Ask Profit | Angel One Declines In Trade | NDTV Profit - video Dailymotion

NDTV Profit

- #AngelOne's margins took a hit according to their Q3 results - What does this mean for shareholders?  Get your stock-related queries answered by our technical and fundamental guests with Alex Mathew and Smriti Chaudhary on Ask Profit. #NDTVProfitLive  Guest List: Ashish Kapur, CEO Invest Shoppe Gaurav Bissa, VP - Incred Equities _______________________________________________________  For more videos subscribe to our channel: https://www.youtube.com/@NDTVProfitIndia Visit NDTV Profit for more news: https://www.ndtvprofit.com/ Don't enter the stock market unaware. Read all Research Reports here: https://www.ndtvprofit.com/research-reports  Follow NDTV Profit here Twitter: https://twitter.com/NDTVProfitIndia , https://twitter.com/NDTVProfit LinkedIn: https://www.linkedin.com/company/ndtvprofit Instagram: https://www.instagram.com/ndtvprofit/  #ndtvprofit #stockmarket #news #ndtv #business #finance #mutualfunds #sharemarket  Share Market News | NDTV Profit LIVE | NDTV Profit LIVE News | Business News LIVE | Finance News | Mutual Funds | Stocks To Buy | Stock Market LIVE News | Stock Market Latest Updates | Sensex Nifty LIVE | Nifty Sensex LIVE

Transcript

00:00 [MUSIC PLAYING]

00:03 [MUSIC PLAYING]

00:06 [MUSIC PLAYING]

00:10 [MUSIC PLAYING]

00:13 [MUSIC PLAYING]

00:17 [MUSIC PLAYING]

00:20 [MUSIC PLAYING]

00:24 [MUSIC PLAYING]

00:28 [MUSIC PLAYING]

00:32 [MUSIC PLAYING]

00:36 [MUSIC PLAYING]

00:40 [MUSIC PLAYING]

00:44 [MUSIC PLAYING]

00:49 [MUSIC PLAYING]

00:52 [MUSIC PLAYING]

00:56 [MUSIC PLAYING]

01:00 [MUSIC PLAYING]

01:04 [MUSIC PLAYING]

01:08 [MUSIC PLAYING]

01:12 [MUSIC PLAYING]

01:17 [MUSIC PLAYING]

01:20 [MUSIC PLAYING]

01:24 [MUSIC PLAYING]

01:28 [MUSIC PLAYING]

01:32 [MUSIC PLAYING]

01:36 [MUSIC PLAYING]

01:40 [MUSIC PLAYING]

01:45 [MUSIC PLAYING]

01:48 [MUSIC PLAYING]

01:52 [MUSIC PLAYING]

01:56 [MUSIC PLAYING]

02:00 [MUSIC PLAYING]

02:04 [MUSIC PLAYING]

02:08 [MUSIC PLAYING]

02:13 [MUSIC PLAYING]

02:16 [MUSIC PLAYING]

02:20 [MUSIC PLAYING]

02:24 [MUSIC PLAYING]

02:28 [MUSIC PLAYING]

02:32 [MUSIC PLAYING]

02:36 [MUSIC PLAYING]

02:41 [MUSIC PLAYING]

02:44 (upbeat music)

02:46 (upbeat music)

02:49 (upbeat music)

02:51 (upbeat music)

02:54 (upbeat music)

02:57 (upbeat music)

03:10 (upbeat music)

03:19 (upbeat music)

03:22 - Good morning and thanks so much for joining in.

03:28 You're watching Ask Profit.

03:29 My name is Alex Mathew with me is Smriti Chaudhary

03:31 and we'll take you through the next half an hour of trade.

03:33 Now, if you've got questions on any stocks

03:37 that you might want to buy, or in fact that you hold,

03:40 you can send them to us on any one

03:41 of our social media platforms or indeed

03:43 on the WhatsApp number that is flashing

03:45 on your screen as we speak.

03:47 Now, let me also introduce you to the guests

03:49 that will answer all of those questions.

03:52 We've got Ashish Kapoor,

03:53 the Chief Executive Officer of Investshop,

03:55 as well as Gaurav Biswa, the VP of Incred Equities.

03:59 We've got Ashish joining us right now.

04:02 Very quickly, let's take you through what's happening

04:04 with the markets and you have the benchmark indices

04:07 that are off the low point of the day.

04:08 And in fact, we made fresh highs in trade today itself,

04:12 but we're trading off that high point.

04:15 It's not a very large range that we've traded in

04:18 for the benchmark Nifty 50, and consolidation seems

04:21 to be the name of the game in trade today.

04:23 Trading above that 22,100 mark as we speak.

04:26 The broader market seemed to be doing better though.

04:28 You have the mid-cap index that's up about a third

04:30 of a percent, and you have the small cap index

04:32 that's up about 0.4% or thereabouts.

04:36 But if I'm not mistaken, and this has been the case

04:39 for a large part of the session today,

04:41 you have advanced declines more or less moving in tandem

04:45 and equal share between, there you go,

04:47 it's more or less equal between the advances

04:49 and the declines as things stand right now.

04:52 Among the sectors, you have the winners of yesterday

04:54 that are losing ground today.

04:56 You have the IT index as a whole that's down

04:58 about eight-tenths of a percent,

04:59 and realty is dropping about 1% or thereabouts.

05:02 And you have the banks that are looking reasonably strong

05:05 in trade today, particularly the PSU Banking Pack,

05:08 which is up about 0.8%.

05:10 Of course, the Nifty Bank is up about 0.2%.

05:13 Remember, today is a fin nifty expiry, if I'm not mistaken.

05:18 So therefore, it's gonna have a bearing

05:21 on this group of stocks as well.

05:23 But we're speaking about Angel One

05:25 in the ask profit focus today.

05:27 Smriti, why are we focusing on this particular stock?

05:30 - Good morning, Alex, and good morning, viewers.

05:32 The stock is down about 10.5% as we speak.

05:36 So a lot of focus on Angel One now.

05:38 Yesterday, it came out with its third quarter results.

05:42 Just to look at the numbers,

05:44 on a quarter-on-quarter basis,

05:45 the revenue was only marginally up about 1%.

05:49 At 1,059 crores, EBITDA fell 10%,

05:54 on a sequential basis, to 397,

05:57 and margin also contracted to 37%

06:00 compared to 42% in the last quarter.

06:02 Net profit fell 14% to 260 crores.

06:06 So all in all, a bit of a weak quarter

06:09 for Angel One sequentially,

06:11 and this is also because year on year,

06:14 if you look at the expenses, that grew.

06:17 But I'd specifically like to highlight this one point

06:21 by this brokerage, Yes Bank,

06:23 where it says it initiated a buy coverage

06:27 and said that it's very positive on Angel One.

06:31 And there's a point that it makes is

06:32 the wholehearted adoption of the flat fee model

06:34 is a masterstroke for Angel One,

06:37 since it is now a dominant model.

06:39 And Alex, we have seen quite a strong performance

06:42 from the likes of Angel One

06:44 and all the capital market players.

06:45 But a bit of a downtick in results this time,

06:49 and that we can see in the share price as well.

06:52 Ashish, I'm gonna come to you on this.

06:54 Good morning and welcome to the show.

06:56 Angel One, now, a bit of a weak quarter this time,

07:00 but overall, the company has been doing quite good.

07:05 How do you view this stock in the longer term?

07:08 Well, I think the capital markets are here to boom.

07:13 And Angel is one of the very strong players.

07:19 Now, they've had plenty of regulatory issues

07:24 also in the last one year.

07:26 And also the results are pretty disappointing.

07:29 So they are going through a bad patch.

07:32 But having said that,

07:34 they are one of the larger broking players

07:37 and I think going ahead,

07:39 they would get the advantage of the continuing traction,

07:43 which we are seeing in the capital markets.

07:45 With more and more individuals,

07:47 more and more investors coming into the market.

07:50 So the volumes are increasing

07:51 and broking business is looking good now

07:54 because the number of players left are fewer.

07:58 So there is a lot of consolidation

07:59 and Angel is one of the larger, more established players.

08:03 So I would think that this is a one-off thing.

08:06 And I think even the regulatory thing,

08:08 which has happened on Angel,

08:09 would be a good lesson learned.

08:12 And the results are disappointing,

08:14 but I think the company would be able to come back.

08:17 So if you're holding on,

08:19 I think if you're holding this stock,

08:20 continue to hold on.

08:22 And I would think that if you are betting on India's

08:26 financial market expansion

08:27 and financial inclusion going forward,

08:30 then I think use this bad patch

08:32 to gradually add shares in Angel One.

08:36 - Fair point. All right.

08:37 Let's jump into the questions then.

08:38 We've got Dilesh Joshi,

08:40 who's got the first question.

08:41 And this is a long-term query on India Glycol

08:44 and whether or not it can be bought for the long-term.

08:47 Ashish, coming back to you on the fundamentals,

08:49 since this is a long-term query,

08:51 do you have a view on India Glycol

08:53 and would you suggest a fresh entry for the long-term?

08:55 - Well, I haven't tracked this counter for some time,

09:00 so I wouldn't know.

09:01 - Okay, fair point.

09:02 I will go across to Gaurav.

09:03 Gaurav, on the charts,

09:06 slightly longer term timeframe,

09:08 would you suggest a fresh entry?

09:09 What are you looking at in terms of the major cues?

09:12 - See, the chart structure looks very interesting

09:16 and it's a strong name.

09:18 And among the chemical space,

09:19 we have been bullish on India Glycol for a while now.

09:23 It had a multi-year breakout.

09:26 It has seen a good breakout retest.

09:28 The breakout retest was at a much lower level.

09:31 So it was around 650, 700.

09:33 At this point, around 900,

09:34 if somebody even buys for long-term,

09:37 I think one should buy a partial bond here

09:39 and use any corrections of say 10, 15%

09:42 from the current level to buy the remaining quantity.

09:45 Overall, the situation is very positive

09:46 and this can go towards 1500, 2000 levels quite easily,

09:50 in my opinion.

09:51 And this is one of the most stable chemical names.

09:53 And as I said,

09:55 as a disclaimer,

09:56 we have been advising to our clients as well,

09:58 but we advise at much lower levels.

09:59 So buy a partial bond here,

10:01 partially when you can buy on declines.

10:03 - All right.

10:04 Next up, we have a question from Ramesh from Hyderabad.

10:07 He's talking about EPL.

10:08 He wants to buy into the stock at the current price.

10:12 The stock is currently up today in trade 1.5%,

10:15 around 203 rupees.

10:16 Ashish, what's your view for the longer term?

10:20 Is it a good time to get into the stock?

10:22 - Yes, I think so.

10:25 I think the stocks will do very well going forward.

10:28 I think it's a very well established player.

10:30 So I think yes, you can enter even at these levels.

10:33 - All right.

10:34 Yogesh has got a question on a few large caps.

10:38 In fact, he's listed them out

10:39 and this one's for you, therefore, Ashish,

10:42 on the fundamentals.

10:44 Tata Power, ITC, Tata Motors, Reliance Industries.

10:48 I believe that this is something that he wants to build

10:50 as part of his portfolio.

10:52 Would you suggest focusing on any of these in particular?

10:56 - Well, I think all of them look quite good.

10:58 I think Tata Power definitely going to get the advantage

11:02 of the re-rating which we are seeing in the power sector.

11:05 It is one of the better managed power sector players

11:09 and also going to various new additions in the power space.

11:14 ITC, I think, consolidation we have been for some time

11:17 is due for a breakout on the upside.

11:19 Reliance is one of the very safe large cap names.

11:23 And I think, which one was the fourth one?

11:27 Tata Motors.

11:28 - Yes, and Tata Motors.

11:29 - Tata Motors, I think Tata Motors,

11:32 if you haven't bought already,

11:34 I think Tata Motors is the only one I would be a little

11:36 cautious, the stock has moved a lot.

11:39 And though, yes, the outlook is very encouraging,

11:42 but I think Tata Motors, you can wait.

11:46 If a decline happens, maybe closer to 700

11:49 would be a great entry point.

11:50 I think right now, Tata Motors, out of the four,

11:52 Tata Motors is what you can, I think,

11:54 avoid for the moment.

11:56 Maybe buy or not decline or just let it be.

11:59 - All right.

12:00 Next up, we have a question from Vineet from Goa.

12:02 He's talking about a couple of counters

12:04 and I'll only take a few because there are a lot of queries

12:08 that are coming in.

12:09 He's talking about Alok Industries.

12:11 He's bought shares at 37 levels and he's talking about IRFC.

12:16 Now he's saying that the stock has run up

12:18 and today also we're seeing quite an uptick in IRFC.

12:22 So should they buy into it at these levels?

12:24 Gaurav, I'll come to you on this.

12:26 Alok Industries and IRFC.

12:29 - Well, first take up on IRFC.

12:32 It's an easy one to answer.

12:34 The reason being that we have been advising IRFC

12:36 from much, much lower levels

12:39 and we have been riding that trend.

12:40 But fresh entry at this point in time is not advisable.

12:43 The recent breakouts, the flag breakouts

12:45 on the weekly charts happened at 91, 92,

12:48 which is where we made fresh one more tranche of buying.

12:51 At 140, 150, I think at this point,

12:54 it does not garner a buy.

12:55 Where will the stop loss be?

12:56 The stop loss will be very deep.

12:57 If you look at the monthly candle,

12:59 it's moved up 40% so far in the current month itself.

13:03 So that is the kind of strong upside that we have seen.

13:07 The stop loss has become extremely deep.

13:08 So in my opinion, one should avoid buying railway stocks

13:11 or different stocks at this point in time.

13:14 When it comes to Alok Industries,

13:16 it has a very strong at 87, 37, 38.

13:20 And till the time we don't see this being crossed

13:23 and closed on a weekly basis, it will remain sideways.

13:25 So one can keep holding it,

13:27 but the fresh momentum for further upside

13:29 will happen on a weekly close above 37,

13:31 which once confirmed can push it to fresh lifetime high.

13:34 And it can go towards 55, 60 as well.

13:38 So the structure is positive at this point in time,

13:40 but momentum will pick up at higher levels.

13:42 - Okay, does the advice also extend Gaurav to rights?

13:48 We've got Geeta from Mumbai asking about this counter.

13:50 She's seemingly convinced that she wants to buy it

13:54 for a period of three to five years,

13:55 but she's wondering whether to buy it today's levels

13:58 or should she wait for a dip?

13:59 - So there are two questions.

14:02 One is about the space.

14:03 So we recommend a basket of five stocks to our clients,

14:06 which was RVNL, Ercon, IRFC, RailTel and Rites.

14:11 And we have been, like I said,

14:13 adding on transfers where it made a sense.

14:16 Sorry, we had earlier bought Rites at around 465,

14:20 where it gave a most recent breakout,

14:22 had a retest of the breakout and went higher.

14:25 So in my opinion, one should buy on declines.

14:28 That is where it would make more sense.

14:31 Second is more important question.

14:33 If somebody has a two year, three year horizon,

14:34 whether one should buy at any point in time?

14:36 The answer is no,

14:37 because even though you might have a good stock on your leader

14:40 and even though you might have a very long term picture,

14:44 two year, three year, five year,

14:45 just because you have time on your hand

14:47 does not mean you buy any stock

14:49 because there can be a decline.

14:50 And generally when the declines are sharp,

14:52 it follows by time correction.

14:53 So you may buy something,

14:55 it will not move say for another one year, one half year,

14:58 and then you will exit the stock out of the station

15:01 and then you will start moving.

15:02 So don't be in the hurry that,

15:04 I don't want to chase a stock.

15:05 That should not be the criteria.

15:07 There should be a proper rationale.

15:09 If it's coming to a support area or a breakout area,

15:11 then one should be buying, not with any random point.

15:14 So any railway stock or defense stock at this point in time,

15:17 I would wait for at least 10, 15% correction to enter.

15:20 - All right.

15:21 Next up we have a question from Akshay from Varanasi.

15:24 He's talking about MTAR Tech.

15:26 He's already bought shares at 2,400 levels

15:29 and his investment horizon for this one is three years.

15:32 So Ashish, for the longer term, for three years,

15:37 is it a good stock to continue holding on to?

15:39 - Yeah, certainly it is.

15:41 I think the company is doing very well

15:43 and I think we'll continue to deliver good performance

15:47 going forward, in my opinion.

15:49 So I think a good stock is caught at a good level

15:51 and we need to hold on.

15:53 - Fair point.

15:54 Gentlemen, we have to slip into a very quick break.

15:57 Viewers, we'll be back very quickly.

15:59 Do keep your queries ready

16:00 and we'll take more after this break.

16:02 Do stay tuned.

16:03 (upbeat music)

16:05 (upbeat music)

16:08 (upbeat music)

16:11 (upbeat music)

16:14 (upbeat music)

16:17 (upbeat music)

16:19 (upbeat music)

16:22 (upbeat music)

16:26 (upbeat music)

16:30 (upbeat music)

16:34 (upbeat music)

16:38 (upbeat music)

16:42 (upbeat music)

16:47 (upbeat music)

16:50 (upbeat music)

16:54 (upbeat music)

16:58 (upbeat music)

17:02 (upbeat music)

17:06 (upbeat music)

17:10 (upbeat music)

17:15 (upbeat music)

17:18 (upbeat music)

17:22 (upbeat music)

17:26 (upbeat music)

17:30 (upbeat music)

17:34 (upbeat music)

17:38 (upbeat music)

17:43 (upbeat music)

17:46 (upbeat music)

17:50 (upbeat music)

17:54 (upbeat music)

17:58 (upbeat music)

18:02 (upbeat music)

18:06 (upbeat music)

18:11 (upbeat music)

18:14 (upbeat music)

18:18 (upbeat music)

18:22 (upbeat music)

18:26 (upbeat music)

18:30 (upbeat music)

18:34 - Welcome back.

18:38 You're watching Ask Profit,

18:39 where we get questions answered on stocks.

18:42 And we've got the next one coming in

18:44 from Rajesh Maheshwari.

18:45 He's writing in from Singapore,

18:47 asking about HDFC Life.

18:48 He's got 300 shares at an average price of 374.

18:52 And he's asking, in view of the recent quarterly results,

18:55 does it make sense to stay invested or to exit?

18:57 He's got a short to medium term outlook.

18:59 And we've also got another question from Manohar

19:02 on a shorter timeframe,

19:04 whether or not to get in at this juncture.

19:07 So first question on the fundamentals to Ashish,

19:10 and then on the levels to Gaurav.

19:11 Ashish, what's the view on the stock?

19:13 - The stock has grossly underperformed

19:17 last two, three years.

19:18 I think mainly because the valuation had gone up a lot.

19:22 There is no doubt that HDFC Life is a very strong player,

19:27 very conservative, very well established

19:29 in the life insurance business.

19:31 And there's also no doubt

19:33 that life insurance business in India

19:35 has a long, long way to go.

19:37 So if you don't have any time constraint,

19:39 certainly you can hold on to it.

19:40 I think somewhere down the line,

19:42 you will end up making a lot of money

19:44 because the stock will get its mojo back

19:46 and it will be a great performer that time.

19:50 What time, I can't say.

19:51 But like I said, if time is not a constraint,

19:55 certainly it's a great stock to hold on to.

19:57 - Okay. What about the technical levels, Gaurav?

20:00 If somebody is planning to enter these levels

20:03 over the course of this week,

20:05 what is the key level to watch for?

20:07 - See Alex, if you look at the weekly charts,

20:10 you'll find that the stock has been trading in a range.

20:13 And when the stock is consolidating,

20:15 identifying the triggers for an up move or down move

20:17 becomes extremely difficult.

20:19 So far, if you see, for the last three years,

20:21 it has been taking very strong support at 480, 500 zone.

20:25 And there have been instances

20:26 where it has given up the entire gains around 750, 800.

20:30 So right now the stock is in the consolidation phase.

20:34 So I agree with Ashish that if somebody wants to buy,

20:38 then time should not be constrained.

20:39 If I am very time sensitive,

20:41 then SDS Free Life, ICC Potential,

20:43 these are the stocks that I would be avoiding

20:46 on a very immediate or short-term basis.

20:48 - All right. Next up, we have a question from Mohan

20:51 from Orissa.

20:52 He's talking about Yes Bank.

20:54 He bought the stock three years ago at 30 rupees.

20:58 The stock is currently around 25.

21:00 So not much has happened since then.

21:02 Ashish, would you suggest holding onto this stock

21:07 or maybe switching into some other stock

21:10 within the banking space?

21:12 - See, the thing is, Yes Bank,

21:16 I think certainly the turnaround has happened.

21:18 And if you look by any parameter,

21:23 the presence in retail plus the scale

21:25 at which they're operating,

21:26 the company, Yes Bank, should do very well.

21:30 The issue, I think, is that when the whole,

21:35 let's say the problems happened three years back,

21:38 then SBI was asked to maybe hold this company.

21:43 And the capital was,

21:44 cash capital was infused by various other banks.

21:46 So the whole capital has become fairly large.

21:49 It's much larger capital than what it was in earlier.

21:54 So therefore, the movement will be very slow.

21:57 If you're a very patient long-term investor,

21:59 then certainly hold onto it.

22:01 Because like I said,

22:02 I think the bank is certainly turning around

22:04 and improving its operations on all accounts.

22:07 But it'll take a very long time

22:09 for the stock to really start appreciating

22:11 because of the huge capital

22:12 which the bank is carrying now.

22:15 Otherwise, if you're not such a long-term patient investor,

22:18 then I would suggest you can move into some other bank,

22:20 Federal Bank, even IDFC first,

22:24 would be the banks in the private sector

22:26 which one can look at.

22:28 Otherwise, public sector banks are in great momentum right now.

22:35 So in the public sector banks,

22:37 you could look at a PNB or a BOB or a CanBank.

22:41 That would give you much faster returns.

22:44 Okay, fair point.

22:44 All right, that's a view on the banking space.

22:47 We've got a question on Pakka Limited.

22:49 And this is a short-term question.

22:51 Hari from Chennai is asking about this.

22:53 If you aren't familiar with this particular counter,

22:57 it was earlier called Yash Papers, I believe.

22:59 And Gaurav, this one's on a short-term view.

23:02 Would you suggest a fresh entry at these levels?

23:08 See, stock returns are very sharp upside.

23:10 But if you look at the last few weeks,

23:13 it's a consolidation stock.

23:16 And when the stock is in consolidation,

23:17 again, like I said,

23:18 finding triggers can be tricky.

23:20 So if somebody wants, can give a surplus of 245

23:23 and try to nibble around.

23:24 I don't see spike in volumes.

23:25 I don't see spike in prices.

23:27 And I don't see spike in momentum mitigators.

23:29 It is just that if somebody has made up a mind

23:31 that I want to be in the stock

23:32 and I don't want to go somewhere else at this point in time,

23:36 then I think you can buy at 245.

23:38 But if I were in the position,

23:39 then I would rather wait for some other stocks

23:41 that are giving breakout, fresh breakouts,

23:43 rather than buying a stock which is in the consolidation manner.

23:47 All right.

23:48 We have another question from the banking space.

23:51 This one's Jammu and Kashmir Bank.

23:53 And Khurshid has already bought into the stock at 52 levels.

23:57 The stock is currently trading at around 133 levels.

24:00 So quite a considerable profit from there.

24:03 Ashish, would you have a view on this?

24:05 He wants to know the next one-year target.

24:10 See, J&K Bank, I haven't tracked.

24:12 So I would not like to comment on it.

24:14 Okay.

24:14 Gaurav, next one-year target,

24:17 would you have something on Jammu and Kashmir Bank?

24:19 Yeah.

24:20 So we advise a lot of these small cap PSU banks

24:24 to our clients in the basket of stocks,

24:27 like J&K Bank, PSB, Bank of Maharashtra, Central Bank, IOB.

24:33 So these four or five banks, we had clubbed together

24:35 and asked our clients to put a small portion of their portfolio

24:37 in these names, which means they can turn into multi-bagger stocks.

24:40 We also recommend around 50, 60-something.

24:44 It's moved up.

24:45 So our one-year target, which was around 110-120,

24:48 it has already been met.

24:50 So if somebody wants to ride, one can keep riding with trading stop-losses.

24:53 One can keep a stop-loss of say 110 and keep riding.

24:57 In the current move, it can go,

24:59 the next previous swing high is anywhere around 155-160.

25:03 That is where it can go.

25:04 That will be the next addition.

25:05 So I would not say it's a one-year target as such,

25:08 but this momentum can take it to those levels.

25:10 But keep a trading stop-loss with you.

25:13 For any reason, if there's a correction sort of coming in,

25:15 you should not be in the receiving end of the market.

25:17 So keep a stop-loss of 110 and ride the trend.

25:20 Okay.

25:22 We've got a question coming in from Mr. K. Reddaya from Andhra Pradesh.

25:28 And he's asking about Life Insurance Corporation of India,

25:31 which incidentally has just crossed its listing price today, I believe.

25:36 It's still far away from, or not too far away,

25:38 but it's still not reached its issue price.

25:41 Ashish, question on Life Insurance Corporation of India

25:45 on the fundamentals.

25:45 You've spoken about HDFC life,

25:47 but would you say that LICs also buy at these levels?

25:51 Well, I wouldn't say buy at these levels.

25:54 I'll tell you why.

25:55 Because I think the issue itself came at a very steep premium,

26:01 although they had reduced the premium and they had done various other things

26:05 to improve the fundamental outlook.

26:09 But still, I think the issue was very expensive.

26:12 And although the stock has disappointed investors,

26:16 although the stock has recovered and come very near the issue price,

26:21 I would at best say that those people who have managed to get into this stock

26:25 at lower levels, and I had a disclosure that I too bought the stock at around 700 rupees.

26:30 One can hold on now, but I would not say a fresh entry at these levels,

26:36 because I think the stock would face a lot of pressure close to its issue price.

26:41 A lot of investors would be waiting to get out of this.

26:43 And also, I think it is expensive.

26:45 I mean, I think the insurance business we are very bullish on.

26:49 I think it's very expensive.

26:50 For a fresh entry, I would wait either for some more time to pass

26:54 and some more clarity on the way forward for the company to emerge

26:58 or the stock to correct again and come to anything less than 800 rupees.

27:02 That would again give you a good entry point in LIC.

27:06 And at present, it's best to hold for someone who's bought at lower levels.

27:10 All right. Next up, this one's from PK Bandhopadhyay.

27:14 And he's talking about India Hotels.

27:16 Now, he doesn't mention the buy price.

27:18 He's already bought into the stock, though.

27:20 And his time horizon is very short period.

27:23 So, Gaurav, would you suggest holding on to this stock and book profits,

27:29 maybe in the next one, their time period is like a week.

27:32 So, what would you suggest to Mr. PK?

27:36 I would suggest booking profits.

27:38 And this is because we have been advising our clients

27:41 who are playing very short term to keep booking profits.

27:44 We don't know when the markets will turn around.

27:47 And whenever the profits are on the table,

27:49 we are advising our clients to keep booking profits

27:51 so that their exposure is reduced, their risk is also reduced.

27:54 And the volatility component may also be high.

27:56 So, we may not see a very major fall.

27:58 But even if there's a volatility, it will come, take a rest of the process and go higher.

28:02 So, to go with all of those aspects,

28:05 it's better to book the profits every time, other than a very short term.

28:09 A quick question on Suzhla on energy.

28:11 We've got Ashfaq, Dr. Ashfaq from Pune,

28:14 who's asking about this particular counter.

28:16 And he's not bought at lower levels.

28:18 In fact, he's bought at levels of 70, I guess, many, many years back.

28:23 The question is for you, Ashish.

28:24 We've seen a significant turnaround in this particular counter.

28:27 But what advice would you give to somebody who's bought at higher levels?

28:32 I think we can continue to hold on.

28:33 The good news is that, you know, the business has actually turned around very significantly.

28:40 The company has become debt-free or virtually debt-free.

28:45 There's a new management in place.

28:47 And because of being debt-free, the financials are really improving.

28:51 And the ground reports suggest that their product is actually very good in great demand.

28:57 And the industry itself is doing very well.

29:00 So, you know, there is a significant improvement.

29:03 So, I would not be surprised if in about a year, year and a half's time,

29:07 he gets back his buying price.

29:09 Certainly hold on at the present juncture.

29:12 Right. That's all the time we have for today on this edition of Ask Profit.

29:16 Thank you so much, Ashish and Gaurav, for joining us and for answering so many questions for us.

29:21 And viewers, we'll be back tomorrow, same time, 11.30 a.m.

29:25 So, do keep writing us your queries.

29:27 We'll see you tomorrow.

29:29 ♪

29:58 ♪

29:59 ♪

30:27 ♪

30:45 ♪

31:13 ♪

31:23 ♪

31:51 ♪

32:01 ♪

32:21 ♪

32:49 ♪

32:59 ♪

33:09 ♪

33:37 ♪

33:47 ♪

33:57 ♪

34:12 Hello and welcome. This is Hot Money.

34:14 I am Agam Vakil and with me is Hiral Dharia.

34:17 Well, this show we take you through all the stocks which are buzzing in trade.

34:22 And of course, for now, take a look at how markets are panning out.

34:26 Well, flat at the moment as far as the Nifty and the Sensex go.

34:30 We have seen a relatively quiet day of trade for now.

34:33 And especially the Bank Nifty, which of course will be in focus on account of HDFC's earnings,

34:38 which potentially could come through towards the end of the session, most likely post-market hours.

34:44 That's where all the activity is slotted to be held.

34:48 But for now, of course, we're continuing to see a lot of traction with respect to the benchmarks.

34:53 And in the benchmarks, we do have a handful of gainers out there.

34:59 To take a look at BPCL, which is up around 4%, we have Titan, which continues to advance by as much as 2%.

35:06 Hero Motocorp has once again gained traction.

35:09 And ONGC is the other way, which is up and about advancing by around 1.5%.

35:14 Also, I want to address quickly what's happening in the broader markets.

35:17 Well, there have been a handful of names which are up and about on heavy volumes.

35:21 Do remember that IRFC was one of those counters which did see a sharp up move yesterday.

35:27 And it does seem like it's moved and advanced by 10% for yet another day, once again on big volumes.

35:34 Yes Bank is the other one. That's up and about by as much as 5% as well.

35:39 And Paytm advances by around 4% as we speak.

35:42 That's as far as some of these names go in terms of gainers.

35:46 And on the losing end, we don't have too much on an absolute basis, but we do have Oracle Financial Services,

35:52 which declined by around 3%.

35:54 Vodafone Idea also down by just as much, and 2.5% decline for Syngene International.

36:01 Very quickly, let's address the advance-decline ratio.

36:05 At least about a couple of hours ago, the advance-decline ratio was nearly 1 is to 1 and has just changed.

36:11 That's something that we need to ascertain because that is largely what gives you an idea about the sentiment of the market.

36:19 And for now, of course, as you can see on your screen, the declines have ever slightly pipped advances at the moment as we speak.

36:29 So it's still a 1 is to 1 ratio, but it's gone in favor of the declines.

36:34 And that perhaps could be something of a challenge, at least in the near-term here.

36:39 Right. So this is going to be interesting to watch out for as well, Agam, from here on.

36:44 But let's actually shift focus to stock-specific action as well.

36:48 A couple of counters that we will be talking about in today's day of trade.

36:52 Aster DM, that stock has seen some smart moves.

36:55 Angel One, defense companies are in focus.

36:58 IRFC from the PSU back.

37:00 PNC Infra on the back of an order win, as well as Ajouti CNC on the listing.

37:05 In fact, one more stock I would want to add to the kitty is the LIC as well, which has crossed the listing price, but it's still away from its IPO price.

37:14 Joining us on the show to discuss these stocks, we have Sunny Agarwal, head of fundamental equity research at SBI Cap Securities.

37:20 Sunny, good afternoon and welcome to the show.

37:22 Before I come to you with a specific counter, let's look at Aster DM on the screens.

37:27 The stock has actually hit a life high in today's day of trade.

37:31 Now, they're clearly considering a dividend and this is after the stake sale in their Gulf business.

37:37 My colleague Varsha joins us to give us more about what is this all about?

37:41 What is the kind of dividend that they're issuing? Varsha, over to you.

37:44 Good afternoon, Hiral.

37:45 So, as you rightly said, so Aster DM, if you see the share price has surged nearly 13% to hit its lifetime high.

37:51 Now, companies said, now this is on the back that companies said it will be distributing a majority of its proceeds for its stake sale in Gulf business.

37:58 Also, the board will consider the distribution of 70% to 80% of the upfront consideration that is of 903 million US dollars as a dividend to a shareholder,

38:08 which will be in the range of rupees 110 to 120 a share.

38:12 Now, this is on the back that the company does not require the proceeds to fund its growth plans in India.

38:17 Also, if you see in 2023, now let's just have a little background,

38:21 the Dubai based Aster DM Healthcare has approved the sale of business in the GCC region to Alpha GCC Holdings for 1 billion US dollars.

38:30 And of this 903 million US dollars will be received at the closing of the transaction and rest will depend on the fulfillment of the conditions.

38:37 Now, if you see the analyst recommendation of all the seven analysts tracking the company,

38:42 all have a buy rating with an upside with a return potential of negative 2%.

38:47 And if you see the stock performance in last one year, company has given a return of almost 92%, while the six month performance has been 38%.

38:55 Thanks, Varsha, for getting us the details. Clearly, if you see from a 12 month perspective as well, nearly the stock has doubled.

39:03 Sunny, let me come across to you with regards to an Aster DM.

39:06 How are you looking at the PharmaPact closely and specifically with regards to Aster DM now that we are going to look at two different entities as well?

39:16 Yeah, good afternoon. So definitely, this demerger was already in plan and discussed with the state and now it is getting executed.

39:27 And I think on a per share basis, that dividend payout will be very healthy to the tune of maybe 90 to 100 rupees per share.

39:35 So that's a clear cut, a very decent 20% dividend yield till the time record rate is announced.

39:42 And moreover, what I feel is that demerger will allow shareholder to get a direct of your play India story on hospital expansion.

39:52 And on hospital side, India operations has been doing pretty well, I think, during the last three, four years there.

39:59 We have seen a robust growth across the top line as well as on EBITDA front.

40:03 Right now, India business is generating around 450 crore, 450, 480 crore kind of EBITDA and ROE, ROCE of 20%.

40:12 So I think the demerger move is in line with expectation and that is the reason we are seeing a positive uptake in the stock price.

40:21 If somebody wants to invest or deploy fresh money in the Aster DM, one can ride for the dividend play, obviously,

40:28 but one has to keep in mind that post dividend exit, we may see correction also in the stock price.

40:34 Taking call on business, obviously, the business, entire hospital sector is doing well.

40:39 And so as the Aster DM also.

40:41 So if somebody is a medium to long term investor, he can definitely look at the company and can follow buy on this strategy.

40:47 Sure. Well, that's your view as far as Aster DM is concerned.

40:51 Very quickly, I want to address what's happening with KIOCL.

40:55 We understand its pellet unit in Mangalore will resume operations.

40:59 That's the latest coming in as far as KIOCL is concerned.

41:02 But we move on and talk about Angel Broking, possibly one of the biggest movers in not just the last one year,

41:09 but potentially the last couple of years.

41:12 And this is, of course, on account of increased number of traders that we have seen.

41:18 And, of course, many, many market participants that come into the fray,

41:22 which is why your operational numbers have looked substantially higher for Angel Broking over the course of the last one year.

41:28 But while the revenue has grown, we are looking at some of the challenges with respect to margins.

41:35 I'm going to get in my colleague, Harsh Setta, to give us an update on how the numbers have panned out and what the challenges here are.

41:42 Harsh. Well, yes, Agam. So you are seeing good numbers on a year on year basis.

41:47 But the better way to look at this is probably sequentially or seeing a 1% uptake on a quarter on quarter basis where revenue is concerned.

41:55 EBDAT is actually fallen around 13% sequentially. That's on the back of higher OPEX.

42:01 Let me talk a bit more about OPEX. They've been spending or Angel One has been investing, spending,

42:06 however you want to put it, on more tech as well as more importantly on customer acquisition.

42:12 That's something they've been spending on.

42:13 They've also suggested that they have been switching with regard to some of their plans, which they have sold to current customers.

42:23 And that is also probably what a modification of the intraday structure is probably also what is leading to slightly muted growth where EBDAT is concerned.

42:33 And profit after tax is actually down 14%, largely in line with that EBDAT number.

42:39 You're looking at client base, though, which has gone up 14% sequentially. That's a positive.

42:44 Clients now just below the two crore number, almost a 20% market share overall.

42:51 And you're looking at, you know, Demat accounts, which are up 80 bips on a sequential basis, 241 bips on a year on year basis in terms of market share improvement.

43:01 So you are continuing to see market share improvement and gains coming in here.

43:06 Active clients have also gone up. They are at 53 lakhs.

43:09 So some of those trends playing out, but on an otherwise softer quarter where the operational update is concerned from a business standpoint.

43:17 All right, Harsh, thanks so much for getting us those updates on Angel Broking or Angel One, as it is called right now.

43:24 Well, Sunny, your view on Angel One or if you track this one and what is your assessment on the broking industry?

43:32 Yeah, definitely a remarkable shift from a traditional broker to a digital platform as far as Angel One is concerned.

43:39 During last year, we have seen a massive increase in profitability from maybe annual company.

43:45 If I remember, companies used to generate 200 crore kinds of annual profit three, four years back.

43:51 And right now, annual revenue is close to 1000 crore.

43:54 And what I believe is that this quarter, top line is in line with expectation only issue is with front loading of costs pertaining to the newly set up asset management business.

44:04 At the same time, they have added manpower to at the same time they have added manpower and they have spent on advertisement to garner more market share as far as new account acquisition is concerned.

44:17 So the benefit of all this will be seen maybe six months down the line.

44:22 And that is the reason we have seen that the path is a little bit subdued as compared to their growth in the top line.

44:27 But having said that, if somebody wants to bet a fresh money on Angel One, what I feel is that currently stock is trading at 30 times price to earning multiple.

44:34 So maybe a further 10 or 15 percent correction will offer a better risk reward ratio as far as Angel One is concerned.

44:42 All right. That's your view on Angel One. And on that note, we slip into a short break.

44:47 But on the other side, we talk about more stocks we have on our radar. Stay tuned.

44:52 [MUSIC]

45:02 [MUSIC]

45:12 [MUSIC]

45:22 [MUSIC]

45:32 [MUSIC]

45:42 [MUSIC]

45:52 [MUSIC]

46:02 [MUSIC]

46:12 [MUSIC]

46:22 [MUSIC]

46:32 [MUSIC]

46:42 [MUSIC]

46:52 [MUSIC]

47:02 [MUSIC]

47:12 [MUSIC]

47:22 [MUSIC]

47:32 [MUSIC]

47:42 [MUSIC]

47:52 [MUSIC]

48:02 [MUSIC]

48:12 [MUSIC]

48:22 [MUSIC]

48:32 [MUSIC]

48:42 [MUSIC]

48:52 [MUSIC]

49:02 [MUSIC]

49:12 [MUSIC]

49:22 [MUSIC]

49:32 [MUSIC]

49:42 [MUSIC]

49:52 [MUSIC]

50:02 [MUSIC]

50:12 [MUSIC]

50:22 [MUSIC]

50:32 [MUSIC]

50:42 [MUSIC]

50:52 [MUSIC]

51:02 [MUSIC]

51:12 [MUSIC]

51:22 [MUSIC]

51:32 [MUSIC]

Ask Profit | Angel One Declines In Trade | NDTV Profit

Category

Transcript

Recommended