WEEKLY TRENDSETTER (April 28th,2023)
| 2023 | APRIL 14 | APRIL 21 | Ch % |
| NIFTY | 17828 | 17624 | -1.14 |
| BANK NIFTY | 42132 | 42118 | -0.03 |
| USD/INR | 81.84 | 82.10 | 0.32 |
MARKET REVIEW–The week turned out to be a quiet one. However, one notable feature was recovery from intra -day lows on most of the days and also very active buying across sectors in the small cap and mid cap segments which is attracting attention after a severe correction in the last 18 months. Going into expiry next week ,17800 will again be acting as a resistance. The banking pack will be critical for a break past that. On the whole an exciting week ahead!
BACK TO RESULTS (March qtr.)
The March quarter results are getting announced. The small and mid-cap segments are the ones where some interesting results could be looked at. This week let us explore some of them:
Rs in cr, Bracket indicates ch in % against March,22 quarter.
| Company | Revenue | Net profit |
| Oriental Hotels | 111.4(+69) | 18(+999) |
| Accelya Solutions | 119.5(+29) | 36.3(+83) |
| Angel One | 826(+23) | 267(+31) |
| Cyient | 1751(+48) | 163(++5.8) |
Oriental Hotels (84.2)-The company has now had 3 consecutive good quarters. It is part of the Taj group with 7 hotels under its umbrella. The hotel sector is witnessing a boom post Covid with revenge tourism boosting demand for hotels which have seen increase in occupancy. The stock is trading at a P/E of 20 times and looks poised to break past the all -time high price of 88.
Accelya Solutions (1436)-The company has specialized in the air travel domain over the years and has grown inorganically with a string of acquisitions over the years. Its parent company has also changed hands over the years. In 2017 Warburg Pincus took a controlling stake and in 2019 it changed hands and Vista Equity Partners took over. With travel and tourism back to boom time the company has also been posting steady growth in earnings in the past few quarters. The March quarter bottomline was also boosted by an exceptional income of Rs 11.63 cr. With an annual EPS of Rs 82 the stock trades at 18 times .At current levels it looks fairly priced.
Angel One (1222)-The company has come out with a steady growth during the quarter. In the background of fierce competition in the broking industry which is lured by the high potential retail crowd, the performance is noteworthy. With an EPS of 116 for the full year the stock looks fairly priced at current levels. It has seen a steep correction from 2000 plus levels to 1000 before a bounce back.
Cyient (1159)- The company has posted a steady set of numbers and is one of the few stocks which is trading closer to the 52-week high while large caps are breaching 52-week lows. The company has identified three areas of growth -IPP (Integrated products & platforms, DET-Digital Engineering and Technology and Sustainability (Sustainable Infrastructure and Decarbonization). The growth outlook for FY24 also looks encouraging. While revenue is expected to grow by 15-20% EBIT margins are expected to improve by 100-200 bps. At current levels the stock looks fairly priced though around levels of Rs 1000 accumulation could be considered.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY –The index failed to sustain above 17800 as IT proved to be a drag. With expiry due next week support is likely to emerge around 17500. Levels of 17800 could be again tested. The market did see buying at dips and thus a positive bias could continue for next week.
BANK NIFTY-The index was a relative outperformer and going into next week will also factor in ICICI Bank results. While 41600 is likely to provide intermediate support 42500 and above could attract selling. The trend however appears positive.
PICKS FOR THE WEEK-
Lauras Labs (303)-The scrip was a star performer in the 2020-21 period. However, it has slipped sharply and currently trading at extreme oversold conditions. Accumulation could be considered as a rebound could take the scrip past 350.
GMDC (133)-The scrip has been on a long consolidation mode in the band of 120-130.Accumulation could be considered for a possible target of 165-70.
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam