Shares of specialty chemical company Alkyl Amines Chemicals, consumer durables company Dixon Technologies, tractors manufacturer Escorts, information technology firm Larsen & Toubro (L&T) Infotech and tea & coffee company Tata Consumer Products from the S&P BSE 500 index hit their respective fresh record highs in the intra-day trade on the BSE on Wednesday.
Dixon Technologies was up 4 per cent to Rs 6,333 today, extending its Wednesday’s 4 per cent rally on reports that the sector witnessed 95-100 per cent recovery in sales in June 2020 post relaxation of the novel coronavirus-induced lockdown. The company is the largest home-grown, design-focused, and solutions company engaged in manufacturing consumer durables, lighting products, and mobile phones.
Escorts hit a fresh record high of Rs 1,126, up 3.5 per cent. The stock has rallied 63 per cent in the past three months on the expectation of healthy earnings on the back of higher tractor sales. Analysts say tractors are likely to see relatively faster recovery in the second half of this fiscal. The segments benefit from a bumper Rabi production and the forecast of a normal monsoon, which augur well for rural incomes. For tractors, the sentiment is only moderately negative as agricultural activities are exempt from the lockdown, and as the prospects for the crop season are better.
L&T Infotech hit a new high of Rs 2,075 and the stock was trading higher for the sixth straight day, gaining 7.5 per cent during the period, on the expectation of earnings recovery in the second half of the financial year 2020-21. L&T Infotech remains a strong Tier II player backed by strong and stable leadership and execution track record, which reflects in the steady rise across client revenue buckets and a steadier margin profile (unlike volatility seen in most Tier II techs as well as a few in Tier I), say analysts.
Tata Consumer Products gained 14 per cent in the past six trading days, hitting a new high of Rs 437 today. The global brokerage firm Credit Suisse initiated the coverage on the stock with an "outperform" rating and a 12-month target price of Rs 490. The brokerage firm sees the potential for faster growth in the tea and salt business, rapid expansion in pulse/spices, and margin expansion from merger synergies. "We expect a 16 per cent earnings compound annual growth rate (CAGR) over FY20-23 and an ROIC (return on invested capital) of 34 per cent by FY23," the brokerage said.
Alkyl Amines Chemicals touched a fresh all-time high of Rs 2,374, up 3 per cent on the BSE. In the past three months, the stock soared 69 per cent, against a 17.5 per cent rise in the S&P BSE Sensex. The company had reported strong earnings for the quarter ended March 2020, with profit before tax jumping 93 per cent year-on-year (YoY) to Rs 61.1 crore from Rs 31.56 crore in the year-ago quarter, due to lower raw material cost.
COMPANY LATEST ALL TIME HIGH PREV HIGH PREV DATE ALKYL AMINES 2348.25 2374.35 2345.00 07-Jul-20 DIXON TECHNOLOG. 6255.35 6332.70 6150.00 08-Jul-20 ESCORTS 1111.25 1125.50 1118.00 08-Jul-20 L & T INFOTECH 2094.75 2096.95 2070.00 08-Jul-20 TATA CONSUMER 430.50 437.15 436.00 08-Jul-20