Inflation Report - Two Stocks from the Energy & Consumer Cyclicals Sector: ENOG & CURY

This report is an updated version of the report published on 18 July 2025 at 07:51 AM GMT+1.

Section 1: Introduction

Overview & Key Concepts:

Inflation is the gradual loss in purchasing power, primarily due to an increase in the price levels of goods and services over a given period.

• Inflation: A continuous rise in the overall price level of goods and services, which diminishes the purchasing power of money.
• Deflation: A decline in the general price level, which raises the real value of money but can discourage spending and lower business earnings.
• Disinflation: A reduction in the rate at which prices are increasing prices still go up, but more slowly than before.
• Stagflation: An economic condition marked by slow growth, elevated unemployment, and high inflation occurring simultaneously, making policy responses difficult.

Drivers and Causes of Inflation:

• Demand-Pull Inflation: Occurs when demand for goods and services exceeds supply, leading to price increases.
• Cost-Push Inflation: Results from rising production costs, such as wages and raw materials, causing producers to raise prices.
• Built-In Inflation (Wage-Price Spiral): Happens when workers demand higher wages to cope with increased living costs, leading to further price hikes in a self-reinforcing cycle.

Inflation Data for UK - June 2025

• According to the Office for National Statistics (ONS), the UK Consumer Prices Index increased marginally to 3.6% in June 2025, from 3.4% in May, which may prompt the Bank of England to hold its current interest rate at 4.25% rather than proceed with further cuts. This development has supported cautious optimism in the markets, though a further increase in inflation could delay additional rate cuts and weigh on investor sentiment. 

Inflation Report Coverage:

• Inflation report highlights how inflation impacts sectors differently, favoring value and defensive sectors like Energy, Materials, Consumer Staples, Healthcare, Utilities, select Financials, and REITs with inflation-indexed leases, while rate-sensitive sectors like Consumer Discretionary and high-growth Tech typically underperform.
• The report focuses on companies with proven business models, steady financials, high free cash flow, and stable ROE that can pass on costs to customers and protect margins. The aim is to identify stocks that can outperform inflation via capital gains and dividends, supporting diversified sectoral exposure.

Section 2: Company Overview

Energean PLC (LSE: ENOG) is an FTSE 250 listed hydrocarbon exploration and production entity, with a focus on natural gas. The Company has operations in eight countries across the Mediterranean and the United Kingdom North Sea. The Company explores and invests in new ideas, concepts, and solutions to produce and develop energy with a low carbon footprint.

Kalkine’s Inflation Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

2.1The Key Positives, Negatives, Investment Highlights, and Risks

Section3:  Financial Highlights

 3.1 Key Financial Highlights

Section 4:  Key Metrics

Section 5:  Stock Recommendation Summary

5.1 Valuation Methodology (Illustrative): Price/ Earnings Relative Valuation approach

5.2 Price Performance and Stock Recommendation

The stock has witnessed an upside of ~12.69% in 3 months and decreased by ~10.29% over the last 6 months. Moreover, stock is trading above the average 52-week high price of GBX 1,113.00 and 52-week low price of GBX 720.50.

5.3 One-Year Technical Price Chart

5.4 Technical Summary

Section 2: Company Overview

Currys PLC (LSE: CURY) is an FTSE 250 listed omnichannel retailer. The company operates through 720 stores across six countries while retailing technology products and services.

Kalkine’s Inflation Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

2.2 The Key Positives, Negatives, Investment Highlights, and Risks

Section3:  Financial Highlights

 3.1 Key Financial Highlights

Section 4:  Key Metrics

Section 5:  Stock Recommendation Summary

5.1 Valuation Methodology (Illustrative): Price/ Earnings Relative Valuation approach

5.2 Price Performance and Stock Recommendation

The stock has witnessed a rise of ~17.97% in 3 months and ~26.27% over the last 6 months. Moreover, the stock is trading above the average 52-week high price of GBX 130.18 and 52-week low price of GBX 71.59.

5.3 One-Year Technical Price Chart

5.4 Technical Summary

Note: This report may be updated with details around fundamental and technical analysis, price/ chart in due course, as appropriate. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 17 July 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 6: Dividend Yield may vary as per the stock price movement.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.