WEEKLY TRENDSETTER (NOV 22,2024)
| 2024 | NOV 8 | NOV 15 | Ch % |
| NIFTY | 24148 | 23532 | -2.55 |
| BANK NIFTY | 51561 | 50179 | -2.68 |
| USD/INR | 84.38 | 84.41 | +0.04 |
MARKET REVIEW-The week turned out to be a party for bears for all sessions and the Nifty closed just below the 200-dma. Global cues have turned mixed and the coming week could see further cuts and 23000 could well be tested.
BACK TO RESULT SEASON
Sept quarter results are almost getting over. Let’s explore some of them to get cues of where the stocks could be heading.
Rs in cr, Bracket indicates ch in % against Sept,23 quarter.
| Company | Revenue | Net profit |
| Excel Inds | 269(+35) | 36(+1700) |
| Oriental Aromatic | 237(+4) | 15(+650) |
| Medi Assist | 181(+12) | 21(+320) |
| Jyoti CNC | 376(+42) | 70(+268) |
Excel Inds (1655)-The company has presence in agrochemicals and pesticides over the years where it is an established player. However, it has made an interesting foray into the environmental and biotechnology sectors, where it has developed novel solutions for waste management. It is a premier manufacturer of Specialty Polymer Additives and high-quality Veterinary APIs. It also plans to apply its chemical process knowhow in the pharmaceutical intermediates industry while continuing its leadership position in agrochemical intermediates and phosphorous derivatives.
The company reported a bumper Sept quarter with an EPS of Rs 28. In the June quarter also, the company managed to post EPS of Rs 25. The foray into waste management offers a huge opportunity and with a management expertise in related fields the company could be heading for even better times. Valuation is attractive. Any dip could be utilized for gradual accumulation.
Oriental Aromatics (545) -The company is one of the largest manufacturers of a variety of Aroma Chemicals, Camphor, Fragrances and Flavours. OAL’s custom designed fragrances are found in fine fragrances, incense sticks, candles, and various FMCG products like soaps, shampoos, hair oils, detergents, etc. and it also provides flavours for ice-creams, bakeries, confectionaries, beverages, chewing gums, chocolates etc. A hydrogenation plant, a brownfield project at Vadodara, was successfully commissioned and commercial production commenced on 30th July, 2024. Capital investment program on the greenfield project in Mahad, Maharashtra has reached an advanced stage of commissioning and is expected to start contributing towards topline from the 2nd half of FY 24-25. The Sept quarter saw another robust performance on the back of a good June quarter. With the Mahad plant expected to contribute in the 2nd half outlook looks good. At current levels the stock is an accumulation candidate at declines.
Medi Assist (600) –The company is a 3rd party administrator in hospital services and has had presence for more than a decade during which it has grown from strength to strength. Topline doubled from Rs 322 cr to Rs 634 cr in the 2021-24 period and profits also increased from Rs 38 cr to Rs 71 cr during the period. It has acquired 100% stake in Paramount Health Services & Insurance TPA which also is an established player. While at current levels the stock looks stretched, considering the track record it is an interesting bet at sharp declines in the market.
Jyoti CNC (1111) –The company is one of the largest CNC machine tool manufacturers in India. It has a widespread product basket containing series of CNC machines. Which go into manufacture of aerospace parts, electronic components-vehicle AI and advanced tools for metal cutting. It has an installation base of more than 1.3 lac machines across 60+ countries It recently got listed and had a bumper listing. While the company has an impressive track record current levels look highly stretched and could attract profit -taking.
NIFTY –The index has seen a steady slide and all uptrends are failing to sustain. With it slipping to the 200-dma, in the near term some support could be seen though levels of 23800-900 could be resistance areas. Lower levels of 23000 could be tested in the coming days.
BANK NIFTY-The index was a relative out -performer. However, it has also been steadily slipping and could see a slide upto 49500 in the coming days while any recovery could face resistance at around 50700.
STOCK PICKS
L&T (3527) -The stock saw a sharp spike post results from 3400 to 3650.However, it has been unable to sustain at higher levels and is close to breaching 3500. Selling could be considered for a possible target of 3350 in the coming days.
LIC Hsg Fin (608)-The stock has been making lower tops and lower bottoms consistently in the last few weeks. Selling could be considered for a possible target of 580 in the coming days.
Wishing all readers great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam