WEEKLY TRENDSETTER (FEB 25th,2023)
| 2022 | FEB 10 | FEB 17 | Ch % |
| NIFTY | 17856 | 17944 | 0.49 |
| BANK NIFTY | 41559 | 41131 | -1.03 |
| USD/INR | 82.51 | 82.82 | 0.38 |
MARKET REVIEW–The week was mixed as it began on a recovery mode and then showed strength and finally succumbing to profit-taking which shaved off part of the gains.The banking counters were distinctly weak going into monthly expiry next week.
BACK TO RESULTS (Dec qtr.)
The Dec quarter results are getting announced. The small and mid-cap segments are the ones where some interesting results could be looked at. This week let us explore some of them:
Rs in cr, Bracket indicates ch in % against Dec,21 quarter.
| Company | Revenue | Net profit |
| Rategain Travel | 138(+40) | 13.2(+999) |
| Kamat Hotel | 83.8(+63) | 27.6(+999) |
| Tilaknagar Inds | 675(+34) | 76(+640) |
| Mold Tek Tech | 40.7(+71) | 9.2(+452) |
Rategain Travel (372)-A new kid which got listed on the bourses in Jan, 22 has made rapid strides in terms of revenue and bottomline in the last 5 quarters and thus also increasing expectations in the quarters to come. The company is a leading processor of hotel bookings, pricing intelligence and customer travel -intent, which enables travel and hospitality companies to accelerate revenue generation through acquisition, retention and wallet share expansion. The stock price is clearly discounting the exciting prospects the space offers. At the current market price, the stock looks well priced and could continue to attract profit -taking.
Kamat Hotel (121)-The company has shown all round improvement in performance. While the buoyant hotel sector has boosted revenue, the strong travel demand has ensured improved realisations which has boosted margins and the company also utilised an exceptional gain to retire large part of the debt which has in turn reduced interest costs considerably. With tourism gaining strength post Covid the trend could be expected to continue. The stock could attract buying at lower levels of around 100-110.
Tilaknagar Inds(114) -The company is primarily a brandy company (94% of revenue)with 86% of the revenue coming from South India. It has manufacturing units spread over 12 states with 4 owned by the company and 16 units on contract manufacturing. The company has been steadily decreasing its debt over the years and aims to be debt free by FY24.With interest costs coming down and well-established brands, the company could be expected to consolidate on its gains over the years. At the current market price, it looks a little stretched but at sub 100 levels it could attract investor attention.
MoldTek Tech (212)-The company manufactures injection moulded containers for lubes, paints,food and other products. It has 7 processing plants with a capacity of 20000 tpa. The packaging products comprise of sanitized containers, dispensing pumps, food containers, paint packaging, lubricants package and bulk packaging. The company has been a consistent performer over the years though some level of stagnation is seen in the last few years with respect to the topline. The current year could see EPS of around Rs 8. At current levels the stock looks well priced.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY –The continues to be in a range of 17800-18200 though last week’s moves seem to suggest that the bias is positive. The coming week could see a decisive move which will set the tone for a long March series.
BANK NIFTY-The index saw a swift retracement from near 42000 levels and lost nearly 1000 points which does not auger well for bulls. Any upside could be capped at 41600-700 and on the downside levels of 39500 could be visited.
PICKS FOR THE WEEK-
Axis Bank (855)-The stock has been exhibiting weakness and looks heading for levels of 800 in the coming week. Levels of 870 have seen good resistance and selling could be initiated around those levels.
Coal India (217)-The stock has been trading near its 200-dma for the past few days. Going into expiry short covering could be expected and the stock could head to levels of 230.
Wishing all readers, a great week in the markets!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam