WEEKLY TRENDSETTER (MAY 22nd ,2021)
| 2021 | MAY 14 | MAY 21 | Ch % |
| NIFTY | 14678 | 15175 | 3.38 |
| BANK NIFTY | 32169 | 34606 | 7.57 |
| USD/INR | 73.28 | 72.80 | -0.65 |
MARKET REVIEW –The week started on the front foot from the word go on Monday and after some profit-taking in the middle of the week closed with a flourish for the week. The banking counters were in the forefront with both private and PSU banks showing healthy gains.
REVIEW OF RESULTS (MARCH QTR)
The result season has thrown some encouraging numbers and focus this week is on some outstanding performance for the March quarter.
Rs in cr, Bracket indicates ch in %
| Company | Revenue | Net profit |
| Usha Martin | 653(+27) | 65.1(+999) |
| Happiest Minds | 221(+18) | 36.1(+580) |
| Quick Heal | 105(+64) | 39.7(+397) |
| Tanla Paltforms | 649(+24) | 102.5(loss of 89) |
USHA MARTIN (53)-The company has shown a very promising trend in the last few quarters. While revenue has been rising steadily, interests costs have been declining, margins have been improving. The bottomline has improved despite a fall in other income which suggests that the company is operationally improving. The company is into manufacturing of steel wire ropes which is in demand in industrial& crane, mining and construction sectors. The company posted an EPS of around Rs 5 for FY20-21 despite a washout in the 1st quarter.
Happiest Minds (761)-The stock has captured the imagination of investors as expectations are high due to its high digital presence as well as high profile promoters who have created investor wealth in the past. However, results seem to suggest that the momentum has slackened in the past couple of quarters. The company classifies digital offerings as five emerging technologies — cloud, software-as-a-service, security, analytics/artificial intelligence, and internet of things and looks to achieve 20% organic growth. The demand environment has accelerated with the vaccination drive in the US and Europe, an increasing adoption of remote ways of working, and paucity of talent in the US, which leads to outsourcing to niche players, said Joseph Anantharaju, executive vice chairman, Happiest Minds. Clearly a company to watch out.
Quick Heal (227)-The company has an interesting background .It got listed in March ,16 and was highly fancied and even the working over the last 5 years has been remarkably consistent .While the rise in topline has been from Rs 300 cr to Rs 333 cr in the past 5 yrs(FY17-21) ,bottomline has doubled from Rs 53 cr to Rs 107 cr .EPS stands at a healthy Rs 17 for FY21 .The March quarter has seen some very serious growth in revenue and profitability .Enthused by the performance ,the management has proposed a buyback of 63.25 lac shares for a maximum of Rs 155 cr at a price of Rs 245 per share. Promoter holding is strong at 72.83 %.Investors may say bye bye to this buyback !! Clearly exciting days ahead !
Tanla Platform (865) –Some platform this is !This is a cloud communication company providing value added services in the cloud communication space. While the q-o-q performance looks exciting largely due an exceptional write -off in the previous quarter and also muted operational working ,sequentially the performance has been muted and thus the market was also not enthused.These companies provide push notifications and one-time-password services to OTT platforms and financial services firms and the trend is only likely to accelerate. After a stratospheric rise from Rs 50 to Rs 860 in one year ,some cooling off could again attract investors.
MARKET OUTLOOK.
1.The banking counters have provided the right impetus to the indices and despite a week in which metals corrected ,pharma and IT were mixed ,the 7% rise in the banking index now rises expectations of the Nifty surpassing the previous high of 15431 .Besides its also the derivative expiry week and if levels of 15000 holds on ,chances are high that the high could be touched in the coming week !!
2.Major results for next week are Grasim,BPCL,Cadilla,BOB,Gujarat Gas and a host of mid caps and small caps .
2.The coming week could see auto,capital goods ,consumer durables in action as metals take a breather .Some banking counters like BOB will be keen watched and if broadly the sector puts up a decent show for the March qtr, that could boost sentiments notwithstanding the uncertainty caused by aggravating Covid conditions .The market could trade in a higher band of 15000-15350 for the week with the possibility of the 15431 high getting scaled .
Some technical cues are as follows going by market trends
Scrips to watch out
BPCL (466)-The scrip back to its resistance level of 465-70 .However ,momentum seems to suggest that it could scale past levels of 490-500 in the coming week .
L&T Finance(91) –The stock has been an underperformer over the past few weeks.However the 85-90 levels have seen good resilience .Going into expiry the scrip could touch levels of 100 on short covering .
Bank Baroda (81)-The counter has seen good open interest rise and now looks set to touch levels of 87-90where stiff resistance could be seen.
Health is wealth in these trying times. While this too shall pass, till then take care as the future is ours, if we ride through this present turmoil!
Have a great trading week!
Krish Subramanyam