• 10 months ago
- #HDFCBank Q3 deposits see slow growth
- #Dabur in focus

Find out where money is moving in the market today with Agam Vakil on 'Hot Money'. #NDTVProfitLive
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04:03 Hello and welcome. You're watching Hot Money.
04:05 I'm Agam Vakil, and this is the show where we take you through all the sectors and stocks which are buzzing in trade.
04:10 A quick look at the markets, which have had a relatively quiet morning, but on the whole,
04:17 a little bit of weakness also seeping in towards the last one hour of trade, at least as far as the benchmarks are concerned.
04:24 The Nifty currently marginally in the green, but the Bank Nifty is now down by 2.2% at the moment.
04:32 We're seeing a little bit more volatility as far as banks are concerned, and while they did start off with the bank,
04:37 do remember largely on account of a whole host of Quarter 3 updates coming in,
04:43 well, we have seen a little bit of a moderation since then.
04:47 And of course, when it comes to the broader markets, we are keeping an eye on a whole host of companies out there.
04:52 You know, too, the broader markets have also moved largely in tandem with the benchmarks,
04:58 but at the moment now they're outperforming them to a certain extent.
05:03 So you do have a 0.4% gain for the mid-cap index.
05:06 The small-cap index as well is up and about by just as much, about 0.5% gain for that one as well.
05:13 Want to quickly take a look at all the stocks which are buzzing in the broader markets.
05:18 And in terms of the top gainers, we have Tube Investments now.
05:23 Tube Investments is up 5.4% as we speak at the moment, doing well in today's trade and on good volumes too.
05:30 That's followed by NHPC.
05:32 NHPC is the other counter which is also trading near day's highs, up around 4.3%.
05:39 It has given up to a certain extent as compared to what we saw earlier in the morning, but well, gains all the same.
05:46 And then we have Motherson Wiring.
05:49 Motherson Wiring is also advancing in trade today, up around 4.1%, followed by Yes Bank.
05:55 And that's largely what we have in terms of advances as far as the broader markets are concerned.
06:02 On the other hand, in terms of those stocks which are looking at weakness, Max Healthcare down by around 3%.
06:08 Gujarat Florochem, which has been on an uptrend, so to speak, over the past couple of weeks in fact,
06:17 is now under pressure and is down around 2.4% right now.
06:21 Do remember just a couple of sessions ago, it was well over Rs.3800 per share.
06:28 Of course, it's missed out on that one now and it slipped below that mark currently at around Rs.3700.
06:33 So keep an eye on some of these counters as we continue to move into trade today.
06:39 And on that note, I'm going to very quickly address all the themes that we want to talk about.
06:46 We do want to talk about banks, of course, along with HDFC.
06:49 We also want to address what's happening with the real estate sector as well.
06:54 We have a whole host of updates coming in from there too.
06:57 Of course, Kalyan Jewelers in the jewellery sector, Dabur in the FMCG sector,
07:03 NDPC along with Hindustan Aeronautics as well from the defence sector.
07:08 And well, to take us through that, we are also going to be in conversation with Hemang Jani,
07:15 who is an independent market expert.
07:16 Hemang, good afternoon. Thanks so much for joining in.
07:19 Hemang, I'm going to come to you in just a bit.
07:22 Let me first address what's happening with the financials.
07:26 And let me get in my colleague, Harsh, to give us an update on the same.
07:31 Harsh, can you take us through all the quarterly updates that have come through in the sector?
07:36 Well, you know, let me first start off with HDFC Bank because that was, you know, the big one.
07:43 Now, almost 15% of the NIFTY is what HDFC Bank actually comprises of.
07:49 And, you know, with regard to advances, it was a good set of numbers, 5% growth on advances.
07:56 This somewhat, in my view, also indicates the fact that on a higher base, HDFC Bank is still able to grow.
08:04 5% sequential is quite impressive.
08:07 Now, the granular numbers, let me come to what exactly is pushing this growth forward.
08:13 One is the commercial and rural banking segment of HDFC Bank growing at 6.5% sequentially.
08:18 Mind you, this is roughly 25% of HDFC Bank's combined loan book, which is the merged entities loan book.
08:25 And that's quite a sharp, you know, growth number that we're continuing to see on that.
08:30 It has grown at 7% sequential.
08:33 So, of course, one needs to keep an eye out on whether it can continue to grow at that rate.
08:37 The other piece, of course, is with regard to retail loans up 3% sequentially.
08:41 Corporate also this time showed a bit of an uptake, 2% sequential growth on the corporate front.
08:47 Deposits were a bit disappointing, 2% growth on the deposit side of things.
08:51 And within that, retail deposits grew by around 3% or thereabouts.
08:56 So, that was one positive among the deposit growth number.
09:01 The wholesale deposits have actually shrunk.
09:03 So, that's something that we'll have to, of course, await further clarity on.
09:08 Quickly moving on, L&T Finance was the other one, 31% year-on-year growth with regard to AUM.
09:13 Retailization there continues.
09:15 Disbursements continue to remain quite strong from an L&T Finance perspective.
09:19 Utkar Small Finance also, again, 31% growth year-over-year with regard to loan portfolio.
09:26 Of course, is newly listed as well.
09:29 Deposit growth though, just about 18%.
09:31 So, clearly trailing, there's a huge delta between loans and deposits.
09:35 How do they bridge it will be the key question here.
09:38 RBL Bank also 20% loan growth, 13% deposit growth.
09:42 Fairly steady set of numbers, but that gap again will be something that RBL Bank will want to bridge.
09:49 J&K Bank, 14% loan growth, 9% deposit growth, both of which were below what the industry is growing at,
09:56 giving up some of its market share.
09:58 But the CASA ratio is above 50% for this one because it has that very strong franchisee in J&K.
10:04 So, all of those, of course, in focus today.
10:07 Right. Thank you so much for that, Harsh.
10:10 Hemang, good afternoon.
10:12 Let me start off with your view on the banking sector as a whole.
10:15 What is your expectation when it comes to the sector?
10:18 And if you, in fact, do find value in a handful of these names,
10:23 specifically perhaps from the private sector space?
10:27 Good afternoon. Thanks for having me.
10:30 I think clearly banking is one sector where there is comfort both in terms of the earnings for this year.
10:39 In fact, of the incremental earnings for FY25,
10:44 40% is going to be contributed by the banks and the financials.
10:48 So, that is something that is giving comfort.
10:51 At the same time, the valuation at an aggregate level is far comforting.
10:56 And that makes that as one of the best placed sectors for investors.
11:03 Now, coming to the idea that we make at this point of time within the banks,
11:09 of course, PSU banks will be at the forefront of that.
11:12 It's State Bank of India, Canberra Bank, Bank of India.
11:17 These are the names that we like when it comes to PSUs.
11:20 Within the private sector banks, we like ICICI Bank
11:25 and Federal Bank, I think, and even Axis Bank.
11:28 So, I think clearly there is a larger degree of comfort when it comes to banking.
11:35 All right. Well, from there on, we move on and talk about the real estate sector.
11:41 We have two updates coming in, one from Soba and the other one is from Macrotech Developers.
11:46 I have my colleague Anushi, who's joining us to give us an update on the same. Anushi.
11:52 Right. So, I'll start off with Soba first, wherein the company has reported about a pre-sales growth of 12% at Rs. 3,410 crores,
12:00 while the company's nine-month FY24 pre-sales stood at about Rs. 10,300 crore on track of its guided Rs. 14,500 crore.
12:08 The collections, however, were down about 3% for Macrotech,
12:12 while the company reported an intraday high of 9%. It reversed its early-day gains and is now about 0.5% up.
12:19 Now, coming to Soba Limited, the company achieved about a 37% pre-sales growth at Rs. 1,952 crores,
12:26 while the average price realisation saw about a 14.8% growth.
12:30 The company did update that it has launched two new residential projects measuring about 3.83 million square feet.
12:37 Some profit booking over here, while the company did report a phenomenal run yesterday.
12:42 So, those are the two stock updates for today.
12:46 Thank you so much for that, Anushi. Hemant, it's been a staggering run for the real estate sector
12:50 and clearly the sector of the year and it continues to move even higher.
12:55 A lot of market participants are now factoring in even more robust sales.
13:01 The question really is that would you be circumspect on the sector or is there much more
13:06 in terms of the rally that we can expect when it comes to the sector going ahead?
13:12 What happens is that in a bull market, there are sectors which are leaders,
13:17 where you see strong momentum and at times, we get a sense that, okay,
13:23 in terms of valuations or the sheer absolute gains, it has run its course.
13:29 But that would be a bit tricky situation.
13:32 So, my feeling is that we have a lot of headroom when it comes to the earnings
13:40 and this entire bull market and real estate being at the forefront of that.
13:44 We will have to participate by having maybe some allocation towards that.
13:49 Either it will be through some of the large Mumbai-based developers,
13:54 maybe Lodha, Ludhich Property, or some of the Bangalore-based names,
13:58 maybe Brigade, Prestige, and so on and so forth.
14:02 But the participation is very crucial because we think that given the momentum,
14:08 the fresh sales in terms of the new projects pipeline
14:12 and the kind of earning visibility which is there,
14:15 surely there is much more upside with some minor correction along the way.
14:20 Okay. Well, we shift focus to Suzla on energy then,
14:24 and that's advanced by around 2% after the company's bagged a 225-megawatt wind project.
14:30 And we spoke to the CFO, Himanshu Modi, on the company's execution plans.
14:35 This is what he had to say. Listen in.
14:38 I think from a financial perspective, we've ticked all the boxes.
14:43 I think from a branding perspective, Suzla has a huge brand recall
14:49 and brand promise with our customers.
14:51 Ability to execute always existed within the company,
14:55 so there's never been a doubt on that front.
14:59 So from a timing perspective, I think all ends have met,
15:04 and it's just about waiting it out over the next few quarters
15:08 to see how profitably and effectively are we able to execute.
15:11 Having said that, there are of course challenges on ground in terms of execution.
15:16 It's not a cakewalk, and it's not an easy business to install turbines.
15:22 But I think Suzla's learning and understanding its people,
15:26 its experience all come in handy towards meeting those challenges.
15:32 All right. On that note, it's time to take a short break.
15:35 But don't go anywhere. We'll be back in just a bit.
15:37 Stay tuned to NDTV Profit.
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17:33 Welcome back. This is Hot Money, and now we address Dabur.
17:37 Well, that's also come out with its quarterly updates,
17:41 and we also have a city which has maintained the sell rating on the stock.
17:45 Now do remember that Dabur has been struggling with respect to
17:48 top-line growth as well as its volumes.
17:52 The other factor here is, of course, that Dabur has a wide range of winter products,
17:57 and in this case, it does seem like the quarter hasn't been up to satisfaction,
18:02 which is why at least some of these experts on the street
18:06 are just a tad bit circumspect with respect to this company.
18:09 It's not like it's one of the most cheapest of the F&CG pack,
18:13 certainly not very expensive either.
18:15 But really the question at the moment is what do you do with Dabur?
18:21 In terms of what the quarterly update had to offer was,
18:23 that the consolidated revenue will be estimated to about mid to high single digit.
18:30 And moreover, they do see early signs of revival in consumption,
18:34 but that really hasn't panned out as far as the winter season is concerned,
18:39 and the company is likely to post a 7% consolidated revenue growth
18:44 and about 9% earnings growth in Q3 FY24.
18:49 Is this satisfactory?
18:51 That's something which is going to be a wait and watch,
18:54 and perhaps a lot will also depend on the kind of profitability
18:57 that the company comes through, especially when it comes to margins.
19:01 Hemang, if I can actually pose a question to you,
19:04 if you have a view on Dabur in general,
19:06 and also the entire F&CG pack with the way things stand,
19:10 because it's not like we've seen a substantial recovery
19:13 specifically from the rural sector.
19:17 When we talk about F&CG,
19:20 I think if you look at the price performance
19:23 of some of the prominent F&CG stocks,
19:26 they have done pretty well in the last two or three weeks.
19:29 Broadly, the sector has underperformed the NIFTY
19:33 over the last, let's say, one year period.
19:35 But clearly, you're seeing a bit of a momentum
19:39 come through the business updates that we've seen so far,
19:45 and Dabur has not been that great.
19:47 And if you look at the commentary,
19:49 rural side is not showing any meaningful traction also.
19:53 Quarter on quarter, many categories have not really participated.
19:56 So our view is that you should have participation in F&CG
20:00 because as a part of the sector rotation,
20:02 definitely the sector would do well at some point.
20:07 There is a lot of stability that one can expect.
20:10 And there are two names that we prefer.
20:13 One is the Marata Consumer, which has been an outperformer
20:16 for a fairly long period of time,
20:19 both in terms of stock price and the actual performance.
20:22 And the second one is ITC, which is cheaper
20:25 compared to some of the prominent F&CG companies,
20:28 maybe HUL, Dabur, Britannia, etc.
20:32 And where we are expecting a decent quarterly performance.
20:36 Okay. And from there on, we move to Kalyan Jewelers.
20:41 This, of course, is something on expected lines,
20:43 perhaps a strong quarter indicator in its quarterly numbers,
20:47 where India's operations revenue growth stood at around 40%
20:50 on a year-on-year basis.
20:52 And the company also added about 22 new showrooms
20:56 on a net basis, of course, new Kalyan showrooms.
20:59 Hemant, do you have a view on Kalyan Jewelers
21:01 and perhaps some of its relatively larger peers like Titan?
21:07 So we have a view on the discretionary consumption space
21:11 and we do feel that the organized jewelry market
21:16 will grow both in terms of the overall volume
21:20 as well as market share gains from the unorganized segment.
21:23 So, you know, two companies we prefer.
21:26 Number one is Titan.
21:28 I think there is a long way to go in terms of market share gains
21:31 in terms of the further expansion that the company has undertaken.
21:36 The smaller jewelry brands that the company has acquired,
21:39 I think a combination of all this will start playing out.
21:43 It's been one of the best performing stocks
21:45 and must have in the portfolio from a compounding perspective.
21:49 The other one that we like is Sanko.
21:51 I think the company did the IPO, the stock has started doing well,
21:54 but when we look at the opportunity,
21:56 when we look at the gap between Titan
21:58 and some of the smaller companies, it's huge.
22:02 So I think Sanko is something we like,
22:05 apart from Titan.
22:06 Kalyan, we don't have coverage,
22:08 so I won't be able to put out any right now.
22:10 Okay. Well, on that note, it's time for another short break.
22:14 We'll be right back. Stay tuned in.
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25:00 Welcome back.
25:02 And now we put the spotlight on the power sector,
25:04 specifically NTPC, which is in focus,
25:06 as well as the Central Electricity Regulatory Commission
25:09 in its draft tariff norms for FY25-29
25:14 has raised the return on equity for new storage-based hydro projects.
25:18 Of course, hydro projects when it comes to NTPC
25:21 is just one of the many segments that it is into.
25:24 And we must also remember that NTPC is also expanding
25:27 its renewable energy, that is, its non-thermal
25:30 or non-coal-based power production,
25:33 and that perhaps bodes well for the company.
25:36 Hemang, if you do have coverage on NTPC-1,
25:39 and with respect to some of the other
25:43 private sector power producers,
25:44 NTPC hasn't run up as much.
25:46 It does seem like there may also be relative value in this one
25:49 as compared to something like a Tata Power or JSW Energy.
25:52 Are you of the same opinion?
25:54 What is your view on this?
25:56 It's been one of the main sectors
26:01 which has done very well over the last, let's say, about a year or so.
26:04 And given the NTPC's positioning,
26:08 both in terms of thermal power,
26:11 as well as its plans to move into renewables,
26:14 it's quite encouraging.
26:16 Also, from the government side,
26:18 if you see, there are a lot of reforms
26:21 that the government has announced,
26:24 and NTPC would be one of the beneficiaries of those reforms.
26:29 So we think that from an allocation perspective,
26:33 it would be good to have NTPC as a part of the portfolio.
26:38 The stock has run up quite a bit,
26:40 but we think that given the new positioning
26:43 which is there from the government side,
26:46 there is a scope for another 15-20% uptake in a stock like NTPC.
26:52 Of course, we must also remember that,
26:55 from what we understand,
26:57 the CERC has also agreed to compensate
27:00 all the power producers who import coal.
27:04 And that, of course, is the other factor
27:06 which may in fact play in favour
27:09 of some of the thermal producers,
27:10 NTPC being one of the major ones.
27:12 But on that note, Hemang,
27:14 I want to take a moment to thank you for joining us
27:16 and taking us through your views on the markets
27:18 and the many stocks and sectors that we spoke about.
27:20 And on that note, it's a wrap on this edition of Hot Money.
27:26 Stay tuned to NDTV Profit, and we'll keep bringing you more.
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