WEEKLY TRENDSETTER (FEB 7,2025)
| 2025 | JAN 24 | FEB 1 | Ch % |
| NIFTY | 23092 | 23482 | +1.69 |
| BANK NIFTY | 48367 | 49507 | +2.36 |
| USD/INR | 86.16 | 86.68 | +0.60 |
MARKET REVIEW-The week was an eventful one with the corporate results in full steam, derivative expiry and finally ending with the Union Budget. While the market saw short covering heading into expiry the volatility on the budget day overshadowed the preceding days and coming week will be critical as the market still digests the contours of the budget.
BACK TO RESULT SEASON
Dec 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 Dec,23 quarter.
| Company | Revenue | Net profit |
| Inox Wind | 911(+81) | 112(+5500) |
| Syrma SGS | 514(+27) | 29(+2800) |
| Blue Jet Healthcare | 318(+90) | 99(+209) |
| SIS | 3363(+9) | 95(+216) |
Inox Wind (172)- The company is one of India`s leading wind power solutions providers with manufacturing plants near Ahmadabad (Gujarat) for Blades & Towers and at Una (Himachal Pradesh) for Hubs & Nacelles. They manufacture WTG (wind turbine generators) and provide turnkey solutions by supplying WTGs and offering services including wind resource assessment, site acquisition, infrastructure development, erection and commissioning, and also long- term operations and maintenance of wind power projects. They also manufacture the key components in-house to ensure high quality, advanced technology, reliability and cost competitiveness. The company has a strong order book supply of equipment (1202 MW) and turnkey projects (2088 MW). It has posted EPS of Rs 0.89 for the quarter which is on an expanded base capital of Rs 1303 cr post a generous 4:1 bonus in March 24. While long term potential of the company is bright the stock price looks stretched. Levels of 125-40 would be ideal for entry.
Syrma SGS (532)-An electronics player, the company had an early entry into the segment and has shown steady growth over the years. The company has an interesting client profile in auto, consumer, healthcare, industrials, IT and railway segments. It plans to focus on brake controllers and signaling equipment in the railways segment which holds promise the industrial segment is driven by smart metering, data center power supplies, industrial cleaning, renewable energy, etc. New client additions and a high-volume order for interface cards are expected to boost growth in FY25 and FY26. Exports: domestic contribution stood at 20%. The key to profitability is its margins which stood at 6.3% in FY24 and there is headroom for upsides. Due to its presence in a high growth industry which is also backed by the Govt PLI schemes, potential for growth is likely to accelerate. An EPS of Rs 9-10 is likely for FY25.While valuation looks stretched, lower levels should attract investor appetite.
Blue Jet (757)-The company is a recent entrant into the secondary market. It manufactures contrast media intermediaries and saccharin (artificial sweetener), niche pharma ingredients &APIs and CDMO-CMO. It has posted one of its best quarters with surge in revenue and profitability. EBIDTA margins stood at 39% as compared to 33% in the corresponding previous quarter. Going ahead the company is expected to see strong growth in pharma ingredients and APIs.Revenue from this segment has surged from Rs 27.5 cr to Rs 146.7 cr. Till last year the major revenue contributor (70%+) was the contrast media intermediates. With an EPS of Rs 5.7 for the quarter it should end the year with an EPS of 18-20. It should attract attention in a market correction.
SIS (337)-The company is into security solution, facility management solution and cash logistics solution. The business is a high-volume low margin business with high business potential in all verticals. While revenue surged almost 50% from Rs 8485 cr in FY20 to Rs 12261 cr in FY24, profitability has dipped sharply but EPS for FY24 still stands at Rs 24. Promoters hold 72% of the capital followed by FII s (13.1%), DII (5.25%) leaving just under 10% with the public. With an EPS of Rs 7 for the quarter, it has seen the best quarter in the current financial year. It could end the year with EPS of Rs 23-25. At current levels the stock looks attractive.
NIFTY –The index again managed to close above 23000 for the week. It has formed an engulfing bullish candle. The true reaction to the Union Budget will be reflected next week and the low of 22800 will be critical. Upside could around 24000 which is the 200 dam and also a cluster of resistances.
BANK NIFTY-The index could see levels of 50800 being the 200-dma. Last week ‘s low of 47845 will be critical.
STOCK PICKS
ADF Foods (285)-The stock has been one of the outperformers in the last few months and lower levels have witnessed buying. Levels of 270-75 should be ideal for entry for a possible price target of Rs 300
Jyoti Lab (416)-The stock has seen a strong correction from 595 to 356 where strong support exists. Buying can be considered for possible target of 440-450 in the coming days.
Wishing all readers a great week ahead!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam