Trent, Dixon, Ipca, Coforge, Akzo Nobel hit record highs; rally up to 8%

In Q2FY25, Dixon Technologies; revenue may rise 91 per cent Y-o-Y on robust growth in mobiles & new acquisition, according to analysts at Elara Capital

Shares of Tata group company Trent; consumer electronics firm Dixon Technologies; drug maker Ipca Laboratories; information technology company Coforge; and paint manufacturer Akzo Nobel India hit their respective record highs today. These stocks from the BSE 500 universe staged a strong rally in the equity market on Tuesday. The stocks rallied up to 8 per cent as compared to 0.87 per cent rise in the BSE Sensex today at 02:16 PM.

Among individual stocks, Dixon Technologies surged 8 per cent to Rs 14,595 on the BSE in the intraday trade. The stock surpassed its previous high of Rs 14,499, touched on September 24. Thus far in calendar year 2024 (CY24), Dixon Technologies' stock market price has more-than-doubled, zooming 125 per cent. In comparison, the BSE Sensex rallied 13 per cent during the same period.

 

Dixon Technologies is a home grown design-focused tech solutions company, engaged in manufacturing products in the consumer durables, lighting and mobile phones markets in India. Its diversified product portfolio includes consumer electronics like LED TVs, home appliances like washing machines, lighting products like LED bulbs and tubelights, downlighters, mobile phones, and CCTVs and DVRs, wearables, and refrigerators, among other appliances. Dixon also provides solutions in reverse logistics, that is, repair and refurbishment services of LED TV panels.

According to analysts at Elara Capital, consumer electricals, durables, and electronics firms may see 35 per cent revenue growth year-on-year (Y-o-Y) in the September quarter (Q2FY25), led by rising localisation in electronics manufacturing services (EMS), continued growth in room air conditioners (RAC), robust growth in C&W, and stocking up ahead of the festival season for durables to drive growth. Dixon's revenue may rise 91 per cent Y-o-Y on robust growth in mobiles and new acquisition.

That apart, shares of Tata group retail company Trent, too, soared 8 per cent to Rs 8,076.10, surpassing its previous high of Rs 7,939, hit on September 26. So far, in CY24, Trent share price has zoomed 167 per cent. It has outperformed the market in the past 10 consecutive years.

Trent's primary customer propositions include Westside, Zudio, and Trent Hypermarket, which operates in the competitive food, grocery, and daily needs segment under the Star banner.  The company operates 228 Westside stores and 559 Zudio stores across 178 cities.

The company achieved robust revenue growth in Q1FY25 as the top line increased by 57 per cent Y-o-Y to Rs 3,992 crore. This growth was driven by increased footfalls and strong performance across brands, concepts, categories, and channels, despite subdued market sentiments and heightened competitive intensity.

"Trent's transformation from a single-format (Westside) to a multi-format (Westside, Zudio, Star, Samoh, Utsa, Misbu) and multi-category (fashion and lifestyle, grocery, beauty personal care and fashion accessories) player has led to a higher revenue compound annual growth rate (CAGR) at 36 per cent between FY19 and FY24 compared to India's leading consumer discretionary and retail peers," Citi had said in its coverage initiation report last month.

The global brokerage firm initiated coverage on Trent with a 'buy' rating and a target price of Rs 9,250 on a robust growth outlook.

Shares of Akzo Nobel India, a paints and coatings company that makes Dulux Paints, meanwhile, rallied 8 per cent in the intraday trade to hit a fresh record high of Rs 4,110.25 on a healthy growth outlook.

On October 4, Akzo Nobel India said the company has received communication from Akzo Nobel NV (the Ultimate Holding Company of Akzo Nobel India) that AkzoNobel will begin a portfolio review with initial focus on Deco South Asia.

AkzoNobel is conducting a strategic review of its portfolio in order to redeploy capital towards growing its core coatings businesses.

The initial focus will be on its decorative paints positions in South Asia. AkzoNobel has a premium, highly profitable position in India in particular, with a strong track record of growth. Given this unique market position, the company is well-placed to participate in the further development of the highly dynamic South Asian decorative paints market, which is ripe for consolidation, the company said.

The review will explore various strategic options ranging from partnerships or joint ventures through to mergers or divestments, it added.