Three stocks that outperformed in the week ending June 16

Sensex and Nifty closed the week ending June 16, 2023, with gains of 1.21 and 1.41 per cent respectively.

All the sectoral indices ended in green for the week gone by except for BSE Bankex which declined 0.4 per cent. BSE Realty gained the most by 3.9 per cent followed by BSE Healthcare 3.7 per cent and BSE Consumer Durables 3.6 per cent.

Within the BSE 500, three stocks which were among top gainers are Kalyan Jewellers (18.6 per cent), HEG (16.5 per cent) and IDFC First bank (14.03 per cent).

While there were other significant gainers as well like Wockhardt Ltd (25.52 per cent), Tanla platforms (18.73 per cent) and Brightcom group (27.47 per cent), there was no reportable news in their case and their gains appear to be driven by speculative frenzy.

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Kalyan Jewellers

The stock gained close to 15 per cent on June 16, 2023 when it zoomed to the level of ₹131.1. The stock has gained 16 per cent in the past one month. The stock saw six block deals on June 16, 2023 involving 6.4 crore shares and post this the stock price rose.

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On June 15, 2023, the company also informed the stock exchange that it has re-appointed TS Anantharaman as Non-Executive Independent Director for a term of three years with effect from December 15, 2023, subject to the approval of the shareholders of the company.

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The trailing PE of the stock is 31.18 times whereas the trailing price to book ratio is 3.72.

HEG

The stock of graphite electrodes manufacturing company HEG Ltd gained 16 per cent in the last week on the back of single day gain of around 16 per cent on Thursday’s session. The rally was seen in the stock after a broking firm InCred Equities initiated coverage on the stock on the positive note.

InCred believes that HEG is well-placed to benefit from the global decarbonisation trend. As per the report, the company is foraying into the production of anodes used in lithium-ion batteries which are further used in electric vehicles.

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Further, a decline in inventory levels at US steel mills can bring a rise in its electrode volumes, the brokerage firm says. Hence, these can be the catalysts for HEG’s growth in the near future, as per InCred.

The stock currently trades at a trailing P/E of 11.5 times.

IDFC First Bank

The stock of private sector lender IDFC First Bank zoomed around 14 per cent in the last week on account of positive outlook given by Emkay Alternative and Quantitave Research.

Emkay believes that the company has a good chance of entering the MSCI (Morgan Stanley Capital International) India Index on account of stable outlook.

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The global index aggregator MSCI Inc shall come out with a quarterly review of index on August 10, 2023 while if there are any changes pertaining to the index, it will be reflected from September 1, 2023.

Also, recently CRISIL ratings recently upgraded its rating on its tier II bonds from AA to AA+ driven by steady scale up of business and improved asset quality. The stock currently trades at a trailing P/B of 2.09 times.

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