WEEKLY TRENDSETTER (FEB 21,2025)
| 2025 | FEB 7 | FEB 14 | Ch % |
| NIFTY | 23560 | 22929 | -2.68 |
| BANK NIFTY | 50158 | 49099 | -2.11 |
| USD/INR | 87.41 | 86.79 | -0.71 |
MARKET REVIEW-The week saw losses mounting on the broader market which saw a savage correction. The sharp unsustainable gains of the last 2 years saw panic selling in several counters which was also accentuated by margin calls. The correction looks likely to continue as valuations still look stretched in several scrips. Meanwhile, it will also bring into focus scrips where bargain hunters will start nibbling.
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 |
| Jyoti Structure | 137(+144) | 11(+1000) |
| Sandur Manganese | 952(+522) | 139(+1290) |
| Polyplex Corp | 1721(+15) | 105(+517) |
| Glaxo Smith | 949(+17) | 230(+400) |
Jyoti Structure (19) – The company was a leading player in transmission, erection and commissioning of power projects in India.However, it fell into lean times. However, it has been on a revival path since the last 2 years. It has got some domestic and international contracts and the promoters have also increased stake in the company. It is planning to come out with rights issue in the ratio of 9:26 at an issue price of Rs 16(Rs 14 premium). The issue size is Rs 500 cr and the funds are to be used for payment of NCLT approved resolution plan and also meeting costs and margin requirement to raise funds from banks for operation of the company. The Dec quarter has seen improvement in working and with further augmenting of funds, the prospects should improve in the coming years.
Sandur Manganese (345) –The company is a leading player in mining of manganese ore, iron ore, coke and also has solar and waste heat-based power generation facilities. It has also acquired facilities to enhance capacities. The Dec quarter saw a robust growth in earnings boosting its EPS to Rs 8.48 for the quarter. The equity share capital has ballooned from Rs 27 cr to Rs 162 cr on the back of a liberal bonus and rights issue. At current market price the price is discounted about 8-10 times FY25 earnings. Technically the scrip could see support around 250-75 as higher levels are attracting selling pressure.
Polyplex Corp (1131)-The company is an integrated and diversified manufacturer of plastic film substrates including BOPET (thin & thick), BOPP, CPP and Blown PP /PE. It has a wide offering of specialty, innovative and differentiated products across a variety of packaging, electrical & electronic and other industrial applications. It has also diversified into post-consumer and postindustrial plastic waste recycling. It is also the first in the industry to foray into digital printing films. The Dec quarter saw an all-round growth and surge in profits. With an EPS of Rs 18.4 for the quarter and Rs 65 for the 9-month period, the scrip looks attractive.
GlaxoSmithKline Pharma (2019)- The company’s portfolio spans three product areas: vaccines, specialty and general medicines. The general medicines include anti-infectives, pain management, vitamins minerals nutritionals, hormones, dermatologicals, and respiratory products. The Dec quarter has seen a good show from the company with an EPS of Rs 13.5 and the year should end with an EPS of around Rs 55-60. The scrip has seen a correction from around 3000. At current levels the scrip looks attractive.
NIFTY –The index closed below 23000 which does not auger well for the coming week. It has bounced from 22800 levels on 3-4 ocassions. However, the level looks vulnerable. On the breach of 22800 the index could see levels of 22500.
BANK NIFTY-The index is also slipping steadily though bouts of buying are seen near critical levels. Levels of 47500 could be seen in the coming days where it has seen repeated support. Higher levels of 49500 could see selling pressure.
STOCK PICKS
M&M Fin (271)-The stock saw a promising rally which saw it go past 300.However, profit-taking was sharp as it slipped to 270.Any attempt for a counter rally could see resistance at around 275-80 where selling could be considered for a target of 250 in the coming days.
Wishing all readers a great week ahead!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam