After a consecutive rally of five trading sessions, Indian equity markets closed in the red on Friday. The Indian rupee, which is taking a little breather, ended the day on a negative note on Friday. The rupee depreciated 17 paise to close at 79.92 against the US dollar. The dollar index remained above 108 on Friday, approaching a 20-year high of 108.5 set in July, and it was up about 2% for the week.
The hawkish comments from the US Fed boosted the dollar. According to media reports, minutes from the July 26-27 meeting revealed that Federal Reserve officials maintained their hawkish stance and were committed to returning inflation to the 2% target.
On the other hand, crude oil prices fell 2.5% last week. Brent crude oil fell 1% on Friday and fell 2.6% for the week, while WTI fell 2.5% in the same period.
The BSE Sensex sharply declined from the four-month high reached on Thursday, giving up early gains to close 652 points lower at 59,646 on Friday.
The Nifty closed the day at 17,758.45, down 198 points or 1.10%. The BSE midcap index closed 1.27% lower while the small-cap index fell 0.93%.
In the previous week, 17 BSE small-cap stocks saw gains ranging from 15% to 56%.
Repco Home Finance
Shares of Repco Home Finance jumped 56.03% in the last week from ₹158.55 to ₹247.40 after the company's profit jumped 93.45 percent year on year.
The stock zoomed 19.98% in Friday's trade and 11.35% in Thursday's trade. In Friday's intraday trading, the stock opened with ₹2.07 gap up from the previous closing price of ₹206.20 and ended at ₹247.40.
For the quarter ending June, the company reported a standalone net profit of ₹62.1 crore, up 93.45% year on year, compared to a profit of ₹32.1 crore in the same period last year.
Currently, the stock is trading 29.11% below its 52-week high of Rs. 349.7. In the last month, the stock rallied by 68.01%, and in the last three months, it was up by 59.66%.
Domestic brokerage firm ICICI Securities is bullish on the stock after Q1 numbers. The brokerage firm has a target price of ₹470/share on Repco Home Finance.
The brokerage firm said that Repco Home Finance beat their estimates in terms of PAT. "Under the leadership of the new MD & CEO, Mr. K. Swaminathan, the growth strategy seems to be delivering the right results," said ICICI Securities.
DFM foods surged 28.1 percent for the week. The stock rose for five consecutive trading sessions. It gained 113 rupees last week.
On August 12, the stock hit the upper circuit and on August 16, the stock opened with a huge gap of Rs.54 and hit the upper circuit for the second straight session after the promoters expressed interest in delisting the shares of the company from the stock exchanges.
Private equity firm Advent International, which holds a majority stake in DFM Foods via its subsidiary AI Global Investments, on August 15 announced the proposal to delist the snack maker from the bourses, according to media reports.
The company has reported a net loss for the last five quarters, with the net loss increasing from 1.7 crores in June 2021 to 14.4 crores in June 2022.
For the June ending quarter, the company reported a net loss of ₹14.4 crore on the back of rising operating expenses, which rose 46.79 YOY.
In a regulatory filing, Advent expressed AI Global's intention to "acquire all the equity shares that are held by public shareholders, either individually or collectively, as the case may be."
Consequently, the Crax-maker will "voluntarily delist the equity shares" from the BSE and the NSE—the two stock exchanges where they are presently listed, the filing stated.
"We are pleased to inform you that JM Financial Limited has been appointed as the manager to the delisting proposal," it further said.
|Scrip Name||% weekly returns|
|Repco Home Finance||56.3|
|Yaari Digital Integrated services||21.3|
|India Tourism Development Corp||18.9|
|Confidence Petroleum India||16.6|
|Precision Wires India||15.6|
|Power Mech Projects||15.3|
Rane Holdings Ltd
Rane Holdings emerged as the third top gainer in the BSE-Small Cap Index in the last week, with a gain of more than 22.23 percent.
The stock has climbed from ₹697 to ₹851.95, generating a return of over 22.23% in the last week. The rally in the stock came after the company posted solid earnings for the June ending quarter.
The net profit rose 49% to ₹14.3 crore as against ₹4.7 crore in the corresponding quarter of the preceding fiscal.
Revenue was ₹29.2 crore, up 81.36 percent year on year from ₹16.1 crore in the April-June quarter of last year. EBIDTA was at Rs. 19.4 crores, a growth of 148.71% over the same quarter of the previous year.
Shares of Nava Ltd. surged 21.33% in the last week and touched a 52-week high of ₹279 on Thursday after it reported a stellar performance in Q1.
The company posted a 286.43% jump in its standalone net profit to ₹176.6 crore for the June-ending quarter as against ₹45.7 crore in the corresponding quarter of the preceding fiscal. The net profit of the company has been consistently increasing in the last few quarters.
Revenue from operations increased by 77.95% to ₹542.6 crore in Q1, compared to ₹304.9 crore in the same quarter last year. The operating profit increased 166.63%, from ₹72.7 crore to ₹193.7 crore. The EBITDA margin rose to 36.98% in Q1FY23 as against 24.55% in the corresponding quarter of last year.
The stock has a price-to-earnings ratio of 4.69x compared to the peer average of 22.7x and it has a price-to-book value of 0.68x. The company's ROE has consistently increased in the last 5 years. In the March 2022 quarter, the ROE jumped to 23.57 percent, compared to 5.19% in the March 2021 quarter.
The company grew its EBIT margin by 45% and net profit margin by 51.16% over the last 12 months. Over the last year, the stock has given multi-bagger returns to its shareholders, with 132.8% gains, and in the last month, it rallied by 27.09. The stock gave a 3-year return of 176.01% as compared to the Nifty Small-cap 100, which gave a return of 74.36%.
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