WEEKLY TRENDSETTER (June 7,2024)
| 2024 | MAY 24 | MAY 31 | Ch % |
| NIFTY | 22957 | 22530 | -1.86 |
| BANK NIFTY | 48971 | 48984 | 0.03 |
| USD/INR | 83.11 | 83.48 | 0.45 |
MARKET REVIEW-The week was largely mixed to negative as global cues were not supportive. However, the coming week could be a different story as sentiments will be largely driven by election results which going into the week looks positive as the BJP led Govt looks like coming back to power for a 3rd successive term.
BACK TO RESULT SEASON
March quarter results are in full steam. Let’s explore some of them to get cues of where the stocks could be heading
Rs in cr, Bracket indicates ch in % against March,23 quarter.
| Company | Revenue | Net profit |
| Balmer Lawrie | 577(-5) | 25(+144) |
| Gensol Engn | 399(+143) | 20(+185) |
| Rattan Power | 914(+1) | 10666(+2308) |
| TBO Tek | 369(+31) | 46.63(+74) |
Balmer Lawrie (271)-The company has a very interesting mix of businesses -Manufacturing comprising of industrial packaging, greases, lubricants and chemicals & Services -comprising of travel and vacations and logistics. The services segments have been the chief profit contributers in excess of 55% and both promise to be having strong growth triggers going ahead. There have been periodic rumours of demerger plans over the years and that should provide a lucrative valuable unlocking for shareholders. At current levels of 271 the stock is trading at a reasonable PE of 12 and with a liberal dividend track record, it is an attractive bet.
Gensol Engn (918)-The company is among the leading solar EPC firms and into manufacturing and leasing of EV solutions. It has made rapid strides in the last 4 quarters with topline doubling and bottom-line more than tripling. The next 5 years is expected to see rapid increase in installed capacity and the company is expected to ride this wave. With Rs 30 EPS for FY24 the company looks relatively expensive but with future prospects being bright, lower levels should see investor buying.
Rattan Power (19.9) -The stock has been on a tearaway rally and has doubled in the past 2 months. It is one of India’s largest private power generation companies, with installed capacity of 2,700 MW thermal power plants at Amravati and Nashik (1,350 MW at each location) in Maharashtra with investments of Rs. 18,615 cr. The March quarter saw an exceptional gain of Rs 10665 cr which boosted the bottomline into black. The stock is on a strong momentum and levels of 23-25 could be expected.
TBO Tek (1408)-A recent listing, the company is one of the leading travel and distribution platforms having presence in over 100 countries and offering major travel related services under one roof. It simplifies the business of travel for suppliers such as hotels, airlines, car rentals, transfers, cruises, insurance, rail and others. In the 3-year period 2021-24 revenue has seen a surge of 10 times to 1392 cr. The 2021 year was a washout due to Covid but still the growth looks impressive. The entire travel and tourism segment has been robust and the stock provides a proxy for presence in the segment. Post listing the stock is still trading at a premium of 60% and some cooling off could be expected. Levels of 1200-250 should be ideal for entry.
NIFTY – The index was largely weighed down by weak global markets. Some short covering ensured paring of the losses. The coming week should begin with an entirely different sentiment as election results will be out.23110 should be the immediate target followed by 23300.On the lower side 22400 should act as a decent support. Mid-week could be tricky as some profit-taking could creep in on any sharp upside.
BANK NIFTY-The index performed relatively better. We could see follow up buying as the private banks appear to have bottomed out. Levels closer to 50000 and beyond is likely for the week. Support should ideally emerge around 49000.
PICKS FOR THE WEEK
BEML (4392)-The stock has seen a strong breakout and looks heading for higher levels. Levels of 4000-4100 should act as a decent support level and coming weeks could see the stock crossing 4500.
CONCOR (1078)-The stock saw a strong breakout and after touching levels of 1124 has cooled down. Lower levels of 1000-1050 should provide good support and levels of 1250 should be seen in the coming weeks.
Wishing all readers, a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam