WEEKLY TRENDSETTER (AUGUST 30,2024)
| 2024 | AUG 16 | AUG 23 | Ch % |
| NIFTY | 24541 | 24823 | +1.10 |
| BANK NIFTY | 50517 | 50933 | +0.93 |
| USD/INR | 83.95 | 83.90 | -0.02 |
MARKET REVIEW-The week saw steady gains on all days and finally the closing gave hopes of the 25000 level again getting conquered early next week. Banking counters also looked steady which is a welcome relief after some shaky sessions earlier.
BACK TO RESULT SEASON
June quarter results are trickling in. Let’s explore some of them to get cues of where the stocks could be heading.
Rs in cr, Bracket indicates ch in % against June,23 quarter.
| Company | Revenue | Net profit |
| Jyoti CNC | 310(+73) | 41(+2150) |
| TBO Tek | 418(+21) | 62(+27) |
| Zaggle Prepaid | 252(+113) | 17(+750) |
| MCX | 234(+60) | 111(+428) |
Jyoti CNC (1264)-The company is one of the largest CNC machine manufacturers of India. The word CNC is defined as a manufacturing method that automates the control, movement and precision of machine tools through the use of preprogrammed computer software, which is embedded inside the tools. The company has customers across diverse set of industries including Aerospace and Defence, Automobile and Auto components, Agriculture, Die & Mould, Electronic Manufacturing Services (EMS), Infrastructure, Healthcare, Oil and Gas, Power, Railways, Space Research and other General Engineering industries. It had come out with an IPO few months back at Rs 331. With a resounding listing the stock soared to four figures with interest from DII and FII.The company has shown an EBIDTA margin of 25% for the quarter and EPS of Rs 2.25. At current levels the stock looks well priced.
TBO Tek (1723) -The company came out with an IPO few months back. It is a travel distribution platform which enables sellers to show and market their inventory and set prices for buyers. For buyers, the platform is an integrated, multi-currency, and multi-lingual, one-stop solution that helps them discover and book travel to destinations around the world, across various travel segments such as leisure, business and religious travel. The issue came at Rs 920 per share and after a strong listing it has sustained investor interest. The June quarter results reflect a steady show with an EPS of Rs 5.85. At current levels the stock looks well priced. Investor interest is high in the scrip and thus lower levels of around 1500 could see buying interest emerging.
Zaggle Prepaid (368)-The company provides financial technology (fintech) products and services to manage corporate business expenses through automated and innovative workflows. It has several platforms like Propel, Save, CEMS, Payroll card, Zoyer, etc. The company has a set of clients like Tata Steel, Persistent Systems, Inox, Pitney Bowes, Wockhart and a host of similar high-profile clientele. Revenue has doubled in 12 months and profits have gone up 8 times from Rs 2.06 cr to 16.72 cr. While potential for growth is there, the stock price looks steep. Levels of around 250-275 would be reasonable. Clearly a company to watch out.
MCX (4863)-The leading platform exchange has come out with a resounding set of numbers which could be the beginning of a strong resurgence in the company which has had a mixed fortune in the last few quarters. The boost has come from options volume which has surged from Rs Rs 180 cr to 2370 cr in the last 3 years. The growth triggers have been largely due to the launch of mini base metals and energy products, electricity & coal platforms, etc. The company posted an EPS of 22 for the quarter. This is on the back of a Rs 17 EPS for the March quarter. The stock has soared to an all-time high. However, with a niche business and platforms in place, the company looks heading for better times. Lower levels could be used for accumulation.
NIFTY –The index rose for the 6th day in succession and now close to go past 25000 early next week. Levels of 24700-800 should act as a decent support.
BANK NIFTY-The index has defended 50000 level successfully in the last 3 weeks of trading. Thus 50000 is a critical support for the coming week while levels of 51800-52000 could act as resistance points.
PICKS FOR THE WEEK
Associated Alcohol (897)-The stock has been on a high for the last few weeks with the sector also in a buzzing mode. The stock is ideal for investment as volumes are muted. Accumulation could be considered for possible levels of 1200 in the coming weeks.
Indus Towers (434)-The stock has seen buying at every dip and levels of 420-25 now appear to be decent support for the short term. With monthly expiry next week, the stock could see short covering and levels of 465 which is its all – time high, could be surpassed.
Wishing all readers, a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam