Upper circuit stock: Ramky Infra gains nearly 10 per cent, trades at new 52-week high

On Wednesday, the stock gained nearly 10 per cent and also, made a fresh 52-week high. In a one-year period, the stock has increased by over 219 per cent.  

Ramky Infrastructure Ltd is buzzing on the bourses by recording gains of more than 34 per cent in less than a week. Trading at Rs 116.95 per share, the stock got locked in the upper circuit for two consecutive trading sessions. On Wednesday, the stock gained nearly 10 per cent and also, made a fresh 52-week high. In a one-year period, the stock has increased by over 219 per cent.  

There is a school of thought that believes that high-debt companies may outperform in the current market condition for two reasons. Firstly, they have not participated in the rally and secondly, their debt servicing capacity has improved due to low-interest rates and surplus liquidity in the system. 

Ramky Infrastructure is bound to benefit from low-interest-rate environment and with its annuity income and cash receivables, it can be a debt-free company in the coming years. Besides, the impetus on the infra sector by the current government offers huge scope for fresh orders for the company. Infra companies with strong balance sheets and cash flows can be expected to outperform. 

Meanwhile, Sensex was up by nearly 80 points at the time of filing this report i.e. at 11.35 am on Wednesday.