WEEKLY TRENDSETTER (June 17th,2022)
| 2022 | June 3 | June 10 | Ch % |
| NIFTY | 16584 | 16202 | -2.3 |
| BANK NIFTY | 35275 | 34483 | -2.25 |
| USD/INR | 77.61 | 77.85 | 0.31 |
MARKET REVIEW–After 3 weeks rally the bulls finally lost steam and with global markets also in a bearish mode the indices are close to critical levels and the coming week could be challenging for the previous lows touched in 2022.
BACK TO RESULTS (March qtr.)
The March 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’s explore some of them:
Rs in cr, Bracket indicates ch in % against Mar,21 quarter.
| Company | Revenue | Net profit |
| Campus Active | 352(+28) | 39.6(+295) |
| Fine Organic | 617(91) | 122.2(+287) |
| Mirza International | 444.6(+42) | 30.2(+238) |
| Bhagyanagar Inds | 522(+76) | 2.1(0.7) |
Campus Active (325)-It is a recent listing with the IPO coming at 290.The company is India’s largest sports and athleisure footwear brand. It manufactures and distributes a variety of footwear like Running Shoes, Walking Shoes, Casual Shoes, Floaters, Slippers, Flip Flops and Sandals, available in multiple colours, styles and at affordable prices. It sells its products through online platforms and offline stores. The company has a pan-India trade distribution network, with over 400 distributors in 28 states and 625 cities and 8,200 retailers across India. It owns and operates five manufacturing facilities across India with an installed annual capacity for assembly of 25.60 million pairs as of September 30, 2021.The issue price was at a rich premium and though it is listing with some gains, going by the performance and EPS of 1.3 for the quarter some more cooling off could be seen.
Fine Organics (4750)-The company has a global presence in manufacturing additives for plastic, food, rubber, cosmetics & pharma, paints, textiles, etc. After a setback in FY21, the company has bounced back in style with an EPS of 85 for FY22.Exports account for 60% of the revenue. With a depreciating rupee and strong business fundamentals the stock could be an ideal long-term pick for the long term.
Mirza International (252)-The company started as a tannery in the 80s but has grown into India’s leading leather footwear manufacturer and exporter. With a fully integrated facility, the company has a monthly production of 3 million square ft of leather and an annual footwear manufacturing capacity of 6.4 mn pairs. With a Rs 10 eps for FY21-22, the company has entered a strong growth phase. The stock has seen a decent run even as the market has seen a correction. It could see re rating in the quarters to come.
Bhagyanagar Inds (42)-A low profile company which operates on low margins but has seen an impressive surge in topline. The company is a manufacturer of busbars which are used in electric installations. The buoyant power sector has ensured good offtake. Interest costs are high and has been a drag. However, with an EPS of Rs 3, the stock could see buying at lower levels for decent returns.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY-The index failed to close above 16400 and closed at the low point for the week. With weak global cues, it looks poised to test the previous low of 15800 from where it bounced back twice this year. Any breach of 15800 could see the index touch 15400.
BANK NIFTY– The expected breakdown to levels of 34800-35000 did happen and infact the index closed below 34500 with the possibility of breaching 34000 remaining very high. Levels of 35000 should act as a hurdle on any bounce.
SCRIPS TO WATCH OUT
Hindalco (385)-The scrip has seen relentless selling pressure and closed at critical levels of 375-80 which are likely to be breached. Levels of 340-45 could be seen in the coming days.
Bayer India (5188)-The scrip has largely been in a band of 4500-6000 for the past 3 years. However, the scrip broke past the 200-dma at 4900 and attracting buying at lower levels. Long term accumulation could be considered at declines for a possible target of 6500.
Have a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam