WEEKLY TRENDSETTER (DEC 1ST ,2023
| 2023 | Nov 17 | Nov 24 | Ch % |
| NIFTY | 19732 | 19795 | 0.32 |
| BANK NIFTY | 43584 | 43769 | 0.42 |
| USD/INR | 83.26 | 83.40 | 0.17 |
MARKET REVIEW–
BACK TO RESULTS (Sep qtr.)
The Sept quarter results are over. So far, it has been a decent show. This week let us explore some of them:
Rs in cr, Bracket indicates ch in % against Sep,22 quarter.
| Company | Revenue | Net profit |
| Jio Financial | 149(4866) | 89(4350) |
| Zomato | 2848(+71) | 36(+114) |
| KCP | 700(30) | 48(+1100) |
| ITD Cementation | 1610(+55) | 45(+1000) |
Jio Financial (226.7) -The new emerging financial behemoth posted its first quarterly results since getting listed.The company still has to start its full fledged operation and plans to enter consumer finance,asset management and insurance.Meanwhile in an interesting development the company has made an application to RBI to convert itself from an NBFC to a CIC(core investment company).CIC is a company which invests in shares and debentures of group companies and hold control over the group companies.Atleast 90% of its net assets should be invested in shares,bonds,debentures ,debt or loans of group companies.
Zomato(113) – One of the most keeply watched new age companies posted its first profitable quarter which will increase expectations for the coming quarters .Growth was led by Blinket and margins were at 3% and the management expects to take it up to 4-5%.The food delivery stage is still in a nascent stage and prospects are expected to improve .The investor profile has changed in the last one year .While DIIs have reduced their holding from 38 % to 13% in the last one year ,FIIs have increased their holdings from 28% to 56% .The company has a long way to go with changing customer preferences.At the current market price it looks fairly priced.
KCP(144)- The company has presence in cement ,sugar,power and hospitality .After a difficult FY22-23 the company has posted 2 decent quarters and seems to be getting its act together.The next 2 quarters should be interesting as post monsoon period along with a travel and tourism in full swing the divisions could be expected to do better.With a near Rs 5 EPS for the first 6 months of the year the scrip could be a decent investment bet at lower levels of around 125.
ITD Cementation –The infra major posted a stellar quarter and with a comfortable debt equity ratio of 0.34 and order book of Rs 22000 cr.The company has a major presence in metros where it is involved in metro projects which are at advanced stages of completion.Due to low activity in the Sept quarter due to monsoon,the coming two quarters are expected to be robust.With a 10% EBIDTA the outlook looks bright.However despite a low debt equity the interest cover is just over 2 times which could put pressure on the bottomline on any pressure on margins.At current market price it looks well priced.
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY – The index was fairly listless though resilient and the level of 19700 held on.With monthly expiry next week ,the index could see some volatility .Levels of 19600 should provide good support and on the upside ,the index could make a steady advance past 19900.
BANK NIFTY-The index took support at the 200-dma of 43300 and though it underperformed,HDFC Bank was an outperformer and going into monthly expiry week that could be an interesting pointer and the index could make an attempt to go past 44100
PICKS FOR THE WEEK
IOL Chemicals (452) -The scrip touched a high of 898 in Aug 2020 and since then went into a correction mode even as the market continued to rally .However ,after touching a low of 272 in March ,23 ,the scrip has recovered .In the coming weeks it could see it gathering steam and a target of 550 could be expected.
Aptech (254)-The scrip has been on a bear market of its own even as the other mid cap and small cap scrips have been on a runaway rally.However levels of 240-50 could provide decent support and the scrip could be expected to head upwards towards levels of 290-300 in the coming weeks.
Wishing a great trading week to all readers!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam