Massive Breakout on Charts! 5 Stocks Hitting Multi-Year Highs

Amid a resurgent Indian stock market, characterised by record-breaking performances in indices like the Nifty 50 and the Bank Nifty, select stocks have blazed to multi-year highs.

Building on the positive momentum witnessed on Thursday, Friday saw a continuation of bullish sentiment, with the Nifty 50 surging past the significant 22,700 mark, while the Bank Nifty and the BSE Sensex also made notable strides.

The BSE Sensex regained the psychological 75K peak, touched an intraday high of 75,095 mark, and was missed by a whisker its life high of 75,124.

Amid this fervour, a handful of stocks hitting multi-year highs drew our attention.

In this article, we dive deep into 5 of the hottest stocks currently scaling new heights.

#1 Shakti Pumps

First on the list is Shakti Pumps.

Shakti Pumps is primarily engaged in manufacturing pumps, motors, and controllers. It also offers advanced pumping solutions for a wide range of uses, such as irrigation, horticulture, domestic water supply, and commercial and industrial applications.

It has an extensive product portfolio with a wide range of applications in several industries, including agriculture, building services, power, oil and gas, and mining.

The company has two manufacturing units that can produce over 500,000 pumps per annum.

On 3 May 2024, Shakti Pumps shares surged by 5%, hitting an all-time high of Rs 2,184 on the BSE, marking the third consecutive session of upper circuit lock.

The rally was fuelled by the strong Q4 performance reported by the company a few days ago.

The company reported a 233.65 YoY rise in revenue at Rs 6.1 bn, while the net profit grew multifold to Rs 897 m compared to Rs 22 m a year back.

The rally was further fuelled by the company receiving two additional patents from the government of India in recognition of its innovative endeavours.

Consequently, the cumulative number of patents awarded to Shakti Pumps now stands at 13.

Additionally, a robust order book valued at Rs. 24 bn as of 31 March 2024 further fueled optimism, supported by the acquisition of three new orders worth Rs 2.5 bn from Haryana and Maharashtra.

Looking ahead, Shakti Pumps plans to utilise 46 acres of land allocated by the Madhya Pradesh Industrial Development Corporation in Pithampur, Madhya Pradesh, for future expansions.

#2 Geojit Financial Services

Second on the list is Geojit Financial Services.

Geojit Financial Services is an investment services company in India headquartered in Kochi, Kerala. It operates a network of offices across India and the Middle East.

It was the first company in India to launch online trading facilities, develop franchise models of sub-broking, form joint ventures in West Asia, and the first to begin commodity futures trading in pepper, cardamom, gold, and silver in India.

Geojit Financial Services surged to an unprecedented peak on 2 May 2024, buoyed by heightened activity in high-frequency trading.

This surge can be directly linked to the company's robust Q4 earnings performance.

With an impressive 87.8% year-on-year increase in topline revenue, reaching Rs 2.1 bn, and a substantial 189.9% YoY rise in operating income to Rs 732.1 m from Rs 255.1 m, Geojit Financial Services demonstrated remarkable financial strength.

Notably, net profit also witnessed a significant uptick, soaring by 77.3% to Rs 505.8 m, up from Rs 285.3 m in the corresponding period last year.

Looking ahead, Geojit Financial Services aims to fortify its digital footprint by enhancing its online trading platform and mobile application.

This strategic initiative is poised to cater to the burgeoning demand for digital investment solutions, aligning with evolving market trends and investor preferences.

#3 Indraprastha Medical

Third on the list is Indraprastha Medical.

The New Delhi-based super speciality tertiary care hospital is a collaboration between Apollo Hospitals and the Delhi government.

IMCL operates two hospital facilities, one located in New Delhi and the other in Noida, Uttar Pradesh.

Shares of Indraprastha Medical have climbed 27% in the past month, hitting its lifetime high.

The company hit its lifetime high after Quant Small Cap Fund acquired 550,000 shares in the company for nearly Rs 140 m.

This purchase , representing a 0.6% shareholding, was made at an average price of Rs 249.6 per share, according to bulk deal data disclosed to the stock exchanges.

Earlier in April, HDFC Bank divested a substantial portion of its shares in Indraprastha Medical Corporation.

According to a regulatory disclosure on 4 April, the bank confirmed the sale of a 3.03% equity stake in IMCL, amounting to Rs 554.6 m.

Further, the rally was on the back of multiple growth drivers, such as rising affordability, increasing access, low cost of production, and others, along with government support.

The industry is poised for sustained growth in 2024 and is expected to reach US$ 65 billion (bn).

To promote the pharma sector, the Indian government has announced many policy initiatives in 2023, including the Promotion of Research and Innovation in the Pharma MedTech sector (PRIP), an approach paper on National Pharma Policy displayed thrust on 'One Health' during the G20 Summit.

#4 Savita Oil

Fourth on the list is Savita Oil

Savita Oil started its operation in 1961 with the name Savita Chemicals Ltd, manufacturing liquid paraffin as an import substitute.

Since then, it has expanded its product portfolio and is now a leading manufacturer of different petroleum products.

Today, Savita Oil Technologies is a speciality petroleum products company engaged in manufacturing transformer oils, white oils etc.

Having witnessed an impressive 18% climb in its shares over the past month, reaching an all-time high of Rs 614 in April 2024, Savita Oil continues to hover near its peak level.

One significant milestone contributing to its recent surge was becoming the first Indian lubricant company to manufacture the Ester molecule, a breakthrough with applications in biodegradable products and cooling agents for electric vehicles, particularly two and three-wheelers.

Expanding its horizons, the company is exploring the potential of utilising this molecule for immersion cooling in data centres, a burgeoning technology market expected to reach US$ 2 bn by 2031.

With the successful commercialisation of the Ester molecule in August 2023 after extensive testing since 2015, Savita Oil underscores its commitment to sustainability by offering biodegradable alternatives to conventional base oils.

In its investor presentations, the company has outlined plans to introduce a range of high-performance fluids in the upcoming quarters, leveraging its existing portfolio spanning various product categories.

#5 Hi-Tech Gears

Fifth on the list is Hi-Tech Gears.

Hi-Tech Gears offers products for 2-wheelers, light vehicles, commercial vehicles, off-highway vehicles, and engine components.

Its offerings include high precision gears and shafts, straight and involute special ratchets, kick spindles, power take-off components, etc.

The shares of this auto ancillary company Hi-Tech Gears which has been growing like Tesla, hit an all-time high of Rs 1,280.5 in April 2024 and are still trading near its all-time high level.

This rally can be attributed to some big names entering the stock in the current quarter.

One such name was Nemish Shah, who now holds 7.17% equity in the company worth Rs 1.2 billion (bn) as of Friday's close.

A billionaire in the Indian market, Nemish Shah was the man who took Infosys public.

He is the co-founder and director of Enam Holdings and prefers the value investing style of investing.

Further, Indian auto and auto ancillary stocks have remained in focus ahead of Elon Musk's upcoming visit to India later this month.

The billionaire entrepreneur is expected to unveil plans to introduce Starlink as well along with Tesla.

Whenever there's news around Tesla's India entry, auto ancillaries are seen as well-placed during this scenario.

The Hi-Tech Gears has guided for revenue from the current order book in the next 2-3 years at around Rs 1,100 m to Rs 1,450 m per annum.

The company has also decided to set up all-new forthcoming facilities as "ECOFAC" i.e. sustainable green manufacturing plants.

Conclusion

Investing in stocks that are reaching multi-year highs presents both opportunities and challenges.

On one hand, such stocks often indicate strong underlying momentum and positive market sentiment. If supported by robust fundamentals, like consistent earnings growth or a favourable industry outlook, these stocks may continue to perform well, offering the potential for further gains.

However, there's also the risk of overvaluation, as investors may already be paying a premium for these stocks.

Additionally, broader market conditions and sentiment should be considered.

In a bullish market, stocks hitting multi-year highs may have more room to grow, while in a volatile market, there's increased risk.

Diversification is crucial to manage risk, as investing solely in such stocks could lead to concentrated exposure.

It's essential to have a clear risk management strategy in place, including profit targets and stop-loss levels, to protect investments.

Ultimately, the decision to invest in stocks hitting multi-year highs should align with individual investment goals, risk tolerance, and long-term strategy.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...