- All sectors in a sea of green
- Stellar Q3 update: Bajaj Finance, Angel One
Find out where money is moving today, with Hiral Dadia and Agam Vakil on Hot Money. #NDTVProfitLive
- Stellar Q3 update: Bajaj Finance, Angel One
Find out where money is moving today, with Hiral Dadia and Agam Vakil on Hot Money. #NDTVProfitLive
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TVTranscript
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01:02 Benchmark indices extend gains.
01:13 Nifty steady above 2,600 mark, while Sensex trades about 72,800.
01:20 All sectoral indices in the green barring media
01:24 with Realty hitting an all-time high.
01:26 And Bajaj Finance, Ujjivan Small Finance,
01:32 Angel Broking surge on better than guided Q3 update.
01:35 Nifty IT slips from morning highs
01:41 to trade in the red on Morgan Stanley, reiterating.
01:44 And LTI, Mindtree, HCL Tech, and TCS extend losses.
01:50 And Interglobe Aviation has withdrawn fuel charges
01:56 on recent fall in jet fuel prices.
01:59 Will other airlines follow suit?
02:01 We'll find out.
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02:14 Hello and welcome.
02:17 This is Hot Money.
02:18 I'm Agam Vakil.
02:19 And in the show, we take you through all
02:20 that is buzzing in trade.
02:22 At the moment, we are looking at markets
02:25 which have been relatively quiet on a nifty weekly options
02:28 expiry.
02:29 We have seen the benchmarks remain consolidated
02:33 over the course of the last couple of hours.
02:36 For now, however, they're both advancing.
02:38 That's something of a surprise considering
02:40 there was expectation of some amount of weakness today
02:44 considering global cues weren't very encouraging.
02:46 But we are looking at a contrary move in that case,
02:51 at least as far as the constituents of the nifty
02:53 are concerned.
02:54 Well, we'll take a look at what, in fact,
02:56 is driving these benchmarks higher.
02:58 And we can take a look at something
03:00 like an HDFC bank, which is contributing considerably
03:04 along with Axis Bank.
03:06 Remember, Bajaj Finance came up with its quarterly update,
03:09 and that is also up and about.
03:11 NTPC has been spoken about off late as well from the power
03:15 sector, and that is also providing a little bit
03:18 of support to the benchmarks.
03:20 On the losing end, we saw the IT space,
03:24 well, start with some gains, but we're
03:25 starting to see some losing out on that one.
03:27 TCS and HCL technology is under pressure at the moment.
03:30 And Bharti et al, along with Dr. Reddy, to a certain extent,
03:35 well, showing that bit of weakness.
03:37 The question really is that, where do we go from here
03:41 in terms of the markets?
03:42 Let's address the broader markets too.
03:45 And at the moment, they are outperforming the benchmarks
03:48 by just a tad bit.
03:50 If you consider the MidCap 250, the top gainers on this,
03:54 well, we will have something like a Purvankara,
03:57 which is up as much as 12.8%.
04:00 We have something like a KCP, which is up around 11.8%.
04:04 Colte Partel, along with a whole host of other stocks,
04:07 which are from the real estate sector,
04:09 and we're going to talk about that as well in just a bit,
04:11 all up and about in trade.
04:13 On the losing end, we do have weakness in Shanti Gears.
04:17 Remember, Shanti Gears is also one of the big up movers
04:21 as far as 2023 is concerned.
04:23 But I reckon we're looking at about a short covering--
04:25 pardon me, shorts building into the system,
04:28 perhaps, but you're about of profit taking coming through.
04:31 PSP Projects is under pressure, down 3%.
04:35 Shivalik Biometals, that was the other one
04:38 that we had addressed a couple of sessions ago.
04:40 That is also under pressure by as much as 3%.
04:43 And of course, VST Industries, that's down 2.5%
04:46 after gains seen over the last couple of days.
04:48 So those are largely some of the key movers with respect
04:52 to the broader markets.
04:54 And we'll continue to keep an eye on that one.
04:57 With that, let's talk about what we
04:59 are going to talk about in the show today.
05:02 Of course, we're going to keep an eye
05:04 on a whole host of financial stocks,
05:07 NBFC specifically, Bajaj Finance,
05:10 along with something like a Poonawalla Fin Corp,
05:12 a whole host of relatively small cap names
05:16 in the private sector banks, which have also come up
05:18 with their quarterly earnings--
05:20 pardon me, quarterly updates.
05:22 And we also have Soba, along with a whole host
05:26 of realty companies, which are up and about,
05:28 and of course, Torrent Power, where
05:32 we have seen a lot more in terms of volumes.
05:35 But to take us through and understand
05:38 these themes and stocks, we are also in conversation
05:41 with Vivek Karwa.
05:43 He is the Chief Executive Officer at Vidhi Investment.
05:46 Vivek, good morning, and thanks for joining in.
05:48 Vivek, just hold on and stay with us.
05:51 We'll talk about the NBFCs right at the top.
05:55 And we do have an update from Bajaj Finance,
05:57 as well as Poonawalla Fin Corp, which are, in fact,
06:00 rallying on the back of the Q3 update coming in.
06:03 We have Pragati, who is joining us
06:05 to give us an update on the same.
06:07 Pragati, good afternoon.
06:08 What do you have for us?
06:09 Hi, Agam.
06:10 You're absolutely right.
06:11 The Q3 provisional figures of both Bajaj Finance
06:14 and Poonawalla Fin Corp are out as of this morning.
06:16 And you're absolutely right.
06:17 The stocks have been rallying in the market as well.
06:20 Now, if I have to look at the numbers specifically
06:22 and bring them to you, let's look at Poonawalla Fin Corp
06:25 first.
06:25 The disbursements are up almost 12% quarter on quarter.
06:28 The AUM is also up 8% quarter on quarter.
06:31 And our viewers can have a look at the numbers that are there
06:34 on the screen as well.
06:36 Now, if we look at the asset quality, which
06:38 is a very important metric for NBFCs as well,
06:41 the company has simply said that the GNPA and the NNPA ratios
06:45 are expected to move further or to improve further.
06:48 While they have guided that they are striving to maintain
06:50 the NNPA below 1%, there are no exact figures as of now
06:54 available to us.
06:55 If you look at liquidity with this company,
06:57 it is at almost 2,800 crore as of this quarter.
07:02 But let's also remember that these
07:04 are the provisional figures.
07:05 And we have to wait for the actual numbers to come out.
07:08 For Poonawalla Fin Corp, we must remember
07:11 that in the last quarter when the numbers came out,
07:14 the profit rose over nine times.
07:17 But that was also because on the sale of its subsidiary.
07:20 Back then, Poonawalla Fin Corp sold its investment
07:23 in Poonawalla Housing Finance as well.
07:26 So that was a main driver of the profit.
07:28 So this time, we need to see what drives the profit.
07:31 What are the numbers coming out?
07:33 Another NBFC under our focus, under our radar,
07:36 as you rightly mentioned, is Bajaj Finance.
07:39 Now, a very interesting set of numbers,
07:41 relatively above guidance as well.
07:43 And that's possibly a reason why the stock is rallying as well.
07:47 If you look at the customer franchise,
07:49 it is up 22% year on year.
07:51 And they have mentioned very clearly in the numbers
07:54 that about 38.5 lakh new customers
07:58 have been added to their books.
08:00 And this means that the new loans have also been up
08:03 about 26% year on year.
08:05 And the AUM is also up 35% year on year.
08:09 Now, two main things that we need to look out
08:11 in Bajaj Finance, and we'll definitely be reporting
08:14 on them as well when the numbers come out,
08:16 are the net interest margins and its rural D2C,
08:19 rural business.
08:21 Because what happened in the last quarter was,
08:23 Rajiv Jain also guided that the company's NIMS
08:27 are expected to compress further
08:30 because the cost of funds is expected to go up.
08:33 And as far as the business in rural areas is concerned,
08:35 because of relative slowdown in the area,
08:38 Bajaj Finance was one of the few players, or the lenders,
08:41 that cut down on some business
08:43 in the small ticket loan segment.
08:44 So these are the two things that we'll be looking at.
08:46 We'll bring you the fresh updates as we have them.
08:48 Sure, sure.
08:49 Pragati, thank you so much for joining us
08:50 and taking us through those numbers
08:52 from those two NBFCs.
08:54 Let's get in Vivek into the conversation.
08:56 Vivek, good morning.
08:57 First up, your view on these two,
09:00 well, specifically, these two companies specifically,
09:03 pardon me, Bajaj Finance, how are you placed on this one?
09:07 As well as Poonawalla FinCorp,
09:09 if you do have coverage on this.
09:11 Good afternoon to you and all the viewers.
09:15 See, first of all, the company has stated,
09:18 come up with a great set of numbers.
09:21 And most of the analysts, including me,
09:23 were quite bullish on banking and financial services,
09:26 mainly financials.
09:27 And that is proving out to be correct now.
09:30 So when you talk about strong customer acquisition
09:34 of Bajaj Finance, that is a great positive going forward.
09:38 And they are also talking about like 33, 34% growth
09:42 in the AUMs going forward.
09:44 So which again augurs well for Bajaj Finance as a company.
09:48 So I totally agree with the Morgan Stanley report also,
09:51 which has come out today morning,
09:53 in fact, yesterday evening,
09:54 that the company, the stock can hit
09:57 as high as 9,500, 10,000.
10:00 So you should actually be very bullish
10:03 on the financials even now,
10:04 and carry on holding it, both the stocks.
10:08 In fact, Bajaj Finance and Poonawalla.
10:10 Now, Poonawalla, again, now, the management is bullish.
10:13 They are very positive on gross NPAs
10:16 and the net NPAs improving further going forward.
10:19 And the kind of digital marketing they are using,
10:23 in the sense, digital presence is what they are doing.
10:26 And most of the business is coming through digital media.
10:30 So faceless loan dispersals,
10:34 faceless customer interactions
10:36 is really doing well for Poonawalla.
10:38 So it's a young company.
10:39 And I think I have been an investor in this
10:41 since very, very long,
10:43 and it has really created wealth.
10:44 And going forward also looks like the company would do well.
10:47 And again, management also is interested
10:50 in this business a lot.
10:51 In fact, Aadhar Poonawalla has been investing
10:53 in the company as and when he got the opportunity.
10:56 So definitely I would.
10:57 - Right.
10:58 Well, right, thanks, Vivek.
10:59 Just stay on with us.
11:01 And we will also be staying on with the financial space
11:04 because we also have updates from a handful of mid-cap banks
11:08 with Jio Small Finance,
11:09 AU Small Finance, along with Bandhan Bank.
11:11 And before we take your view,
11:14 let's get in Harsh to give us an update on the Q3
11:18 in terms of what's coming in.
11:20 Harsh.
11:21 - Well, yes, absolutely.
11:22 So you've got provisional numbers.
11:24 First off for Ujjiva and Small Finance.
11:26 Of course, stock is buzzing in trade on the back of that,
11:29 but advances growth 27%,
11:32 quite a reasonable growth number
11:34 given that the base is slightly smaller.
11:37 Deposit growth, though, very impressive,
11:39 29% growth on the deposits front.
11:43 We also had CASA ratio moderating,
11:46 but that is largely the trend across the industry.
11:48 So nothing much to be done
11:50 because there's been a shift from deposits to CASA.
11:54 Quickly moving on to AU Small,
11:56 well, gross advance is there up 20%
11:58 on a slightly lower base.
11:59 That's quite a slightly tepid growth
12:03 is how I would term it.
12:05 Deposits, though, growing very, very well,
12:07 31% year over year.
12:09 And you're seeing CASA grow by around 13% odd.
12:13 Again, CASA ratio shrinking by around 1% or thereabouts.
12:16 Bandhan Bank, growth is back in a big way.
12:18 That's one good thing that I can make of the numbers.
12:22 7.7% sequential growth coming in from Bandhan Bank.
12:26 On the deposit growth front,
12:28 5% sequential growth on deposits as well.
12:31 Your loan to deposit ratio is almost 100%.
12:34 So that's one thing that Bandhan Bank needs to figure.
12:38 The other piece is your CASA deposits
12:40 are down by around 2%.
12:42 Again, we're seeing some growth,
12:44 but a negative growth clocked by Bandhan Bank
12:47 on the CASA front.
12:48 - All right, Harsh, thanks so much for that.
12:51 Vivek, your view on some of these
12:53 mid-cap private sector banks?
12:55 - See, I, in fact, like Bandhan Bank.
13:00 And see, the company had gone through,
13:03 the bank had gone through a lot of trouble,
13:05 just the way RBL Bank was going through.
13:08 And now finally they have started improving
13:10 on their numbers.
13:11 I feel that 262 is quite attractive
13:15 by somebody really wants to enter
13:16 financials and banking in particular.
13:18 So among, particularly private sector banks,
13:22 among smaller banks,
13:23 I think Bandhan Bank should be my best bet today.
13:26 And again, I think the stock should again
13:29 touch those 300 levels pretty soon.
13:32 So in fact, I had given this as a buy recommendation
13:35 in some other channel.
13:36 I continue to hold it up.
13:38 - Okay, stay with us, Vivek.
13:40 We are slipping into a short break,
13:41 but on the other side,
13:42 we talk about a whole host of other sectors
13:44 and stocks that we want to track.
13:46 Stay tuned to NET Profit.
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17:17 - Welcome back.
17:26 Now let's talk about the real estate sector.
17:29 The index here in this case has made a new 52 week high,
17:34 potentially a life high at the moment.
17:36 And it just continues to go from strength to strength.
17:38 It's not every day that you see an index move up
17:41 by as much as five and a half, 6%.
17:44 But as we speak, we're looking at significant gains.
17:47 And right at the top of that list,
17:48 we have Soba, Godrej Properties,
17:51 Macrotech Developers, DLF, Brigade Enterprises,
17:55 all of them advancing in trade.
17:56 There are no losers on that particular index.
17:59 Of course, even some of your relatively larger names
18:02 like Oberoi Realty, along with something like a DLF
18:05 are advancing and doing well in today's tier of trade.
18:08 The question is, where do we go from here?
18:10 And why is it that some of these names are buzzing?
18:14 Let's get in my colleague Anushi
18:15 to give us an update on this one.
18:18 Anushi, what do you have for us?
18:19 - Right, so Nifty Realty is having quite a field day today
18:22 with the sector gaining about 5%
18:25 in just today's trading session itself.
18:27 Now, if you look at the rise,
18:29 it is the highest ever since its October 7, 2021
18:32 gain it had made.
18:34 Now, these gains, as you mentioned,
18:35 are led by Soba Limited, Brigade, and Macrotech Developers.
18:38 But not just that, Agam,
18:40 if you look at the other realty stocks as well,
18:42 which are not a part of Nifty Realty,
18:44 Purvankara and Signature Global also showcase
18:46 about 8% to 10% strong growth in those counters as well.
18:50 But let me just circle down to Soba Limited,
18:52 wherein Motilal Oswal had picked it out
18:56 as its top pick for 2024,
18:59 wherein they have maintained a buy rating
19:01 at a target price of Rs. 1,400,
19:04 which implies about 25% upside.
19:06 So a couple of reasons that they have highlighted are,
19:10 one is the expected Soba launches
19:13 that are going to happen in the coming period.
19:16 Then we are seeing about 25% of CAGR growth
19:20 in the pre-sales number to about Rs. 100 billion
19:23 for the FY23 to FY26 period.
19:26 Along with this, land monetization of Bengaluru land assets
19:31 is expected to lead to better re-rating of the land valuation.
19:36 So do watch out for this.
19:38 The stock is up about 14% today
19:40 and with volumes trading about 9 times its 30-day average.
19:44 Thanks so much for that, Anushi.
19:46 Well, Vivek, your view on the sector?
19:48 I reckon it may just be a tad lit to get into fresh investments
19:53 as far as the real estate sector is concerned.
19:55 However, still at this point in time,
19:58 how would you place yourself?
20:01 What a moment in reality.
20:03 See, in March, the index was at approximately 390
20:06 and today we are talking about 833.
20:09 So that shows what sort of interest has been there.
20:12 And I have been very bullish on reality
20:15 and I continue to be so.
20:18 I'll tell you the reasons also.
20:19 Most of these companies,
20:20 particularly companies like Oberoi Realty, Shoba, DLF.
20:25 First thing is whatever projects they are launching,
20:29 they are just getting sold within a JIF.
20:32 It's quite fast cash flow which is coming in.
20:36 Secondly, we are at top of interest rate cycle
20:41 and the expectation is that interest rates
20:43 might come down from here.
20:44 So as and when interest rates are going to come down,
20:46 I think most of these real estate companies will benefit
20:50 because the EMI costs of the customers would come down.
20:53 So yeah, as you said,
20:55 definitely the sector has moved up a lot.
20:57 So if somebody wants to enter a fresh,
20:59 you can split your investments into a few months.
21:02 That is you can do a six months SIP into reality.
21:04 But going forward, I think with the focus on tie 2
21:08 and tie 3 companies, many of these companies,
21:11 tie 2 and tie 3 cities,
21:13 these companies will again benefit out of demand
21:16 from those cities as well.
21:18 So reality long term is bullish, short term can be volatile.
21:22 So you should distribute your investments and enter it.
21:25 Okay, that's the view coming in as far as the real estate sector is concerned
21:29 and we finally move on to Torrent Power
21:31 where the company has in fact signed four MAUs
21:34 with the government of Gujarat.
21:35 We have Himansh standing by to give us more on this.
21:38 Himansh.
21:40 Thanks Agam.
21:41 So Torrent Power, in fact, Torrent Power,
21:43 yeah, it's been consolidating for the past five sessions
21:47 and you are seeing an uptick of over 13% today
21:49 after the company signed a MOU with the government of Gujarat
21:52 ahead of the Vibrant Gujarat Summit
21:55 for over 47,500 crores.
21:58 Now this investment is planned in renewable energy,
22:00 green hydrogen and power distribution
22:03 and the investment breakup is as such with
22:05 3,450 megawatts of solar power projects that are envisaged,
22:09 1,050 megawatts odd of hybrid power projects
22:13 and associated infrastructure of 7,000 megawatts
22:16 for solar projects and power distribution.
22:19 The company, now why is this significant is because
22:22 the company already has 1,000 megawatts odd of
22:25 renewable project capacity in the works
22:27 and this is three times that size,
22:30 three to four times that size
22:31 which is very significant for this company.
22:33 It also is a beneficiary of key tailwinds like
22:37 increased reliance on renewable energy as well as
22:40 development of power capacity in this area.
22:43 Right, Himansh, thanks so much for those updates there
22:46 with respect to Torrent Power.
22:48 Remember that it continues to gain the favor of the
22:51 Gujarat government and has in fact,
22:53 this is not one of the first MOUs that the company has signed with them.
22:56 But Vivek, your quick view on this one,
22:59 if this is under your radar?
23:01 I would say not closely tracking Torrent Power
23:05 but overall the sector looks good because there is,
23:08 you can find in fact a full power sector.
23:10 So what I feel is valuation wise,
23:12 here this stock looks a bit stretched after the run up
23:15 and Gujarat based companies are actually moving up.
23:17 So the expectation is that in Lok Sabha polls also,
23:20 Gujarat would give a good number of seats to the ruling party
23:24 and hence the positive sentiment.
23:26 So you can continue holding it on but fresh buying,
23:29 I would not advise.
23:30 All right, Vivek, we will very quickly address
23:34 what's happening in terms of the Q3 earnings.
23:36 We have GM Breweries where we in fact do have earnings
23:40 and not just an update here.
23:42 The total business coming in at around 6.7 lakh crores
23:47 as on December, that's Central Bank of India, pardon me.
23:50 That's the business update here.
23:52 Okay, we will come back to some of these updates.
23:56 We're slipping to a short break.
23:59 On the other side, we talk about Angel One
24:01 and what's been keeping that stock higher.
24:04 Stay tuned in.
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26:18 - And finally, we have Angel Broking,
26:26 which is in focus where the stock has advanced in trade
26:29 after updates for the month of December,
26:32 where things continue to go from strength to strength.
26:34 Its ADTO has increased, as has its client base.
26:38 Client base up by as much as 53%,
26:41 and we are looking at strong ADTOs,
26:44 overall ADTOs climbing 22% on a month-on-month basis,
26:48 some staggering numbers.
26:49 Vivek, we've been seeing this stock
26:52 go from strength to strength.
26:53 What's your view on Angel One?
26:55 - I say my view would be that you should be long-term bullish
27:00 on the entire wealth management space.
27:03 Now, why so?
27:04 As you said, client base is increasing.
27:06 In fact, Angel One has seen good traction
27:08 in commodities business,
27:09 the stock exchange business as well.
27:13 So, and with markets being bullish,
27:17 I think more and more investors would keep coming in
27:20 and they would keep acquiring clients going forward as well.
27:23 So overall, the wealth management space
27:26 and even the listed AMCs look good to me.
27:28 I think next five, seven years,
27:31 this space is really going to grow really.
27:34 So if you're having it, you should definitely hold it on.
27:37 And as I said, overall space looks good.
27:42 - Okay, Vivek, we'll leave it at that.
27:44 Thank you so much for joining us
27:45 and taking us through your views on the markets
27:47 and the several stocks and sectors that we've discussed.
27:50 And with that, it's a wrap on Hot Money.
27:51 Don't go anywhere, I lost my lined up.
27:53 Stay tuned to NDTV Profit.
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