WEEKLY TRENDSETTER (MAY 1ST ,2021)
| 2021 | APRIL 23 | APRIL 30 | Ch % |
| NIFTY | 14341 | 14631 | 2.02 |
| BANK NIFTY | 31722 | 32782 | 3.34 |
| USD/INR | 75.04 | 74.06 | -1.3 |
MARKET REVIEW –The week started on a positive note and for 3 days the market saw a sharp short covering rally and Nifty even nudged past 15000! However, the temptation to book profits returned and by close of week the index was close to 14600.
REVIEW OF RESULTS (MARCH QTR)
With the result season getting into high gear, focus this week is on some outstanding performance for the March quarter.
Rs in cr, Bracket indicates ch in %
| Company | Revenue | Net profit |
| Dalmia Bharat | 3281(+32) | 640(+999) |
| GatewayDis (GDL) | 350(+17) | 46.4(+317) |
| Laurus Labs | 1412(+68) | 297(+170) |
| Rain Inds | 3007(+4) | 231(+103) |
Dalmia Bharat-Riding on the back of rising cement prices, the company posted stellar numbers. In another positive development the SC directed that Rs 344 cr worth of units be restored to the company which was earlier stolen by Allied Financial Services Ltd. The company will soon be announcing its next round of expansions (10-15mn MT), which would be commissioned over the next 3-5 years which is expected to be funded largely through internal accruals. With Rs 65 Rs EPS for FY21, the stock looks a good bet for the long run.
Gateway Distriparks is the only logistics facilitator in India with three verticals which are synergetic and capable of being interlinked – container freight stations (CFS), inland container depots (ICD) with rail movement of containers to major maritime ports, and cold chain storage and logistics. While capacities have been created over the years, the fruits of the same are being reaped now. There has also been a reduction in interest costs which has aided bottomline. Any resurgence in industrial activity post Covid should see the company flourishing.
Laurus Labs-The company has been one of the stars of FY20-21 and March qtr saw another strong set of numbers. The management commentary suggested that EBIDTA margins would be over 30%. The company looks to invest Rs 1500-1700 cr to augment capacities into infrastructure over the next 2-3 years. Some concerns on the raw material front were also hinted over the surge in prices.
Rain Industries – The company is a vertically integrated global producer of a diversified portfolio of products that are essential raw materials. It operates in three business segments: Carbon, Advanced Materials and Cement. Around 63% revenue is derived from Carbon and the balance from the rest. While the top line has been flat improved product prices have ensured higher margins and higher profits.
MARKET OUTLOOK.
1.The market did take heart from the ICICI Bank results which was the primary trigger for the market to rally. The weekend provided some more cheer from Indus Ind Bank and Reliance which posted a decent set of numbers. The April GST collections were at a record high of Rs 1.41 lac cr. On the flip side Tata Motors has seen a steep 61% drop in automobile sales in April compared to the previous month. Maruti Suzuki saw a 4% dip in sales.
2.Major results for next week are Tata Chemicals,Kotak Bank,SBI Life, Tata Steel,LT Info, Tata Consumer,Hero Moto,HDFC among several others.
2.Technically,Nifty is back to the critical levels of 14600 .The broader market has been fairly strong and several counters are making decent gains .
Some technical cues are as follows going by market trends
The market has a new trigger for next week and that is the outcome of Assembly elections in Bengal ,T.N.,Kerala and Assam. Bengal is the key to sentiments as BJP has managed to make significant inroads into the vote bank. If it translates into a win, a major bastion would have been broken. Any uptrend will again provide opportunity to book profits at 14800-900. On the lower side 14250-300 should see support emerging.
Scrips to watch out
Aegis Logistics (304) –The scrip has quietly scaled to an all time high recently before a correction set in. After taking good support at around 280, the scrip now looks poised to scale past the previous peak. While short term target is 360, investors with a longer horizon could see prices past 400.
Finolex Inds (151) –The scrip recently saw a stock split which also seems to have triggered investor appetite. After steady accumulation at around 130-40, the scrip now looks poised to touch levels of 180. Long term investors could see prices of 220.
Rajashree Sugar (20.65)-Sugar stocks have been on strong footing. While the leading ones have already seen decent gains, the 2nd rung stocks now look poised for a serious run. This scrip could see levels of 28-30.
Health is wealth in these trying times. While this too shall pass, till then take care as the future is ours, if we ride through this present turmoil!
Have a great trading week!
Krish Subramanyam