WEEKLY TRENDSETTER (MAY 16,2025)
| 2025 | MAY 2 | MAY 9 | Ch % |
| NIFTY | 24347 | 24008 | -1.39 |
| BANK NIFTY | 55115 | 53595 | -2.76 |
| USD/INR | 84.26 | 85.53 | +1.51 |
MARKET REVIEW-The fear of an inevitable war finally became a reality as India and Pakistan went to war.However during the weekend after dramatic developments cease fire was declared.This should enable the market to erase all the losses of the previous week.
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 |
| EPL | 1105(+7) | 112(+700) |
| Paradeep Phos | 3494(+55) | 160(+700) |
| Krishana Phos | 473(+79) | 33(+450) |
| Mang Chem | 774(-1) | 16(+220) |
EPL (208.45)-The company has been a pioneer in flexible packaging and has been growing from strength to strength over the years .The March quarter also saw a good operational set of numbers notwithstanding an exceptional write -off of 60 cr in the corresponding previous quarter.With an EPS of Rs 11.2 for FY25,the stock looks attractive.
Paradeep Phosphate(142) –The company makes use of five primary raw materials in its manufacturing processes — namely, phosphate rock, ammonia, phosphoric acid, sulphur and muriate of potash. It has a long-term supply contract with the promoter OCP Group, custodian of 70% of the world’s phosphate reserves, which is a huge advantage . It allows the company to secure phosphate rock at a competitive price and manufacture phosphoric acid in-house at the Paradeep plant. In fact, Paradeep plant produces 14% of India’s phosphoric acid, making it the country’s second-largest private sector producer. The backward integration enables the company to have a competitive edge and the March quarter results show the same.With an EPS of Rs 6.8 for FY25,the stock looks a decent bet.Another development is the proposed merger of the company with Mangalore Chem which is expected to result in cost synergies and pan India presence.
Krishana Phoscam(339)-The company manufactures DAP,water soluble fertilizer,secondary and micro nutrients,etc.It has seen remarkable growth in the past 5 years.Maintaining the momentum it has come out with another set of good numbers and the stock has raced ahead to touch an all time high .With an EPS of Rs 14 for FY 25 ,the stock looks good for accumulation.
Mangalore Chem(224) – The company is a leading manufacturer of urea,DAP ,etc and has a strong presence in South India.In a recent development it is getting merged with Paradeep Phosphates(PP) .Investors will get 187 shares of PP for every 100 shares of MC.The merger will create a pan India presence which augers well in the long run.PP also has strategic source of raw material supply which has enabled it to consolidate its position.There is an interesting arbitrage of 13% available on the 2 shares.However ,PP could be bought at declines for fresh investors.
NIFTY –The index looked resilient till mid -week.However,the on set of war spooked sentiments and by end of week the index had cracked and just managed to close above 24000.However, after positive developments over the weekend range for the coming week should be 24300-25000.
BANK NIFTY-The index was under pressure from the beginning of the week itself.After touching a life time high it has not been able to maintain the momentum. However,for the coming week post the positive developments the index could be an out-performer and the expected range is 54000-55500.
STOCK PICKS
Tata Motor (709)-The stock managed to buck the trend and registered good gains over the week.Buying could be considered around 700 for possible target of 750 in the short term.
India Glycol(1400)-The stock has been on a consolidation for the past few weeks.However it looks poised to go past its all time high of 1545.Accumulation could be considered .
Wishing all readers a great week ahead!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam