HUL, NRB Bearings, Vinati Organics, GMM Pfaudler hit new highs

Shares of Hindustan Unilever (HUL), NRB Bearings, Vinati Organics and GMM Pfaudler hit their respective new highs. PVR, the leading Indian cinema exhibition firm and Ircon International, the construction and engineering company touched fresh 52-week highs on the BSE on Monday.

HUL hit a new high of Rs 1,871 on the BSE in intra-day trade, surpassing its previous high of Rs 1,865 recorded on December 13 this year. In the past one month, the stock of FMCG major outperformed the market by gaining 10% as compared to a 2% rise in the S&P BSE Sensex.

Earlier this month, HUL said it was merging GlaxoSmithKline (GSK) Consumer Healthcare with itself in a transaction worth Rs 317 billion. Most brokerages have given a thumbs-up to the deal and maintained either a ‘hold’ or a ‘sector outperformer’ rating on HUL post the development.

Motilal Oswal Securities maintains ‘buy’ rating on HUL with a target price of Rs 2,140 as the brokerage firm believes the company has obtained a good deal, which is EPS accretive from the beginning. The company also benefits because the merger is at a reasonable valuation, GSK has agreed to a share-swap deal, HUL has not been saddled with the global business, and being listed, transparency of GSK is extremely high.

Ircon International has rallied 10% to Rs 470, its highest level since listing on September 28, this year. The company had raised Rs 4.7 billion through initial public offer (IPO), at issue price of Rs 475 per share. The company offered a discount of Rs 10 per equity share on the offer price to retail individual bidders and eligible employees bidding.

Ircon International is a state-owned engineering and construction company, specialising in major infrastructure projects, including, railways, highways, bridges, flyovers, tunnels, aircraft maintenance hangars, runways, EHV sub-stations, electrical and mechanical works, commercial and residential properties, development of industrial areas, and other infrastructure activities.

Shares of GMM Pfaudler hit a new high of Rs 1,289, up 5%, extending its past week 14% rally on the BSE on expectations of strong earnings growth.

GMM Pfaudler is a leading supplier of process equipment to the pharmaceutical and chemical industries. The company had reported a healthy 50% year-on-year (y-o-y) growth in net profit at Rs 189 million for H1FY19 (April-September). Operating revenue grew 32% at Rs 1,924 million on y-o-y basis. Ebitda (earnings before interest, tax, depreciation and amortization) margin expanded 300 bps at 16% in H1FY19 from 13% in H1FY18.

PVR hit a 52-week high of Rs 1,579, up 1.5%, gaining 7% in the past one week, as compared to a 3.6% rise in the S&P BSE Sensex. The stock is trading close to its all-time high level of Rs 1,660 touched on April 28, 2017, in intra-day trade.

Analysts at Equirus Securities have ‘Long’ rating on the stock with target price of Rs 1,594 as PVR is set to benefit from its unmatched presence in tier-1 cities, expansion in the South and an improved content pipeline.

COMPANY	LATEST	ALL-TIME HIGH	PREV HIGH	PREV DATE
GMM PFAUDLER	1270.00	1289.00	1247.00	14-Dec-18
HIND. UNILEVER	1853.65	1870.50	1865.00	13-Dec-18
IRCON INTL.	456.70	470.00	439.85	06-Dec-18
NRB BEARINGS	219.90	223.60	218.90	14-Dec-18
SHRIRAM AMC	169.25	169.25	164.70	14-Dec-18
VINATI ORGANICS	1694.00	1731.35	1694.90	14-Dec-18