WEEKLY TRENDSETTER (MAY 23,2025)
| 2025 | MAY 9 | MAY 16 | Ch % |
| NIFTY | 24008 | 25019 | +4.21 |
| BANK NIFTY | 53595 | 55355 | +3.28 |
| USD/INR | 85.53 | 85.60 | +0.08 |
MARKET REVIEW-The week opened with a bang as short covering was triggered on the back of the ceasefire at the border and the index raced to 24800.By close of week the index had moved past 25000 and even the broader market witnessed good buying.
BACK TO RESULT SEASON
March 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 March,24 quarter.
| Company | Revenue | Net profit |
| Blue Jet | 340(+84) | 110(+182) |
| Syrma SGS | 472(-35) | 32(+3100) |
| Indian Hume | 392(-2) | 499(+1034) |
| Ugar Sugar | 511(+38) | 51(+200) |
Blue Jet-The company is into business of contrast media intermediates (39%), pharma APIs (45%) and sweeteners (13%). The pharma segment has seen a sharp growth in FY25 and going forward could be the chief revenue contributor. With a strong focus on R&D and looking for avenues to integrate backwards, the company’s prospects look bright. It has posted EPS of Rs 17.59 for FY 25. At current levels it looks well priced. However, at declines it should attract investor attention.
Syrma SGS (530) –A fast growing electronic manufacturer, the company caters to auto, industrial, IT, healthcare, Railways, defence, etc. It came out with an impressive set of numbers for the March quarter and posted an EPS of Rs 3.67 for the quarter. For FY25 it has posted an EPS of Rs 4.48. Management has guided revenue growth of 30-35% for FY 26 and maintain EBIDTA margin of 8%. Prospects look bright but valuation looks stretched.
Indian Hume (412) -The company has a long presence in the manufacture of pipes and concrete sleepers. It largely caters to the Govt Depts and Railways. Operationally the company has posted steady numbers, an exceptional income from land sale of Rs 545 cr has also boosted the bottom-line for the March quarter. The company has been struggling with lower margins and stagnant revenue. With relatively high debt, this exceptional gain could boost its finances by reducing debt and additional capex as its user industries are in a boom phase. Gradual accumulation could be done.
Ugar Sugar (48) –The company is into manufacture of sugar, power generation, distillery and confectionary. After 3 dismal quarters the company has managed to post decent numbers for the Dec quarter. Debt level has been high which has also dented the bottom-line. Despite posting EPS of Rs 4.54 for the March quarter it has ended FY 25 with a minor loss. The dismal results in the previous quarters have seen the share price losing 70% from the peak. At current levels it looks set for a good bounce.
NIFTY –Sentiments were highly positive for the entire week and dips were bought into. The index has raced ahead to close above 25000. Any dip below this could see buying. On the higher side 25500 could be the next level to watch out.
BANK NIFTY-The index sprung into action in the beginning of the week. However, profit taking creeped in and just when it looked like most of the gains would be wiped out,54400 provided good support and the index closed above 55000.The coming week could see 56000 being conquered again.
STOCK PICKS
BLS International (394)-The stock saw a good correction from levels of 522 to 330 in the last few months where support has emerged. Levels of 370-85 should be ideal for entry for a possible target of 450 in the coming weeks.
Chennai Petro (647) -The stock saw levels of 1250 last year. However, profit-taking has seen large portion of profits getting erased. However, buying has emerged around levels of 580-620 and the stock is on the verge of a breakout past 660 which could see levels of 700-750 in the coming days. Buying could be considered in the range of 630-40.
Wishing all readers a great week ahead!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam