WEEKLY TRENDSETTER (JUNE 4TH ,2021)
| 2021 | MAY 29 | JUNE 4 | Ch % |
| NIFTY | 15435 | 15670 | 1.52 |
| BANK NIFTY | 35141 | 35291 | 0.43 |
| USD/INR | 72.49 | 73 | 0.70 |
MARKET REVIEW –A week of consolidation for both indices and towards the close of week banking stocks saw profit-taking after the smart gains registered in the past couple of weeks. Mid -cap and small -caps continued to outperform and with the result season providing fresh cues, bargain hunters were kept busy.
REVIEW OF RESULTS (MARCH QTR)
The result season is slowly coming to an end and focus this week is on some outstanding performance for the March quarter.
Rs in cr, Bracket indicates ch in %
| Company | Revenue | Net profit |
| Polyplex Corpn | 1294(+8.8) | 205(+999) |
| Wheels India | 927(+57) | 25.9(+817) |
| Jindal Saw | 3784(+30) | 187(+532) |
| REC | 8851(+14) | 2073(+339) |
Polyplex Corpn (1149)-The company posted another robust set of numbers though boosted by another income component. The company is the 5th largest company in the world in terms of capacity to produce polyester films. The company’s products are used in packaging food products such as food pouches and healthcare products such as sanitizers, liquid disinfectants and cleaning liquids demand for which has increased exponentially after the Covid-19 pandemic started. Interestingly the promoters who hold 51% stake in the company are looking to sell out for around Rs 1500 cr. Excluding the other income component the company enjoys a P/E of around 15-16.
Wheels India (620)-The company has posted an impressive jump in topline which has boosted profitability. Management commentary is positive on the domestic tractor business as well as growth in export business. The company rolls out wheels for trucks, buses, agri tractors, construction equipment, utility vehicles and passenger cars with manufacturing plants at TN, Maharashtra, UP and Uttarakhand and a combined overall annual capacity of about 10.3 million wheels. Rs 100 cr capex is planned which will go into the wind segment. In addition, the company will be increasing capacity of cast aluminum wheel plant from 3.5 lakh wheels pa to 7.5 lakh wheels pa.
Jindal Saw (112)-The company has seen a sharp fall in interest costs and with improved margins has posted a robust bottomline . The company manufactures pipes which are used in many governments and private projects. The company has been a big beneficiary of government schemes like Jal Se Nal and river joining projects for better water connectivity across the nation. There are also gas pipeline projects to cover the nation for gas distribution. Prospects appear bright in the long run.
REC (152)-The company posted another good quarter show and with an EPS of 40 for the full year looks compelling for investors out on bargain hunting. In May last year, the government had announced a liquidity infusion package of Rs 90,000 cr for discoms, which was increased to Rs 1,35,000 cr later. This is jointly and equally provided by PFC and REC.
MARKET OUTLOOK.
1.The financial pack cooled off towards close of week. However, momentum is likely to pick up next week. NBFC s and metals have seen good buying interest which could continue next week.OMC s HPCL and BPCL could witness buying interest on the back of hefty dividends announced of Rs 22.75 and Rs 58 respectively.
2. Results season is coming to an end and some of the ones to look forward to next week are GAIL, Bectors Food, BEML, Bata among others.
2.The market closed at an all -time high and global cues continue to be good. Rotation in sectors is witnessed. The Nifty could broadly be in a band of 15600-15800 in the coming week.
Some technical cues are as follows going by market trends
Scrips to watch out
NMDC (192)-The scrip saw some spirited buying towards close of week. The coming days could see the recent top of 202 getting breached as the scrip seeks higher levels of 215-220.
Balmer Lawrie (137)-The scrip has been trading in a narrow range and currently enjoys good support at levels of 130-35. The coming days could see buying interest and the scrip could see levels of 155-60.
K.M.SUGAR(19.50)-One of the scrips which is catching up with the buoyant sugar industry. Volumes have increased in the last few weeks and looks to consolidate on its gains in the coming weeks. The scrip could advance to levels of 25.
We are all living in hope that the current Covid situation will pass. Faith in Almighty is the need of the hour to tide over this difficult phase and restore normalcy.
Have a great trading week!
Krish Subramanyam