WEEKLY TRENDSETTER (FEB 28,2025)
| 2025 | FEB 14 | FEB 21 | Ch % |
| NIFTY | 22929 | 22796 | -0.58 |
| BANK NIFTY | 49099 | 48981 | -0.24 |
| USD/INR | 86.79 | 86.71 | -0.09 |
MARKET REVIEW-The week began with a sharp bounce back raising hopes of a recovery. However closer to 23000 the rally fizzled out. By close of the week Nifty slipped below the critical 22800.Odds are high that the index could slip below 22600.
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 |
| Deepak Fert | 2579(+39) | 253(+314) |
| Tata Comm | 5798(+2) | 224(+460) |
| APS Ltd | 121(+227) | 11(+450) |
| TRF | 23(-20) | 11(+1000) |
Deepak Fert (1069)-The company is a leading fertilizer and chemical company with 3 segments -Industrial Chemical (IC), Mining business (TAN) and crop nutrition business (CNB). There are several products in which the company has a strong presence -it is the only manufacturer of Solid TAN (Technical Ammoniam Nitrate) used in mining, infra and explosives companies. It is the largest manufacturer of Nitric Acid in S.E. Asia and one of the major players in Iso Propyl Alcohol (IPA). In crop nutrition it has a strong brand in Mahadhan.It is the largest manufacturer of Bentonite Sulphur in India. It also has a strong presence in specialty and watersoluble fertilizers. The company has posted a strong set of numbers for the Dec quarter. With an EPS of 19.8 for the quarter, it has posted EPS of Rs 50 for the 9-month of FY24-25. The scrip is an investment candidate at lower levels.
Tata Comm (1451) -The company has a strong presence in the telecom with offerings like network, unified communications, cloud, cyber security, carrier services, content delivery network, etc. It came out with good numbers for the Dec quarter posting an EPS of Rs 8.3. With an expected EPS of Rs 35-40 for FY24-25, the stock is a decent bet for presence in a growing sector. Levels of around 1200 offers good support.
APS Limited (425)- The company is one of the leading manufacturers in India’s solar energy industry focusing on residential, commercial and agricultural segments. Its products are solar panels, grid tied inverters and solar water pumps. It has shown good all-round growth in the Dec quarter. With an EPS of Rs 5.78 for the quarter, volume growth will be the key for the future as margins are reasonable. The stock got listed 2 years back and is witnessing profit -taking. It should ideally keep under the radar.
TRF (353)-This material handling company from the Tatas is on a slow and steady revival. It was originally to be merged with Tata Steel. However, the improvement in performance resulted in a change of decision. In terms of revenue the growth has been disappointing though the management is optimistic about improvement in capacity utilization. Compared to its peers the performance is still lacking the potential it has since it hails from a strong promoter group. The company has posted an EPS of Rs 10.2 for the Dec quarter. A strong growth in revenue could be the key to better investor sentiment. The stock has potential and lower levels of around 300 could be considered for accumulation.
NIFTY –The index was trading in the band of 22800-23000 for most part of the week. However, the support finally broke and the coming week could see the index slipping to 22600 .22900-23000 now could prove to be a hurdle.
BANK NIFTY-The index also saw weakness creeping in and by close of week had slipped below 49000.The index has been trading in a band of 48000-49800.A breach below 48000 could see the index touching levels of 45500-46000.
STOCK PICKS
SAIL – (112.75)- The scrip was an outperformer along with other metal stocks in a weak market. However, this could be a counter rally in an otherwise strong downtrend. Levels of 115 and above should provide stiff resistance and accordingly selling could be considered for a possible target of 105 in the coming days.
Wishing all readers a great week ahead!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam