WEEKLY TRENDSETTER (SEPT 6,2024)
| 2024 | AUG 23 | AUG 30 | Ch % |
| NIFTY | 24823 | 25235 | 1.71 |
| BANK NIFTY | 50933 | 51351 | 0.72 |
| USD/INR | 83.90 | 83.86 | -0.08 |
MARKET REVIEW-The week saw gains on all days and Nifty managed to close above 25000 for the week. This was despite muted contribution coming from banking counters.
BACK TO RESULT SEASON
June 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 June,23 quarter.
| Company | Revenue | Net profit |
| Navneet | 798(+1) | 746(+440) |
| ExCom Tele | 243(+58) | 22(+340) |
| Fedbank Fin | 477(+1225) | 70(+1300 |
| Graphite India | 728(-2) | 236(+886) |
Navneet – One of the oldest companies in the education space which has also been keeping pace with the digital world. It has kept pace with the various Boards like State Boards and CBSC and allied revenue is from stationary, edtech and others. The June quarter got a major boost in the form of exceptional gains of Rs 660 cr which resulted in a jump in EPS. Operationally the company’s performance has been decent. The 2 major divisions of the company are publication and stationery with revenue contribution of 55% and 45% respectively. Interestingly stationary exports have been on the rise and contributes 60% of the stationary revenue. The company has also made investments in the digital space like K12, SFA Play.com, beGalelio and Tinkerley.The exceptional gains have come from part of stake sale in K12.The company has been a steady performer with EPS of Rs 11 for FY24.Valuation looks attractive and the scrip is an accumulation candidate.
Exicom Tele (385)- The company is a sustainable energy transition company operating on two business fronts: enabling electrification of transportation through innovative EV charging products and facilitating energy stability of digital communication infrastructure with power conversion systems and energy storage solutions. It came out with in IPO recently and met with a resounding response. The management has stated that despite some slowdown in EV space, long term outlook looks bright as the trend is positive. With a strong presence already in the space the company is well placed to capitalize on available opportunities. With an EPS of Rs 1.5 for the quarter, it looks well priced.
Fedbank Financial (121) -The NBFC is a subsidiary of Federal Bank which has shown an aggressive growth in its short period of existence. Its objective is to empower the self-employed force of India with loan against property, gold and unsecured loan. With an EPS of nearly Rs 8 on trailing basis it has made an impressive beginning in its short term of existence. The stock has been sluggish and near its low of 108 post listing earlier this year. At current levels it looks interesting.
Graphite India (516)-The company is a pioneer in the manufacture of Graphite Electrodes as well as Carbon and Graphite Speciality products. The June quarter was encouraging as despite low realization capacity utilization rose from 67% to 87%. The outlook for the steel industry still looks grim and despite a decent performance its too early to assess the sustainability of the same. At current levels one could wait and watch.
NIFTY –The index had an impressive run during the week bucking the sluggish banking counters which are yet to contribute. With a successful close above 25000, this looks like the immediate support level and 25500 is likely in the coming week.
BANK NIFTY-The index has to do some catch up as it is still trading well below the life time high. Levels of 51800 is likely in the coming week while lower levels of 51000-51200 should see decent support.
PICKS FOR THE WEEK
IEX (204)-The stock has seen a strong breakout past 200 and levels of 195-200 should provide decent support. Buying could be considered for possible levels of 220-225.
Coal India (528)-The stock touched an all -time high during the week before profit -taking emerged bringing in down to near support levels of 520-30. Buying could be considered for a possible target of 560-70 in the coming days as long-term trend appears intact.
Wishing all readers, a great trading week!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam