WEEKLY TRENDSETTER (MARCH 3RD,2023)
| 2023 | FEB 17 | FEB 24 | Ch % |
| NIFTY | 17944 | 17465 | -2.67 |
| BANK NIFTY | 41131 | 39909 | -2.97 |
| USD/INR | 82.82 | 82.75 | -0.08 |
MARKET REVIEW–The week was a harsh one for bulls as the indices lost ground on all days and the closing suggests that 200-dma could be visited early next week which stands at 17370 and 39216 for the Nifty and Bank Nifty respectively.
BACK TO RESULTS (Dec qtr.)
The Dec quarter results are almost over. 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 |
| Banco Products | 509(+26) | 98.2(+474) |
| WPIL | 507(+106) | 83.7(+466) |
| Lumax Inds | 579(+33) | 18.4(+369) |
| HSCL | 1037(+34) | 65.2(+168) |
Banco Products (228)-The company is specialised in engine cooling systems applied in a wide range of appliances like automobiles, tractors, construction equipment, gensets, windmills, etc.It caters to the export market as well .It has been a consistent performer over the years and looks heading for an EPS in excess of Rs 25 for FY22-23.It has seen buying at lower levels .
WPIL (1867)-The company is a pioneer in pumping systems where it is involved in designing, developing, manufacturing, erecting, commissioning, and servicing of pumps and pumping systems. Its application os over a wide range of industries like power, irrigation, steel, chemical, firefighting to name a few. The company has come out with a robust set of numbers and going by current trend could be heading for an EPS of 180 and above for the current year.At current levels the stock looks attractive.
Lumax Inds – (1658)-The company is a leader in Indian automobile lighting business with a market share in excess of 60%. It caters to Bajaj Auto, Hero Motor, Tata Motor, Ashok Leyland, Mahindra besides Maruti and thus has a rich clientele. The company now has plans to invest Rs 450 cr to increase technological competence and for brownfield capacity building. This comes at a critical time as the last 5 years have seen revenue stagnating at around 1600-1800 cr. Interest costs have started creeping up and net profits declined. While the company could still post around Rs 160 EPS for the current year, the management’s capex plan could hold the key for the future.
HSCL (84)-The company manufacturers anode material for Li ion battery which powers EVs, consumer devices like smartphones and energy storage devices.The company has 7 manufacturing facilities and one in China.The company is clearly focussed in specialising in carbon and its derivatives and looks set for a long haul.The stock looks a little stretched but looks an accumulation candidate.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY –The monthly expiry turned out negative as the index broke below 17800 and unless a swift bounce comes the range could shift lower to 17400-17800 in the near term. The 200-dma of around 17350 looks imminent next week and that could prove critical for the market as it was also the budget day low. The broader market has also turned negative with advance decline ratio rapidly worsening.
BANK NIFTY-The decline was broadbased and the support of 40000 also gave way.The index now looks heading for levels of 39200-300 where some short covering could be expected.
PICKS FOR THE WEEK-
Hindalco-(415)-The stock has been on a gradual decline and with the breaching of 425 looks heading for lower levels of 380-390.
Glaxo Smithkline(1312)-The stock has been a huge underperformer in the last 2-3 years. However closer to levels of 1200 it enjoys good long-term support. Long term investors could look to buying at declines for a possible target of 1450.
Wishing all readers, a great week in the markets!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam