- #LaurusLabs' shares fall 10% on Q3 results
- What does it mean for shareholders?
Get all your stock-related queries answered by our technical and fundamental guests with Alex Mathew and Smriti Chaudhary on Ask Profit. #NDTVProfitLive
- What does it mean for shareholders?
Get all your stock-related queries answered by our technical and fundamental guests with Alex Mathew and Smriti Chaudhary on Ask Profit. #NDTVProfitLive
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TVTranscript
00:00 Thanks so much for joining in. You're watching Ask Profit on NDTV Profit and my name is Alex
00:04 Mathew with me is Smriti Choudhury. We'll take you through the next half an hour or
00:08 so of trade. This show is primarily aimed at getting you answers to all of your stock
00:12 related questions. So if you've got them, you should send them to us on any one of our
00:17 social media platforms or indeed on the WhatsApp number that is at the bottom of your screen
00:21 as we speak. Now, we've got Ashish Maheshwari of Arihant Capital as well as Gaurav Bissa
00:28 of Incred Equities joining us on this program. Thank you so much to the both of you as always
00:33 for joining in. Let's very quickly take you through what's happening with the markets,
00:36 right? You have another day of selling and in fact you have a turn in the texture of
00:43 the market and you have the nifty 50 that's trading with cuts of about seven tens of a
00:47 percent or thereabouts and it's not too far away from the low point of the day. You have
00:54 the benchmark indices as well as the mid. So the broader market indices also losing
00:59 ground but to a lesser extent you have the mid cap index that's down about four tens
01:02 of a percent or thereabouts and you have the small cap index that's actually up about two
01:06 tens of a percent or so. But the nifty bank continues to lose ground and HDFC Bank as
01:12 well continues to lose ground. The nifty bank down as much as one percent as we speak. From
01:17 the broader markets you have a few stocks that are outperforming in a big way. One of
01:21 them is rights up as much as 11.8 percent right now. IFB up nine percent. Metro Brands
01:27 also doing particularly well and on the other end of the spectrum you have one particular
01:32 stock that stands out and we're focusing on that. Loris Lab down about 9.2 percent at
01:38 this juncture on the back of earnings. Of course we had a conversation with the management
01:42 on this platform and you can find that on the website NDTVprofit.com or indeed on any
01:48 one of our social media platforms on YouTube as well. But we're going to focus on Loris
01:53 Lab Smriti today as well at the start. Why was it such a big disappointment? Well it
01:58 has been a disappointment for the last couple of quarters actually but the management commentary
02:03 remains strong. But it seems like the market is not buying into that commentary anymore.
02:10 If we look at what the results were the revenue fell about 22 percent this quarter to 1194
02:16 crores EBITDA down 55 percent to 181 crore. Margin contracted over 1000 points actually
02:24 1100 points 15 percent versus 26 percent and net profit down 88 percent to 23 crores. Now
02:32 if you look at market management commentary on this as Alex mentioned that he spoke to
02:37 NDTV Profit a while ago and he spoke about how he expects the margins to increase to
02:43 about in the range of 20 percent. So currently it's at 15 percent and it will go up to 20
02:48 percent. That's what he's expecting. He's expecting the second half of the year that's
02:52 Q2 Q3 plus Q4 to be much better than the first half. That means they have to do substantially
02:57 well in the fourth quarter to cover up that. But all of this aside let's take a view from
03:04 our guest today which is Ashish. Tell us how do how are you viewing this. Clearly the management
03:09 commentary still remains strong on Loris Labs. Loris Lab management commentary is concerned.
03:17 Even last two quarters also we have seen that in spite of posting below expectation numbers
03:25 management was quite upbeat on the future prospects and that is where we always saw
03:30 some rebound in the stock also. So from 290 stock almost went to 440 also. So clearly
03:39 set of disappointing numbers and the series continues. In my view when you are having
03:45 so many other stocks like Ciplas and Dr. Abies and BBs and which are performing much better
03:52 why to buy a stock which is you know continuously giving poor set of numbers. So in my view
04:00 things are not going right still for Loris Laboratories whatever the cap ex they did
04:05 in animal health care where results are still not forthcoming as well as their other APIs
04:12 also. So a higher base effect is also playing a spoiler sport for Loris Lab. So no wonder
04:19 brokerages has given as low as target of 250 now for Loris Lab and I also continue to remain
04:25 bearish as far as Loris Lab is concerned. Okay fair point. Alright so that's the view
04:30 on Loris Lab and Ashish not too enthused either by the management commentary of course it
04:37 is going to take quite a bit for the company to achieve what the management has set out
04:42 at 1300-1400 crores of top line as well as an EBITDA margin expansion of close to 5 percentage
04:50 points which is nothing to sneeze at. Let's jump straight into the questions that we have
04:56 got and the first one that we will take today is coming from Tanya and she is writing in
05:01 from Ghaziabad. She is asking about a couple of counters and one is Maltech packaging and
05:07 the other is Vedant Fashions. She is thinking of buying this for a period of 6 months. I
05:13 will go to you Gaurav on the charts on these 2 counters. Would you recommend a fresh entry
05:18 for a period of 6 months? Good morning to you fellow panelist and viewers. First and
05:26 foremost let us first discuss about the time frame that has been talked about rather than
05:32 the stock itself. This 4 to 6 months I think this is going to be a very critical area.
05:37 The reason being that we have multiple events lined up, Union elections and you have I don't
05:43 remember you have US elections and there is going to be incremental volatility. On top
05:47 of that you have scenario in mid caps and small caps have run up 60-70% in last 1 year
05:53 or so. So you have 2 major factors that can cripple your profit potential going forward.
05:58 For me what we are advising to our clients as well at Intred is that either you have
06:03 a 1 or 2 months period where you can churn your portfolio or you have a minimum 1 year
06:08 horizon then you can start building a portfolio because this 4 to 6 months I think this is
06:11 going to be a pain point for lot many market participants and on that premise I will say
06:15 you will have to work around not just on the stocks but your holding period as well. To
06:20 answer the question, Multic packaging I think this is something one should avoid at this
06:24 point in time. If you look at the weekly charts it is currently trading below the 55 exponential
06:28 moving average on the weekly charts, 81 exponential moving average. So unless we don't see a spike
06:32 coming in and it comes and crosses above 900 and 10 for me this is an avoid at this point
06:38 in time. Alright, next up we are talking about campus activewear. This one is from Mohit.
06:43 He has already bought into the stock at slightly elevated levels, 289 and he can continue to
06:50 hold it for 2 years. Now Ashish would you suggest holding on to this? The stock trajectory
06:55 for this one has been in the last 1 and a half year has been pretty dismal actually.
07:02 Would you suggest holding on to this? I am not that much impressed as far as campus activewear
07:09 performance is concerned. Even when we saw the last September quarter profit just evaporated
07:16 where no profit compared to 30 crore kind of profit which they did last year. So it
07:22 is still overpriced in my view. Instead of this red tape is a better bet in this particular
07:28 segment if you want to still remain in this particular segment. So campus is a sale in
07:35 my view, book losses and shift to a better stock like that.
07:41 Just a quick update to viewers, we will try and take one question and if you are asking
07:45 multiple stock queries then we will have to focus on just one. Of course, if time permits
07:51 we will come back to it. We have got a question coming from Sanjay and he has bought Zee Entertainment.
07:56 We focused on this earlier in the week when the stock price dropped quite substantially
08:00 and you are probably aware of the fundamental developments there. He has bought at a level
08:04 of 260 which is very elevated especially taking into account the drop in the price just this
08:09 week. The stock is currently trading about 3.5% lower at 300, sorry 160 apologies. Since
08:16 this is a short term query I will get a view on the technicals, but there is a significant
08:21 fundamental development as well. So first on the fundamentals I will come to you Ashish.
08:26 If you have got a viewer that is holding at elevated levels, would you suggest an exit?
08:31 He has got only a 3 month time frame. In 3 month time frame I don't think things will
08:38 change so drastically that Zee from 160 will again go to 260. Because now there is so much
08:45 court related battles will come as far as Sonuji issue is concerned and some or other
08:51 negative news flow will keep on hitting the stock. So my suggestion will be to exit this
08:56 stock and instead of this look at a stock like Santivi which can give you better returns.
09:02 But I am not that optimistic that Zee can get 50% kind of return in next 3 months for
09:09 sure. Fine. As an update he has actually asked me to prioritize his other questions. Very
09:16 smart I must say Sanjay. So I will make an exception and do that right now. He is asking
09:21 about IDBI bank as well as PNB. So the question is back to you. On the fundamentals Ashish
09:26 would you suggest fresh entry into these counters? Yes, IDBI bank you can still enter and PNB
09:33 is again a performer stock as far as PSU basket is concerned. So both these stocks surely
09:40 you can look at to re-enter or to make a fresh entry. I am expecting at least 20% more upside
09:48 possible in IDBI as well as PNB in this year. So both are good stocks. Alright. Next up
09:54 we are talking about MapMyIndia and this one is from Sumesh. Sumesh, he has bought the
10:00 stock at around 1000 levels. It has doubled since then and I am not sure if he wants a
10:06 long term or a short term view. But let us look at the short term trajectory for this
10:10 one. Gaurav, would you suggest holding on to this one? Price is still limited. So yes,
10:19 if it is for short term one can definitely hold. The listing price was around 19.15.
10:27 That was the high that was made around listing, around 2 days here and there. And it has seen
10:31 a swing high breakout. It is sustaining those levels. So one can hold on. One can keep a
10:34 stop loss of 18.70 and hold on. If this is sustained, it can go and try to create a fresh
10:40 life. Alright. And fundamentally how does this one look, Ashish? Fundamentally, company
10:46 is doing pretty well and there is a reason stock has doubled from the IPO price and was
10:53 slightly down from 2300 rupees 52 week high what stock is made. But consistently performing
10:59 well. Company, 233 crore profit they are making quarter over quarter debt free status. So
11:06 in my view, as now mid cap IT stocks are in demand, so companies like CFO will do well.
11:13 So you can remain invested for a target of 2300 in next 6 months. We have got a question
11:22 on State Bank of India and this is coming in from Vasu. He has bought futures, Feb futures
11:30 at 620 levels and his target is 635 in the coming weeks. Is that possible is the question.
11:39 Gaurav, how does it look? Well, if I hear correctly, he is playing for target of 720?
11:47 No, he is playing for, so he has got a target of, he has bought at 620 and he has got a
11:53 target of 635. Not a very sharp upside from the current market prices, I understand it.
11:58 Yeah, so one can, he can definitely hold if you look at the two things. One, if you look
12:02 at isolation, SBI is looking quite interesting. 610, 615 was a breakout area. It is sustaining
12:08 above the breakout area. Second, Bank Nifty seems to be in the support. There is a triple
12:13 divergence on 30 minutes chart in Bank Nifty and it is trading in a support area of 4400,
12:19 500. So there is such thing we can see a bounce in Bank Nifty as well. So one, the stock itself
12:24 looks good. Second, the index which it is a part of that is also looking very good.
12:29 So in that premise, it can go towards 636, 635. All right. Next up, we are talking about
12:34 DMart. It came out with its result a couple of days ago as well. This one is from Balaji
12:39 from Adurai. He wants to know if he should, and he bought the stock at 4100 levels. If
12:45 you look at the stock, it's below that currently. Should he continue holding onto it or should
12:50 he get out of the stock? Ashish, what would you suggest?
12:52 Well, essentially, it will remain invested. I think whatever result is left with the development
12:58 right there, they are already now getting factor in the stock as also it raised from
13:05 highs of almost 4200 rupees. So remain invested here. But one thing is that now we are not
13:12 expecting that the stock will touch those historic levels of 5000 and all. So 4200 will
13:19 be a good level to exit because the way there is some slowdown in their new store openings,
13:25 etc., because of higher real estate cost. So whatever the growth was there in previous
13:32 year may not be there in coming year. So the higher valuation which Avenue Supermarket
13:38 used to drive may not be there. But exit at your buy price will be a better strategy and
13:43 look for some alternative investment at that point of time.
13:46 All right. That's a view on Avenue Supermarket or DMart. We have to slip into a very quick
13:51 break. Viewers do stay tuned. We'll be back on the other side to ask more of your questions.
13:55 Thank you.
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17:50 Welcome back. You're watching Ask Profit. Let's quickly take up the next one. This one is from Satish Kumar.
17:56 And he's talking about Nestle India. And Nestle seems to be a very popular stock within our viewers.
18:02 We get questions on this almost every day. He got a stock at 2800 levels, which is higher than the current market price.
18:11 And he has a holding period of about three years. Ashish, would you suggest holding on to this one?
18:17 Because the numbers do seem a little upbeat on this stock.
18:22 One of the best performer FMCG stock is Nestle. And post this split, again, some volumes have also increased in the stock and investor participation is also building up.
18:36 So, my suggestion will be, in fact, to add more at 2400 levels. If you have bought at 2700 level, which was almost 50-week high, 2400 will be good entry level also in Nestle.
18:49 Fundamentally, nothing wrong with the company. But slow and steady stock this is. And it will give you very good returns going forward also.
18:58 But wait for some more correction.
19:01 We've got the next question from Vipul Gandhi. He's asking about Sterling and Wilson, which he's bought at levels of 275, 100 shares.
19:09 And he's got a long-term time frame. And so, therefore, no rush to sell the stock. He's doubled his money.
19:15 The question is, does he hold on? And what are the fundamentals that are likely to affect the stock?
19:20 Coming back to you, Ashish, on this one. What's the advice?
19:24 My advice will be, again, to remain invested in this stock. If you see, fundamentally, the kind of EPC business they are having and solar is in theme now.
19:36 And just, I think, 15-16,000 crore market cap company now is Sterling and Wilson.
19:41 And post Reliance Group acquisition, fortunes have changed for this company. So, remain invested here for a target of, in fact, 800 rupees in one year.
19:52 All right. Next up, we're talking about CESC. And this one's from, I can't see them.
19:58 Okay. Rakesh Jain. He has already bought the shares at 130 level. And he wants to know if he should sell it.
20:05 Gaurav, would you suggest selling the shares right now?
20:09 No, the stock witnessed a very strong breakout. So, if the idea is to buy and hold for 15-20 days, then probably you can keep up on 25 stop loss.
20:18 You can hold on. It may not move that much. But if somebody can hold for, say, one year, maybe beyond that, then it has a multi-year breakout.
20:27 So, in my opinion, it can easily go towards 200. And if that is what one can expect and keeping one year, one and a half in mind, then one can hold.
20:36 So, depending upon how much the time period can hold, one can act accordingly.
20:42 Got it. We've got a question coming from Raghuram Pathro. And he is asking about a couple of stocks, Orient Green, which he has bought at levels of 22.
20:52 And that's 5000 shares. And he has also got Adani Power, which he has bought 500 shares of at levels of 300.
21:00 He has got a long-term view. Let's go across to Ashish on the fundamentals for these two counters.
21:07 Ashish, you kind of also alluded to the power space. But specifically with regard to these two counters, would you suggest holding on for the long term?
21:16 Yes. Both these counters, you can continue to remain invested for long term also.
21:24 Orient Green as well as Adani Power that you are holding. Because again, fundamentally, things have changed quite a lot from power producer point of view.
21:35 And Adani Power has already given fantastic return. Orient Green also near 50 degree high.
21:40 And this is a sector along with your regular railway defence team, power is number third team, which will continue to do well.
21:47 So, I am quite upbeat as far as fortunes of the sector is concerned. Remain invested.
21:52 Alright. Next up, we're talking about Indus Towers and Shilpa Medicare. This one's from Satya.
21:58 We saw Indus come out with its results yesterday and turn into profit, but still the market's not taking...
22:05 market's still reacting negatively to it. Would you suggest accumulating these two stocks, Ashish?
22:12 Yes, Indus Towers, I think the only thing is that the stock has moved quite a lot in the last maybe one month.
22:21 Your chart is showing 20% upside. So, those people who have bought this stock in good result expectation will surely book some gains.
22:29 And this is what's happening. But in my view, Bharti, Indus Towers will be two stocks to watch for in 2024.
22:37 And they are going to give fantastic returns. So, use such foil to add in your portfolio, both Bharti as well as Indus Towers.
22:45 And Shilpa Medicare?
22:47 Shilpa Medicare again, the stock is in some consolidation mode. And again, I'm not that bullish as far as Shilpa Medicare is concerned.
22:57 Maybe other stocks in the sector have good potential to give higher returns than Shilpa Medicare.
23:03 So, Shilpa Medicare is avoided in my view. If you want to take a bet in the sector, Mankind Pharma will be best bet.
23:11 Okay. Alright. So, that's the view coming in on Shilpa Medicare. Viewers to take on Mankind Pharma.
23:18 Let's talk about this next question from Asif. And he is asking about Tanla Platforms which he has bought at levels of 1580.
23:26 Can he hold it after the recent results? When can it break even or rather when can he achieve his?
23:32 So, I'm not sure whether it's on the fundamentals or whether he is talking about his share price.
23:37 He has bought at 1580. Whether or not he can reclaim the price based on the fundamentals.
23:42 I will very quickly get a technical view and then I'll go to Ashish on the fundamentals.
23:46 Gaurav, what's the view on the charts?
23:48 If you look at Tanla on the weekly charts, it's been trading in a range. There was a very strong huddle at 1295-1300.
23:56 And it has an immediate, I would not say immediate, but it has a decent support around 1080.
24:01 One can hold using this as a stop loss. It has a moving average support as well.
24:07 But I don't see a very beautiful pattern evolving. It's just that the stock is stuck in the range and it's approaching the support area.
24:14 That's the only silver lining for the stock.
24:16 Ashish, quick view on the fundamentals. Sadhana Platforms, what would you do if you bought at higher levels?
24:22 The problem is the growth is not there. As far as Tanla Platform quarterly numbers are concerned,
24:28 this is the reason the stock has corrected quite a bit.
24:31 I see this in Shardaji, buy Root Mobile which is in the same space and available at an attractive price.
24:37 Their open offer may also come very soon from Proxima's group from Belgium.
24:43 So, better to buy Root Mobile and sell Tanla.
24:47 Alright. Next up we're talking about Patel Engineering.
24:50 This one's from Michael and he wants to know if he should enter the stock at this juncture.
24:56 His time horizon is six months. Gaurav, would you suggest entering right now?
25:00 No. For me, like I said, if the time frame should be larger,
25:05 the stocks that can give returns in a fast manner is what one should be looking at.
25:10 Okay, fair point. We've got a question coming from Michael.
25:14 He's writing in from Mumbai and he's, okay, so this is Patel Engineering, right?
25:17 The next question is from, well, not giving me, oh, Lavish.
25:22 Lavish from Indore asking about rights and what a stock this is, right?
25:26 He's bought at levels of 644 and he's looking for a six-month target. Gaurav, what's your view?
25:31 See, the stock has run up a lot. If somebody has already bought,
25:38 like we have been advising our clients to book partial profits in their exposure to a railway.
25:43 And the same goes for this gentleman. If he's already bought,
25:47 I would recommend booking out partial profits and then ride.
25:50 But if somebody wants to buy fresh, totally avoid.
25:53 All right. And that's all the time we have for today on this edition of Ask Profit.
25:59 But we will be back on Monday. And thank you so much, Gaurav and Ashish,
26:03 for joining us today and for answering so many questions for us.
26:06 Viewers, thank you for watching. And we'll be back on Monday.
26:09 Stay tuned. Lots more coming up on FBV Profit.
26:12 [Music]