With markets not showing any strength, its a difficult thing to see your stocks continue to go up consistently. The ocassional rally in most stocks tends to fizzle out in a day or two, and even if they may not fall to pre rally levels, they do end up correcting a fair bit. Now its up to us how to take this situation. I prefer to find opportunities in such environments. We have many companies that have posted superb results and management commentary too has been bullish for near to medium term. Such companies offer a good hunting ground to uncover the next set of winners.
From among companies I own, HBL has given a detailed presentation for the first time in its history about its business segments, and within that, what kind of growth management expects going ahead. They have also provided topline and EBIDTA numbers for fy 24 and fy 25. I think the more important thing is that for the first time management has come out and given out information and their projections in the public domain. While numbers may or may not be achieved or exceeded, we can clearly track the high growth segments to see how things are panning out.
Usha Martin is playing out as expected. Results have been very good and along expected lines. A couple of days back, the stock price suddenly corrected to below 170 and there was a lot of supply at 168. If we have done our homework and are convinced about the story, buying in such panics will become easy and this can provide good entry points. Yesterday, the very next day, stock price shot up to cover all the weakness of previous day. We will find many such situations till the markets remain weak/sideways.
Many other stocks have been discussed off and on and VP colloborators corner write ups are a very good short cut to get an idea about the company and its prospects.
Among the sectors, when markets are weak, most sectors tend to weaken, but those that keep holding key levels, like say staying above 200 dema or 30 WEMA are the ones to look at if you follow technicals. Fundamentals I already talked about companies having good results and good commentary. As of now I cannot see any sector that is showing clear cut strength.
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