WEEKLY TRENDSETTER (FEB 14,2025)
| 2025 | FEB 1 | FEB 7 | Ch % |
| NIFTY | 23482 | 23560 | +0.33 |
| BANK NIFTY | 49507 | 50158 | +1.31 |
| USD/INR | 86.68 | 87.41 | +0.84 |
MARKET REVIEW-The week saw muted response to the Union Budget.The next event was the RBI policy which also announced the expected rate cut of 25 bps.However,no sooner the announcement was made the market again went on a sell mode.Some cheer should come on opening next week with BJP coming back to power in Delhi.
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 |
| Krishana Phoschem | 304(+32) | 21(+425) |
| Zuari Agro | 1264(+49) | 36(+1900) |
| Moschip Tech | 126(+40) | 11(+450) |
| Medplus Health | 177(+19) | 9(+200) |
Krishana Phoschem-(196)-The company is into fertilizer production which has DAP, SSP, secondary nutrients, micro nutrients, supplement and organic products. The Dec quarter has seen an impressive growth in revenue as well as profits. The first 2 quarters also saw steady growth and the company could end up posting EPS in excess of Rs 10 for FY24-25. At current levels it appears to be fairly priced.
Zuari Agro (210)-The company is into a host of fertilizers (urea, DAP and NPK), pesticides and insecticides and also has two subsidiary companies namely Paradeep Phosphates and Mang chemical and Fer. It has shown a whopping 49% growth in revenue and profits have shown a significant growth. For the quarter it has ended up posting EPS of Rs 13. The company could end the year with an EPS in excess of Rs 30. The company has not enjoyed great investor fancy and has also been trading at low P/E of 5-7. It has not participated in the 2020-24 bull run. At current levels it looks attractive and investors could accumulate with an eye to have a presence in the fertilizer industry.
Moschip Tech (197) -The company provides semiconductor design solutions, product engineering solutions and caters to a host of industries like telecommunication, automotive, medical & healthcare, consumer electronics, energy and utility, computer vision, etc. It has seen a steady growth over the years and profits have also been climbing. The Dec quarter has seen a significant jump in profits which is encouraging as the semiconductor industry is in limelight and new capacities are coming up with Govt also providing support for its growth due to the spiraling demand and global constraints. An early entry advantage could prove to be a boon for the company. While valuations look stretched the stock could attract investor attention at lower levels.
Medplus Health (793)-The company provides a digital pharmacy store which covers a wide gamut of services like medicines, diagnostic, providing doctors, etc which has caught fancy of users and investors. Topline has surged from Rs 145 cr in FY22 to Rs 467 cr in FY24.Since the company is primarily a service provider, margins are slender. However, with progress of time this should change as volumes grow. The company has posted an EPS of Rs 3.82 for the quarter. Competition is also looming large in the space. Valuation is high and any entry could be considered at a sharp correction.
NIFTY –The index saw a sharp spike in mid-week. However, these gains wilted under selling pressure and the closing for the week ended with some slender gains.
BANK NIFTY-The index did relatively better. Closer to the 200-dma of 50800 it saw profit booking. It did manage to to show gains of 1.31% for the week.
STOCK PICKS
Chambal Fertilizer (555)-The stock has been on a consolidation phase of 470-570 for the past 12 months. It has witnessed buying at lower levels. It has given bullish signs in the previous week and looks poised to breakout into a new high. Accumulation could be considered for a possible target of 600 in the coming days.
Alembic Limited (112) -The stock has seen a strong correction from levels of 170 to 100 in the past few months and now resting on strong support levels. Accumulation could be considered for possible target of 130 in the coming days.
Wishing all readers a great week ahead!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam