WEEKLY TRENDSETTER (JUNE 21,2025)
| 2025 | JUNE 6 | JUNE 13 | Ch % |
| NIFTY | 25003 | 24718 | -1.14 |
| BANK NIFTY | 56578 | 55527 | -1.86 |
| USD/INR | 85.64 | 86.05 | 0.48 |
MARKET REVIEW-The market was largely rangebound for most part of the week waiting for some triggers. However, the trigger came in the form of an unpleasant nature with a sudden flare up of tension between Israel and Iran. Crude surged 10% and the rupee also weakened which saw a sharp sell off in equites and Nifty slipped below 24800.The coming week also looks uncertain and caution is advised. Long term investors could look to add high quality stock at any sharp dip.
BACK TO RESULT SEASON
March quarter results are coming to an end. 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 |
| Aster DM | 1000(+2) | 96(+9500) |
| Zinka Logistics | 122(+31) | 280(-91) |
| Sundaram Cl’ton | 587(+5) | 143(-47) |
| Manorama Inds | 233(+80) | 42(+223) |
Aster DM (570) –The company started as a single clinic in 1987 and has grown into a healthcare conglomerate providing healthcare services which includes hospitals, pharmacies, digital health solutions and beyond. It started its operations in Dubai and with growth in operations in the Middle East as well, the company decided to demerge its operations outside India. The current operations in India are concentrated in the 3 states of South India -Kerala, Karnataka, Andhra and also parts of Maharashtra. The company has shown decent growth in revenue and profitability. With healthcare enjoying premium growth in India, future prospects look bright. The stock looks well priced. However lower levels of 400-450 could attract investor attention.
Zinka Logistics (445) –The company offers modern era truck services and operates on an asset light model for long haul FTL (full truck load), standard delivery and inter city freight services. The value addition comes in the form of fastags, fuel loyalty cards and GPS tracking subscriptions to truck operators. The logistic platform operates in the name of Blackbuck. The company has also been solving some of the core problems like price discovery, route optimization, in-transit tracking and timely delivery assurance. However just like new age digital companies the company has made a slow start with a string of losses. Even in the March quarter but for a tax credit the company would have posted modest profits. Debt levels are negligible and thus a quick turnaround on a sustainable basis is well on cards. The stock price has been stuck in a narrow band since listing waiting for triggers.
Sundaram Clayton –The company is one of the largest auto components manufacturing and distribution group in India. It is a leading supplier of aluminum die castings to automotive and non-automotive sector. Since commencing operation in 1962, the company has achieved many milestones and emerged as one of the preferred solution providers in machined and sub-assembled aluminum castings. However, the last 4-5 years have been tough for the company with a string of losses. Even in the March quarter it has posted losses which was more than offset by an exceptional income. The losses have been primarily due to losses of the wholly owned subsidiary in US pulling down operating margins. On a standalone basis it has posted profits of Rs 38 cr though the consolidated picture turned negative with losses of Rs 11 cr. The sale of land in Chennai for Rs 163 cr should help in improving its financial matrix. The stock should be on the watchlist as its group has been known for its expertise in the auto sector.
Manorama Inds(1420) -The company is a leading manufacturer of tree borne oils and fats which has application in all food processing industries like bakery,confectionary,culinary and savory, cheese ,icecreams,etc.It has shown an impressive growth over the years .In the FY21-25 period topline has growth from Rs 208 cr to Rs 771 cr while profits have zoomed from Rs 18 to Rs 112 cr.EPS stands at Rs 18.8 for FY25 .Valuations are high in line with its impressive growth.
NIFTY –The index again took support at 24500 in an unexpected crash towards close of week. Going into next week sentiments still look fragile due to the ongoing geopolitical tension between Israel and Iran. Broader market looks resilient as buying has been emerging at lower levels. For the coming week as well range should be 24500-25000.
BANK NIFTY-The index touched a life time high of 57049 before profit booking set in. Near term support should come at 54500 and upside is capped at 56500.
STOCK PICKS
With uncertainty prevailing in global markets an index strategy is recommended as follows: –
NIFTY -Calendar spread -Buy 25000 call (June 26 expiry) at 145 and sell 25000 (June 19 expiry) at Rs 60 with a bullish bias .Net cost comes to 85. Keep for target of 150 and a stop-loss of 40.
Wishing all readers a great week ahead!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam