WEEKLY TRENDSETTER (JUNE 11th ,2021)
| 2021 | JUNE 4 | JUNE 11 | Ch % |
| NIFTY | 15670 | 15799 | 0.82 |
| BANK NIFTY | 35291 | 35047 | -0.69 |
| USD/INR | 73 | 73.06 | 0.08 |
MARKET REVIEW –A week of consolidation for both indices and towards the close of week banking stocks saw profit-taking after the smart gains registered in the past couple of weeks. Mid -cap and small -caps continued to outperform and with the result season providing fresh cues, bargain hunters were kept busy.
REVIEW OF RESULTS (MARCH QTR)
The result season is slowly coming to an end and focus this week is on some outstanding performance for the March quarter.
Rs in cr, Bracket indicates ch in %
| Company | Revenue | Net profit |
| Pennar Inds | 557(+23) | 33.6(+999) |
| Narayana Hrud | 838(+13) | 70(+462) |
| Lakshmi Org | 519(+34) | 36.4(+257) |
| Harison Mal | 148(+63) | 17.3(+441) |
Pennar Inds (27) –The company has an impressive profile catering to solar, railways, auto components, white goods, aerospace, pre -engineered buildings, etc. Notwithstanding a high other income component of Rs 19.96 cr, the company’s performance is still impressive. High debt has been a drag. However, with improving margins and cash flows, there is scope for the same to come down over the next few quarters. With an EPS of 2.35 for the quarter, a sustained performance could boost valuations.
Narayana Hrudayalaya (490) -After a lacklustre performance in the first half of the year, the last quarter showed a strong comeback. The company is a chain of multi-speciality hospitals operating in India and Cayman Islands. It is on an expansion mode in Cayman Islands with niche offerings like fully fledged oncology services. Debt went down by Rs 100 cr during the year with improved cash flows.
Lakshmi Org (225)-A recently listed company, it posted decent results though sequentially profitability has not kept pace. It is one of the largest manufacturers of ethyl acetate. The company ‘s products find application in end user industries such as pharmaceuticals, agrochemicals, dyes and chemicals, inks and coatings, paints, printing and packaging, flavors and fragrances, adhesives and other industrial applications. Low debt could be leveraged to propel growth in the coming years.
Harrison Malayalam (213)-The company is India’s largest producer of rubber and also a leading tea producer based out of South India.FY21 has been an outstanding year for the company and the best in the last decade. With an EPS of Rs 22 for the year the scrip looks fairly priced.
MARKET OUTLOOK.
1.Financials again proved to be a drag on the market with intermittent profit booking which eroded marginal gains. Pharma and IT were the preferred space during the week while the mid and small pack continuing to sizzle.
2. Results season is coming to an end and some of the ones to look forward to next week are Coal India, PFC, LIC Hsg, Power Grid, Eveready, NTPC, etc among several others.
2.The market closed at an all -time high and global cues continue to be good. Rotation in sectors is witnessed. The Nifty could broadly continue to be in a band of 15600-15900 in the coming week. Some volatility could creep in as profit -taking could be adopted by investors after enjoying a sustained rise in the last few weeks.
Some technical cues are as follows going by market trends
Scrips to watch out
Datamatics Global (151)-After some cooling off the scrip again looks to resume its uptrend. Levels of 145-50 could provide decent support and the scrip could head to levels of 165-70.
Pudumjee Paper (31.85)-The scrip saw a huge breakout from 28-30 levels which could be considered decent support levels. The scrip has potential to scale levels of 40 in the coming weeks.
We are all living in hope that the current Covid situation will pass. Faith in Almighty is the need of the hour to tide over this difficult phase and restore normalcy.
Have a great trading week!
Krish Subramanyam