It was a very choppy week for the Indian markets, thanks to the higher-than-expected inflation both in India and the US. Back home, the retail inflation (for September) of 7.41 per cent, was not only higher than expected but also higher than in August. India’s benchmark indices, thus, closed marginally negative for the week – declining about 0.5 per cent compared to the previous week.

However, as always, some stocks did nicely buck the volatility in the market to close higher than in the week ended October 7.

Rajesh Exports

Topping the gainers’ list last week was the stock of gems and jewellery exporter, Rajesh Exports, gaining 15 per cent in the past week. Interestingly, the stock underperformed over the past year, gaining a tepid 8 per cent, even as PC Jeweller (321 per cent) and Kalyan Jewellers (64 per cent) raced ahead. The company, in June this year, unveiled its big-ticket expansion plan in electronics manufacturing. Rajesh Exports announced a plan to set up India’s first display fabrication unit in Telangana for making AMOLED displays for smart TVs, smartphones, and tablets. With a proposed spend of ₹24000 crores, this is possibly one of the largest investments in high-tech manufacturing in recent times. In Q1 FY23, the company reported a 3 per cent decline in revenue even as the operating profit margin remained flat at 0.6 per cent. The company currently trades about 20.5 times its trailing twelve-month earnings, compared to over 37 times for the industry.

Castrol

The other winner this week was the stock of global lubricant major, Castrol, which gained about 9 per cent, compared to the week before. After underperforming over a one-year period, the stock has been on a recovery path since June 2022 end. The company reported a healthy 40 per cent jump in revenue for Q1 FY23 to ₹1242 crores, while operating profit grew by a robust 44 per cent to ₹286 crores, implying a margin of 23 per cent. A consistent dividend-paying company, Castrol India sports a strong balance sheet with a practically minuscule debt of ₹2 crores, as of June 2022. The stock currently trades about 15 times its trailing twelve-month earnings compared to 27 per cent for the industry.

Angel One

Stock of broking company, Angel One gained 8 per cent last week, compared to the previous week. Strong performance in Q2 FY23, with a 36 per cent revenue growth to ₹717 crores and a 49 per cent increase in operating profit to ₹288 crores, aided the rally in the stock. The company grew its client base by a whopping 77 per cent as of September 2022 ended period to 11.6 million. The stock currently trades at 18 times its trailing twelve-month earnings, marginally lower than peers such as Anand Rathi Wealth (19 times).

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