A total of 19 of BSE 500 stocks logged new highs in June, data from Ace Equity showed.
Index heavyweight Reliance Industries (RIL) stole the limelight as it is the first company to have a market capitalization of more than $150 billion. The oil-to-telecom conglomerate’s stellar show was backed by a string of marquee deals for its much-coveted Jio Platforms, successful record rights issue, and as the company achieved net debt free status earlier than promised.
“RIL has indeed pulled up the markets so thus far and that was not surprising because the fundamentals of Reliance have been transformed ever since they have been managing to strike those multiple deals for Jio platforms,” said Mahantesh Sabarad, head of retail research at SBICAP Securities.
As many as 6 of these 18 companies were from the healthcare sector. They include Alembic Pharmaceuticals, Biocon , Astrazeneca Pharma India, Granules India, Divis Laboratories and JB Chemicals & Pharmaceuticals.
Ajay Bodke, CEO-PMS at Prabhudas Lilladher pointed that prior to the rally, the stock prices of pharma companies were depressed for last 3-4 years. “From being the most favoured sector earlier, it has become ones if the most underowned and unloved one,” said Bodke, adding that when the lockdown started, and fears of Covid started rising, the sector emerged as a safe-haven sector.
While the sector has caught up with all the underperformance, it was time to look at fundamentals now. “The sharp rise from the bottom has ensured that the undervaluation has been addressed. Now, the pharma has adequate representation in institutional investors; portfolios,” said Bodke.
“Further upmove will depend on underlying fundamentals such as earnings growth, monetizing opportunities from ANDAs filed in the foreign markets and cash flow generation,” he said.
Also in the list was renewable energy firm Adani Green Energy. This company has surpassed Adani Ports and Special Economic Zone (SEZ) to become the most valued Adani Group Company in terms of market capitalization. The stock has jumped a whopping 982 per cent over last one year, and is up 165 per cent for the year to date. The company is now the largest renewable power generator in the country with 15 GW of renewable capacity.
Contract manufacturer Dixon Technologies (India) has been riding high on the “Make in India” wave. The stock has more than trebled from its 52-week lows seen in August.
Blackstone-controlled packaging products maker Essel Propack scaled a record high on June 22. It has risen a mere 8 cent so far in 2020.
Biocon’s unit Syngene International has nearly doubled from its March lows. The company recently announced a deal with HiMedia Laboratories to produce and distribute ELISA test kits for Covid-19.
Farm inputs provider Coromandel International rose to record high, riding high on stellar earnings. The company’s March quarter net profit surged 112.2% to Rs 234.20 crore.
Muthoot Finance, the world’s largest gold loan financier, saw its shares logging a record high this month. Its March quarter profits swelled by 59 per cent. The south India-based lender’s assets under management grew 22 per cent year-on-year. Besides, a 15 per cent fall in provisions helped boost net profit.
Biscuit maker Britannia Industries rode the wave of low-ticket consumption demand and emerged a winner from the disruption caused by the lockdown. Other stocks that scaled record highs included Vaibhav Global, GMM Pfaudler and PI Industries.
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