2.8 million tonnes per annum greenfield cement capacity at Cuttack in Odisha.
Cement stocks have come under pressure in the recent past due to rising input costs. The company’s profits were sinking due to high power and fuel costs. The cost of input material like coke and pet coke was also increasing.
However, cement prices rose in February 2023, giving a big boost to the company’s share price.
The Aditya Birla Group company is not out of danger yet as fuel prices or energy costs are likely to increase for the next few months. Pet coke prices may continue to move higher.
However, strong demand in the cement sector may offset the negative effects of rising prices. Cement manufacturing companies are expected to do well over the next few years due to improved demand prospects led by infrastructure and housing sectors, increased industry consolidation, and regulatory changes in allocation of limestone blocks.
Factors such as sustained gains in market share, timely capacity expansion and higher capacity utilization are likely to give the company an edge over its competitors.
investment takeaway
Stocks trading at 52-week highs are often considered attractive. Investors expect these stocks to continue their momentum for some time and benefit from some more upside.
However, investors should be equally careful. Stocks that hit 52-week highs may or may not be trading at expensive valuations.
Moreover, when market sentiment turns bad, the bright prospects that are driving the rally at the moment may soon fade away. In such a situation, these shares are no longer attractive.
Lastly, rather than focusing too much on price action, your ultimate focus should be on fundamentals and valuations.
Disclaimer:This article is for information purposes only. This is not a stock recommendation and should not be treated as such.
This article is syndicated equitymaster.com
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