Indian stock market indices extended gains on Wednesday, September 23, with SENSEX rising 420 points to 74,949 and NIFTY50 advancing 127 points to 23,456 as of 12:14 pm IST. According to market reports, the SENSEX touched an intraday high of 23,467 points led by gains in index heavyweights including Larsen & Toubro, Bajaj Finance, Reliance Industries, Tata Steel, HDFC Bank, ITC and Bharti Airtel. Investor sentiment remained upbeat tracking a drop in crude oil prices below $100 per barrel on expectations of diplomatic solution to the US-Iran war through talks at the UN in New York. Meanwhile, Saudi Arabia began restoring crude supply on a critical pipeline to the Red Sea, with Brent Crude futures falling nearly 1% to $98.27 per barrel.
Several stocks witnessed significant volume spikes during Wednesday's trading session, with Elecon Engineering leading gains at 20% to hit its upper circuit at ₹708.90 per share compared to ₹590.75 at the previous close. As reported by market data, trading volumes surged 101.6 times to 2.02 crore shares compared to the average weekly volume of 1.99 lakh shares on NSE, while BSE volumes jumped 5.4 times to 27.32 lakh shares versus the average of 5.01 lakh shares. Transrail Lighting rallied 17% to touch an intraday high of ₹485 versus ₹414.20 at the previous close, with volumes jumping 53 times to 1.69 crore shares compared to the average of 3,19,673 shares. Pace Digitek jumped over 13% to reach an intraday high of ₹175.37 from ₹154.86 at the previous close, driven by a ₹488 crore BESS order secured from NTPC GE Power Services Private Limited.
Pace Digitek surged over 13% to reach an intraday high of ₹175.37 from ₹154.86 at the previous close, driven by a ₹488 crore BESS order secured from NTPC GE Power Services Private Limited. According to exchange data, trading volumes surged 39.23 times to 2.05 crore shares compared to the average weekly volume of 5,22,987 shares. Jain Resource Recycling jumped 10% to ₹299.80 after the company's board approved issuing an additional corporate guarantee of up to ₹50 crore to ICICI Bank for its subsidiary.
Elecon Engineering shares surged nearly 12% in Wednesday's trade, taking their six-month gain above 20% and extending the stock's recent rally. The stock rose to ₹476.90 per share on Wednesday, hitting an intraday high after opening at ₹420.55, with the stock having already reached its 52-week high of ₹628.15 on Tuesday. As per market reports, the stock has delivered exceptional long-term returns, gaining 31.5% in the past three years and delivering a multibagger return of around 449% over five years. The stock currently has a market cap of ₹10,632 crore and is trading at a price-to-earnings multiple of 39.9 times. Elecon Engineering's 52-week high stands at ₹628.15, while its 52-week low is ₹352.00. The stock has shown strong near-term recovery, gaining 12.46% in the past week and 1.45% over the past month, though it declined 4.70% year-to-date and is down 24.33% over the past one year.
Elecon Engineering reported mixed Q1FY25 results with revenue declining 5.3% year-on-year to ₹392 crore compared with ₹414 crore in the corresponding quarter of the previous fiscal year. According to the company's latest financial data, PAT remained unchanged at ₹73 crore year-on-year, though it declined 30% sequentially from the March quarter. EBITDA fell 7.6% to ₹92 crore in the June quarter, from ₹100 crore in Q1FY24, with the EBITDA margin contracting by 60 basis points to 23.5% in Q1FY25, compared with 24.1% a year earlier. Revenue from the core gear division stood at ₹334 crore, down from ₹361 crore in the year-ago period, attributed to weaker order inflows affected by general elections. However, the material handling equipment (MHE) segment reported revenue of ₹58 crore, up 9% from ₹54 crore in the same period last year, with the company's continued focus on product supply and aftermarket business resulting in significant turnaround in profitability.
Elecon Engineering remains on track to achieve its target of generating 50% of its revenue from overseas markets by 2029-30, with international business contributing approximately 34% to overall consolidated revenues in Q1FY25. As reported by the company, with strong endorsements from existing OEMs and ongoing brand-building efforts, management is confident in reaching this ambitious target. The company's continued focus on international expansion and brand-building initiatives is expected to drive future growth in overseas markets. Prayasvin B Patel, chairman and managing director of Elecon Engineering, stated that with strong endorsements from existing OEMs and ongoing brand-building and marketing efforts, the company is confident in reaching this ambitious target.
