WEEKLY TRENDSETTER (NOV 24th ,2023
| 2023 | Nov 10 | Nov 17 | Ch % |
| NIFTY | 19425 | 19732 | 1.58 |
| BANK NIFTY | 43820 | 43584 | -0.54 |
| USD/INR | 83.35 | 83.26 | -0.11 |
MARKET REVIEW–The market began the week on a festive high and the rise was broadbased. However, the closing saw some change in mood in the financial sector with both banks and NBFC S reacting to RBI’s measures aimed at some risk compliance measures.
BACK TO RESULTS (Sep qtr.)
The Sept quarter results are trickling in. So far, it has been a decent show. This week let us explore some of them:
Rs in cr, Bracket indicates ch in % against Sep,22 quarter.
| Company | Revenue | Net profit |
| Natco Pharma | 1031(+138) | 369(+547) |
| Everest Inds | 308(-13) | -6(-300) |
| JP Power | 1350(-2) | 69(-8) |
| Bector Food | 386(+18) | 33(+18) |
Natco Pharma (780)-The company saw a jump in topline and profits during the March 23 quarter and the subsequent 2 quarters have been even better. It has already reported Rs 40 EPS for the first 6 months of FY23-24. However, the stock price has not mirrored the performance and upside has been modest in the past 6 months. The company has presence in oncology, cardiology and diabetology segments. It has also entered the agro chemical segment. The export market contributes 80% of the revenue. The stock merits attention and could be considered an interesting pharma bet.
Everest Inds (1185) -The Sept quarter saw a sharp dip in revenue which resulted in margin pressure and an unusual loss for the quarter. The company has a strong presence in roofing, boards & panels, and pre-engineered steel building. With the real estate booming odds are high that the company will stage a strong comeback in the coming post monsoon quarters. The stock price has defied performance and appears to have optimistic investors. At current levels the stock appears well price.
JP Power (14.5) –The stock has been hailed as a penny stock but the performance in the last few quarters could dispel such pessimism. The company operates the largest hydro electric power plant in India. Besides it also operates thermal plants and into power transmission. While prospects look good the upside for the stock appears minimal from current levels.
Bector Food (1327) -The company has a strong presence in biscuits and bakery segments and both have seen a steady growth over the years. In the last 3 quarters the EBIDTA margin has seen a 300-basis improvement which has improved the bottomline. The company has also been gradually adding capacities.2 new lines of biscuits have started in Punjab in the current quarter. Another plant is planned in Dhar (MP) which will be ready by FY24-25. On the bakery front fresh capacity is being added in NCR and the company has also bought land in Khopoli, Mumbai for expansion of bakery business. With high cash from operations and low debt the company is poised to continue the good show. The company could post EPS more than Rs 30 for FY23-24. The stock has been a star performer in the past few months and raced ahead. While at current levels it looks fully priced, on any strong market correction it could be an attractive bet.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY – After a 1000-point rally in the past 3 weeks from the low of 18850 the index could see some cooling off and levels of 18500-600 could see renewed interest.
BANK NIFTY-The index is now facing resistance around 43850 and on the downside levels of 43200 could be expected.
PICKS FOR THE WEEK
Granules (372)-The scrip is on a comeback rally as the sector itself looks poised for an uptrend. Gradual accumulation can be considered for a possible target of 395-400.
Surya Roshni (503)-After touching a high of 600 in Oct the scrip has seen a sharp correction. The broader trend still looks positive. Accumulation can be considered for a possible bounce up to levels of 550.
Wishing a great trading week to all readers!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam