WEEKLY TRENDSETTER (June 23RD ,2023)
| 2023 | June 9 | June 16 | Ch % |
| NIFTY | 18563 | 18826 | +1.39 |
| BANK NIFTY | 43989 | 43938 | -0.12 |
| USD/INR | 82.47 | 81.94 | -0.64 |
MARKET REVIEW–The week saw several stocks hitting life-time highs and participation was broad based.The banking stocks witnessed profit-taking and the weakness in HDFC Bank kept the Bank Nifty under pressure.With Nifty approaching life-time high ,the coming week would be interesting .
BACK TO RESULTS (March qtr.)
The March 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 March,22 quarter.
| Company | Revenue | Net profit |
| Transformer & Rec | 434(+28) | 9.6(+999) |
| Hind Consn | 3094(+6) | 187(+999) |
| Zen Tech | 95.9(+245) | 23.4(+354) |
| Neuland Lab | 407(+59) | 84.5(+288) |
Transformer & Rectifier-(79)-The company is a leading manufacturer of transformers upto 1200 KV.The company has now set its sight on manufacture of transformer for green energy.On the performance front interest costs remain a matter of concern as EBIDTA margins are also slender at 7.76 % which has to go into double digit for the company to generate better cash flows.With an EPS of Rs 3 for FY 23,the stock has caught attention of investors .
Hind Construction (18.30) – This infra major has a wide presence in sectors like transport, hydro, water and nuclear. After reeling under heavy losses over the past few years the company is now coming out of red with focus on debt reduction which still continues to be very high.The coming quarters will largely hinge on timely execution of projects,reduction of debts and restructuring of assets to generate cash flows.
Zen Tech (395)-The company is a defence play with it providing drone solutions,live ranges ,combat training centres, live and virtual simulation.The growth has accelerated in the past few quarters .After a slow down in FY20-22 the company has posted stellar numbers in FY23 ending with an EPS of Rs 5.40.FY24 is expected to be even better with the management expecting 20% of the turnover to come from exports.The stock has run ahead with high expectations but is likely to remain under the radar .
Neuland Labs (2919)-The company showed a strong revenue growth driven by speciality and CMS segment .The quarter saw the highest ever EBIDTA margin of 30.8% which has seen EPS jump to Rs 128 for FY 23.The scrip has attracted investment attention .
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY –The index almost touched life -time high of 18888 before cooling off. The coming week could see another attempt to breach past this level.
BANK NIFTY-The index was an under performer largely due to HDFC Bank and bouts of volatility saw it cracking 43500 before finally closing below 44000.In the near term the index could be in a range of 43800-44200 .
PICKS FOR THE WEEK-
Camlin Fine Science (168.5)-The stock has seen a run up from 125 to 180 before consolidating in the higher band. Near term support of 155-60 could continue and the scrip could advance to levels of 185-90 in the coming weeks.
Engineers India (112)-The scrip has broken out of a 3-year range on good volumes. Support at 105 -110 levels appears strong.Levels of 140-150 could be seen in the coming weeks.
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam