WEEKLY TRENDSETTER ( AUG 15,2025)
| 2025 | AUG 1 | AUG 8 | Ch % |
| NIFTY | 24565 | 24363 | -0.82 |
| BANK NIFTY | 55617 | 55004 | -1.1 |
| USD/INR | 87.51 | 87.7 | 0.22 |
MARKET REVIEW-The markets continued to slump as negotiations with US over tariff worsened with a backlash of additional 25% tariff on some sectors which could be a huge setback for sectors like textiles, gems and jewellery, etc. While there is still room for negotiation, relations with US have been strained. India is not the only affected party with US as a host of countries are unhappy with the tough US stance.
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,24 quarter.
| Company | Revenue | Net profit |
| Paradeep Phos | 3754(+57) | 256(+4166) |
| GSFC | 2184(+0.1) | 134(+57) |
| Lemon Tree | 316(+17) | 48(+140) |
| Sequent Scient | 441(+13) | 18(+100) |
Paradeep Phosphate –The stock has been a star attraction in the market along with Mangalore Chem with which it is due to get merged. The company produces NPK/DAP in 2 plants located in Odisha and Goa.In addition to backward integration both facilities have port access. It came out with strong set of numbers for the June quarter in revenue as well net profits. In a recent development Mangalore Chem is merging with the company in the ratio of 187:100 which will result in a pan India presence for the merged entity. Both the stocks have raced ahead in the past 6 months. At current levels it looks stretched but once the merged entity starts trading and the stock cools down it should present an interesting story.
GSFC(213) – The company is into manufacture of fertilizer-urea,DAP,AS,APS and NPK and industrial chemicals -caprolactum,melamine,etc.It came out with an improved performance largely due to higher margins which still stands relatively low at 8.5%.Debt levels are negligible and the company is also invested in other companies like GIPCL(15.7%)GNFC(19.9%),GACL (2.25%) and Guj Gas (6.82%) .It is available at relatively attractive price and though the performance in the last few years has been flat, potential remains in terms of valuation.
Lemon Tree(143) –The company has been a compelling story of growth in the past 5 years where it also had to weather the Covid .In this period revenue has increased from Rs 252 cr to Rs 1286 cr and profits have risen to Rs 243 cr from a loss of Rs 182 cr .The company follows an asset light model with 101 hotels ,has been reducing debt levels gradually and exploring Tier 2 -3 cities as well as leisure destinations. At current levels it looks well priced but lower levels should attract investors.
Sequent Scientific-(174)– The company operates in the animal health market and has seven manufacturing facilities based in India, Spain, Brazil and Turkey. A major development is the proposed merger of Sequent with Viyash Life Sciences which should see a major leap in terms of R&D team size, USFDA approved manufacturing footprint and higher new product filings. Incidentally Viyash is into manufacture of human API s which should be an interesting synergy with a diversified presence. The merger process is still a few months away. The stock could see investor buying on any decent correction.
NIFTY –The index continued to wilt under selling pressure as 24500 was breached towards end of the week and now the 200 -dma around 24050 looks inevitable. Leadership is clearly missing as banking, IT, pharma continues to face brunt of selling. In the near term the markets look oversold and any bounce could see resistance around 24500-600.
BANK NIFTY-The index closed at the lowest point of the week and on the brink of 55000.The index could slide to 54000 in the coming days in the absence of any meaningful support.
STOCK PICKS
BANK NIFTY-The index looks all set to breach the 55000 level and head closer to 54000 in the coming days. Buy 55000 strike Sept put at around 780 and sell 54000 strike Aug put at 230.Net cost of 550.Keep a target of 1000 and SL of 250.
JSW Steel (1049)-A relative outperformer in the recent weeks the stock has decent support at around 1030. Buying at dips could be considered for a possible target of 1100.
Wishing all readers a great week ahead!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam