- #NLCIndia's surpasses annual capex target
- What led to #AzkoNobel's higher Q3 profit?
Hiral Dadia and Hersh Sayta bring you small and midcap stocks to keep up with on 'The SMID Show'. #NDTVProfitLive
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- What led to #AzkoNobel's higher Q3 profit?
Hiral Dadia and Hersh Sayta bring you small and midcap stocks to keep up with on 'The SMID Show'. #NDTVProfitLive
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TVTranscript
00:00 came in the favor of NLP India Limited.
00:02 So this is mostly related to the capital order related
00:07 to the eliminated transfer pricing.
00:09 So that is added to the regulator moment
00:13 to this financial balance sheet.
00:17 Sure.
00:18 So you've guided for a target of 100 MTPA
00:22 with regard to your mining capacity by 2030.
00:26 How do you intend to phase this in?
00:30 How quickly do capacities start getting added?
00:32 If you can give us a visibility, maybe over the next two years,
00:36 how much does your capacity go?
00:37 You're currently at 50 MTPA.
00:40 We are currently at 50 MTPA, 30 MTPA lignite,
00:44 and 20 MTPA coal.
00:48 And our one mine, Pachavara South Coal Block,
00:52 which is in the state of Jharkhand,
00:54 is on the verge of starting the production.
00:57 We are expecting the production by June 2024.
01:02 That is a 9 million metric ton capacity mine.
01:06 And in addition to that, recently we
01:08 won one commercial block, North Dadu,
01:13 in the state of Jharkhand, of 3 million metric ton per annum
01:18 capacity.
01:19 And we also participated in recent commercial options
01:26 where we are expecting a major block in the name of Energy
01:30 India Limited.
01:31 With all these things, we are hopeful
01:34 that we will be reaching the 100 million metric ton target
01:37 by 2030.
01:39 And we are envisaging a capex of more than 9,000 crores
01:42 for this mining business by 2030.
01:47 OK.
01:48 Overall, if you see in terms of the renewable space as well,
01:53 Prasanna, the government has come up
01:54 with a couple of announcements in the budget
01:56 as well, specifically with regards to wind and solar.
02:01 Now, if you have to take solar into consideration,
02:05 how is it that NLC stands to gain out of the announcements?
02:10 Madam, NLC India Limited was the early starter in the solar.
02:14 We were the first company in the country
02:16 to add one gigawatt capacity.
02:18 And we are targeting to become a six gigawatt company by 2030.
02:24 So already, two gigawatt projects
02:26 are in pipeline at the state of Rajasthan and Gujarat.
02:29 And as you rightly said, whatever the announcements
02:32 were made during the budget speech,
02:37 the focus was being given more to the rooftop solar capacity
02:41 addition, as well as offshore wind capacity.
02:46 And both the measures are very much useful
02:50 in reaching the target of 500 gigawatt addition by 2030.
02:56 So we are already taking all the opportunities,
02:59 exploring all the opportunities for the rooftop solar.
03:03 And also, we will be making due diligence
03:06 for the offshore wind also.
03:10 Understood.
03:11 And so a ton of CAPEX, which is in the pipeline as we see it,
03:17 how do you plan to fund all of this CAPEX?
03:20 You've recently paid down on debt.
03:22 I mean, by recently, I mean over recent years,
03:25 the last couple of years.
03:27 Would you start to now scale back up with regard
03:30 to your borrowing plan?
03:33 Actually, as you rightly said, we
03:35 are having the CAPEX plan of almost 82,000 crores by 2030.
03:41 Out of that, we are spending 46,000 for the thermal,
03:44 24,000 for renewables, and around 9,000 crores
03:48 for the mines.
03:49 And recently, Honorable Prime Minister
03:51 laid foundation stone of our 300 to 800 megawatt ultra
03:55 supercritical thermal power station
03:57 in the state of Orissa, with investment
03:59 of more than 27,000 crores.
04:01 So with the debt equity ratio of 70/30 for thermal
04:06 and 80/20 for renewables, we require an equity
04:10 of around 21,000 crores by 2030.
04:14 So we are planning to fund this equity
04:17 through the internal resources and the asset monetization
04:21 program of the renewables of 1.4 gigawatt, which
04:24 we are doing through our 100% owned subsidiary, NLC India
04:29 Renewable Energy Limited.
04:31 So Prasanna, with everything said and done,
04:34 FY23, we've seen a revenue number of almost around 16,200
04:40 odd crores.
04:41 Margins were in that range of 35%.
04:43 Profits in that 1,400 to 1,500 odd crore kind of a range.
04:48 What is it that you will look at in terms of FY24 and FY25?
04:54 Because clearly, if you see from a margin perspective,
04:57 we've seen a dip this time around as well.
05:00 So what's that number looking like for both the years?
05:03 Well, they saw the dip in margins in some areas.
05:06 That was on account of some post-measure conditions
05:10 and the weather condition.
05:12 Otherwise, we are hopeful that in '23, '24,
05:17 it will be better than the last financial year.
05:22 And going forward with the commissioning of our Gattampur
05:27 Thermal Power Station unit number one,
05:28 our margins and revenue will further increase.
05:33 Right, and talk to us, sir, about pricing.
05:36 We've seen lignite prices fall over the last maybe three
05:41 to four quarters.
05:43 We reached its peak around April, May.
05:45 Please correct me if I'm wrong.
05:47 So where do we see pricing now?
05:49 Do we see it stabilizing at these levels?
05:51 Or how should one look at it?
05:55 Actually, the last two years were exceptional.
05:57 There was a coal and lignite shortfall scenario.
06:02 That's why the rates were very high.
06:05 But now the rates are stabilized.
06:08 Both the coal and lignite prices are stabilized.
06:12 And although we are getting less price per ton for the coal,
06:19 our revenue from sale of the coal
06:23 is more because we increased our production levels
06:26 so that the revenue from sale of coal
06:29 is more than the last financial year.
06:32 Right, so that's with regards to NLC.
06:35 Thank you, Prasanna, so much for speaking to us at NDTV Profit.
06:39 If you see the stock as well, it has been a multi-bagger.
06:41 Let's just pull up a one-year chart.
06:43 You'll see today the stock is trading slightly
06:45 under pressure.
06:46 And I think mainly it's the margin profile as well,
06:49 which has played a small sport this time around.
06:52 And if you see from a profitability perspective,
06:54 it's just the exceptional that we're taking into consideration.
06:57 But clearly, almost three to three and a half times
07:01 is the kind of gains that we've seen in the last one year.
07:04 But let's quickly slip into a short break.
07:07 In the meantime, let's take a look at Paytm's stock price
07:11 that has actually rebounded today.
07:12 It hit a upper circuit of around 10%, still 8% to 9% kind of gains
07:18 is what we are seeing.
07:20 It's still fighting for survival on the streets.
07:23 As uncertainty prevails about the use of its services,
07:26 some users have decided to ditch the app.
07:29 Now, here's a ground report by my colleague, Maitri.
07:34 Restrictions by the Reserve Bank of India on Paytm
07:37 has taken a toll on the share prices of the fintech company
07:40 on the Dalal Street.
07:42 But what's happening in the streets of Mumbai?
07:44 Hi, this is Maitri Seth.
07:46 And today, I'll talk to Paytm users.
07:48 Users like you and I.
07:50 And I'll see that is it really concerning the Paytm trouble?
07:54 [NON-ENGLISH SPEECH]
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08:25 Further, many small vendors have started giving up on Paytm
08:42 entirely, as they are unaware of the details
08:45 of the restrictions imposed.
08:46 Some even think that Paytm will shut down completely
08:49 and fail to understand that money transactions
08:52 through linked bank accounts will still continue.
08:54 [NON-ENGLISH SPEECH]
08:56 However, some remain optimistic about the company
09:13 and plan to stick to Paytm for their daily transactions.
09:16 [NON-ENGLISH SPEECH]
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09:19 So it seems that users' trust on Paytm
09:35 has definitely shaken after the news.
09:37 However, some still stay positive on the company's fate
09:40 going forward.
09:42 Meanwhile, either no information about the news
09:44 or partial information about the news
09:46 has provoked some people to give up on Paytm services
09:49 completely.
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12:23 Welcome to the small and mid-cap show.
12:32 Now, Axon Noble, that's a stock to focus on as well.
12:35 It's Dulux paint brand that all of us
12:38 are aware about.
12:39 The stock is down 1.3%.
12:41 Overall, if you go to see, the profits have climbed.
12:44 And this is mainly on the back of a strong demand.
12:47 They've surpassed a top line of almost 1,000-odd crores.
12:51 Margins have improved as well on a year-on-year basis.
12:54 Let's welcome in Rajiv Rajagopal, Chairman and Managing
12:57 Director at Axon Noble.
12:59 Rajiv, good morning and welcome to the show.
13:02 My first question coming to you is,
13:04 overall, from an earnings perspective,
13:07 improvement in terms of margins and profitability,
13:11 what has worked and where do you think is the deficiency?
13:15 Good morning, Kiral, and good morning to all the viewers.
13:18 Yes, so we've had what I would say
13:21 a productive performance in the last quarter.
13:24 It's been a bit broad-based.
13:26 Where we've done well on the decorative paint
13:28 side of the business has been more in the luxury segments
13:32 as compared to-- and the adjacencies of waterproofing
13:34 as compared to some of the economy and the mass,
13:38 which is also reflected in our stronger contribution margins.
13:42 Yeah, the second, in my view, when
13:45 you look at the coatings business,
13:46 I think we've had a fantastic performance
13:50 led in the industrial coating, powder business,
13:52 and in automotive and refurbished business.
13:54 We've had a bit of a challenge in the marine and protective.
13:57 It's only in the quarter, nine months.
13:58 They are still doing very well, largely because of some back-end
14:02 orders which have got sort of delayed due to various reasons
14:06 and a bit on seasonality.
14:07 So that's the sort of performance.
14:11 The margins were pretty good because the raw material
14:13 deflation has continued.
14:15 We've seen a bit of a stronger work happening
14:18 on a lot of cost efficiency programs.
14:21 And also our digitization at our back-end has been strengthened.
14:25 So that's in all what I couldn't sort of talk about,
14:28 which is reflected in the quarter gone by.
14:31 Right, Rajiv Harsh also joining in.
14:33 I want to talk to you a little bit
14:34 about what you just spoke about with regard to premiumization.
14:38 Is that also contributing to the margin uptick?
14:41 Because you mentioned three, four reasons,
14:43 and premiumization wasn't one of them.
14:45 So what I actually want to try and delve deeper into
14:47 is how is this premiumization playing through?
14:50 Is it a one-off, given the fact that October to December
14:52 was largely a quarter where you will see a lot of B2C happening?
14:57 Or was it more structural?
15:01 No, good question, Raj.
15:02 So firstly, when I said in the decorative luxury
15:05 has done well for us, luxury is a strong contributor
15:08 as a part of premium.
15:09 And hence, yes, there is a premiumization.
15:11 We see slightly different perhaps from the industry.
15:15 We see premium continuing to do well.
15:18 Two, three reasons for it.
15:19 I think we've got fairly strong iconic brands,
15:21 whether it's Dulux, Velvetouch or Dulux, WeatherShield,
15:24 where we've got three brands, Dulux, WeatherShield,
15:27 PowerFlex, Max, and Dulux, WeatherShield, Protect.
15:30 So we've seen a rebounce in that segment.
15:32 One, because we provide the best in class quality.
15:35 Second, after we launched a program called Dulux Assurance,
15:39 which is a money back guarantee for any consumer.
15:42 Say if, Harsh, you decide to paint your home
15:45 and you have a problem with either the color,
15:47 consistency or coverage, it's an offer which is available.
15:51 And we've seen a tremendous uptick post that
15:54 because we are very confident of the quality that we offer.
15:56 And we are willing to do a money back guarantee
15:58 with our customers and consumers.
16:00 So we've seen a strong climb back after that
16:03 because consumers also have given a validation
16:06 to the fact that, yes, this is a strong quality brand.
16:08 So it's led by quality,
16:10 but you will see a lot more work happening
16:12 on new product launches as the year goes by.
16:15 As we start getting towards the festival,
16:17 this time Diwali is gonna be in October.
16:19 So you'll see a lot more work on advertising,
16:22 branding, and in terms of digitization.
16:25 We are also into a lot of analytics
16:27 and also building our digital platforms
16:29 to try and make sure that we are also able
16:32 to serve a very small niche,
16:34 but consumers are also going into DIY.
16:37 Very small niche, I must say, but you can see.
16:40 We've gotta be patient there
16:41 because that'll suddenly one day uptake
16:43 and we wanna be ready in terms of platform,
16:45 products, availability, et cetera.
16:47 That's what's leading to the premiumization doing well.
16:49 And I think we are well placed.
16:51 Is it a one-off?
16:52 No, I believe that, I think it's gonna be,
16:54 we shouldn't be able to continue that
16:56 unless there are some headwinds
16:58 that we see where consumer purchases
17:00 sort of come back there, yeah.
17:02 - Okay, I also wanna understand, Rajiv, from you
17:08 as to how volumes are doing in the business,
17:11 because you've seen a bit of a volume uptake
17:13 in this quarter.
17:15 Is that a trend which you expect to continue
17:18 given the fact that generally
17:20 when the real estate construction side of business does well
17:23 as well as infra is doing well,
17:25 that's not a cycle we've seen too many times
17:27 and both of that is playing in parallel this time around
17:30 and pains generally benefits a year
17:32 after we've seen the real estate cycle benefit.
17:35 So please talk to us about how you believe
17:37 the numbers will change in FY25, 26.
17:40 - Yeah, so I believe that we will continue
17:44 to see a volume growth at least for a year or so, right?
17:46 So at least in the coming fiscal,
17:50 we do see that we should at least
17:53 for the first nine months of the year,
17:55 we will see strong volume growth.
17:56 Why?
17:57 Because simple, we have taken a lot of price increases,
18:00 the industry has taken a lot of price increases
18:02 due to raw material inflation, now with deflation,
18:04 obviously, and the margins reaching where they have,
18:07 we believe that there'll be a lot of reinvestment
18:09 on the brands in terms of making sure
18:11 we get the right price points back
18:13 and making sure that we are competitive enough
18:15 to make sure that consumers buy us.
18:17 So we will see volume growth,
18:19 we will continue to see double digit volume growth
18:21 going forward, not just in the current quarter,
18:24 but also in the fiscal, you know, 25, 26.
18:27 Yeah, two other reasons that we'll see it,
18:30 from our perspective, look, we are obviously
18:32 slightly under indexed in the mass and economy segment,
18:36 and obviously we are trying to make sure
18:37 that we start getting our fair share there.
18:39 That can be another reason for an uptick there.
18:41 So these are two strong reasons that I believe
18:43 that we should continue to see strong volume growth.
18:46 In the pain side of the business,
18:47 coding side of the business is going to be driven
18:49 by a co-sector index, you know,
18:51 is a reflection of how the industries are doing.
18:53 At this point of time, you know, we believe that it will,
18:57 but this is an election year,
18:58 and we must be a little practical in the fact
18:59 that typically in the months of April, May,
19:02 that's in the, you know, in the first quarter
19:03 of the new fiscal, you will see a little bit of a slowness
19:06 before the results are out,
19:07 and we know the government has put in place, et cetera,
19:10 and then we start seeing infrastructure again pick up.
19:12 So typically we've seen this in '14 and '19,
19:15 that during the months of the election,
19:17 there is a little bit of a slowdown
19:19 for natural obvious reasons,
19:20 but after that, again, you see a quick pick up tick.
19:22 We believe that the same will get repeated.
19:25 - Right, so Rajiv, overall,
19:26 let's look at, you know, the margins as well.
19:29 We've seen a 16.1% this time around.
19:32 If you have to extrapolate from the top line,
19:35 bottom line, and margin perspective,
19:37 what is FY '24 and '25 taking into consideration
19:42 the demand and the growth you're envisaging
19:44 into consideration on the volume front,
19:46 how will these numbers look like?
19:49 - So let me, you know, I always believe that, look,
19:51 ultimately we are in business because, you know,
19:53 we've got to make sure that we are a profitable player
19:55 because we are a challenger brand
19:57 as a number four brand in the decorative page segment.
19:59 So I always start saying, look,
20:01 I think we want a fair share of the profits.
20:03 We believe that, look,
20:04 13 to 15% average margin is a good place to be in.
20:07 And then we start looking at saying,
20:09 what really do we want to do?
20:10 We want to now start gaining market share.
20:12 And that is what we'll start reflecting in the top line.
20:15 We don't give guidances in terms of where it is,
20:18 but I do believe that in the medium to long term,
20:22 we do intend to, even if you look at our current performances,
20:26 we do intend to be in the top two players
20:28 in terms of incremental growth.
20:29 I think that answers your question, Ethan.
20:32 - Right, absolutely.
20:34 Rajiv, my last quick question is,
20:35 you have a year on the ground with regard to rural.
20:38 I want some guidance from you or some thought process
20:42 as to which direction is rural moving
20:44 and you've invested a bit with regard to even supply chain
20:48 in rural in the last couple of quarters,
20:50 you've been doing that.
20:51 What's happening on the rural side of things?
20:54 Are you seeing a recovery
20:55 and how is Axo really tapping into it very quickly?
20:58 - Yeah, so look, for me, rural is doing well,
21:00 primarily because I'm a very under indexed
21:02 in rural right now.
21:03 So what I'm seeing may not be reflective of the industry
21:06 or even if you take an FMCG in general,
21:09 it's slightly different.
21:10 But what I'm seeing, since you're asking me that question,
21:13 I do believe that, look,
21:14 I think there have been inflationary pressures
21:16 which have impacted rural demand.
21:18 When I've traveled across and seen markets
21:20 and looked at consumption levels
21:22 and people are sometimes getting gratification
21:25 of certain categories, which sometimes including us, right?
21:28 But I think that is now more or less settling down.
21:31 I believe that there will be a period of time
21:33 in a month or so when we will start seeing rural come back.
21:37 We had some unseasonal rains
21:39 which impacted crop pattern in certain states,
21:42 which has also been a bit of a challenge.
21:44 But I do believe now, in the current quarter,
21:47 you may see a minor upswing,
21:48 but you will start seeing the real upswing
21:50 after the elections are over and everything is back.
21:52 People will start now really getting into consumption demand.
21:57 I see this year as being a stronger year for rural
22:00 compared to the year gone by, the coming year.
22:04 - Right, so some positive there as well, Rajiv.
22:06 It's been a pleasure interacting with you.
22:08 We're completely out of time on this one,
22:09 but good luck on the following quarters
22:13 and congratulations on a good set of numbers.
22:16 But with that, we're completely out of time
22:18 on this edition of the Small and Mid-Cap Show
22:20 from Hiral, myself, everyone who puts the show together.
22:23 Thanks so much for watching.
22:25 More on the other side, Ask Profit.
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25:49 - Good morning, you're watching Ask Profit on NTV Profit.
26:03 I'm Smriti Choudhury and with me is Alex Matthew.
26:06 After the next 30 minutes,
26:07 we'll take all your stock related questions.
26:09 So you can write all your questions to us
26:13 on any of our social media channels
26:15 or on the YouTube live chat.
26:16 We'll also be tracking the WhatsApp number
26:18 that will be flashing on your screen
26:20 and we'll take up questions from there as well.
26:22 Now, before we move on,
26:23 let me introduce you to the guests for today.
26:26 We have with us Mr. Sunny Agarwal,
26:29 SPI Cap from SPI Cap and Ayush Mehta
26:32 from Nirmal Bang Securities.
26:33 Welcome to both of you
26:35 and thank you for taking the time out.
26:37 Now, before we jump into the questions,
26:39 let's take a quick look at the markets.
26:41 Alex, we started on a strong note in the morning,
26:44 but where do we currently stand?
26:46 - As flat as flat can be.
26:48 And I think in this certain situation,
26:51 one of my colleagues has called it flat as a pancake.
26:54 That's essentially what we are right now,
26:56 completely unchanged from the previous close.
26:58 And as Smriti pointed out,
27:00 we've given up some gains on the benchmark index.
27:03 The broader markets continue to hold on to some gains,
27:07 just about a third of a percent each
27:09 for the nifty mid-cap 150 index.
27:11 Right now, in fact, even lower than that,
27:13 and a third of a percent for the small cap 250 index as well.
27:17 Perhaps, you know, the market breadth
27:19 losing out a little bit.
27:20 In fact, let's pull up the advance decline ratio
27:22 and that will probably show you
27:24 that that gap between the advances and declines
27:27 would have narrowed quite significantly.
27:28 In fact, yeah, so there you go.
27:30 A very clear representation
27:32 of what's playing out in the market right now.
27:34 Let's take a look at some of the key indices as well.
27:37 And you will notice that there are a few standard performers.
27:40 Of course, the auto index was outperforming
27:42 at the start of trade, but it's no longer the case.
27:44 In fact, it's losing ground as a pack.
27:46 The PSU banking pack continues to be the top gainer,
27:49 followed by realty, media and pharma,
27:51 but not very big gains to speak of.
27:54 We are, however, focusing on one particular stock
27:56 from the broader markets, and that is Sirma.
27:59 And this is an EMS play from what I have seen,
28:03 and I must say that I have not seen the numbers very closely.
28:05 Smriti, what are you picking up?
28:07 - Well, the results were kind of disappointing,
28:09 which is why we're seeing a sharp downtick
28:12 in the stock as well.
28:13 We saw revenues grow 38% to 709 crores.
28:16 However, EBITDA was down about 14% to 41 crores,
28:20 and margins contracted to 7% from 11%
28:25 in the previous quarter.
28:27 Net profit was down 40% to 20 crores.
28:30 However, we also spoke to the management of Sirma
28:32 and two points that were highlighted was their order book.
28:37 Now, they have an order book of about 4,500 crores,
28:43 and they expect to execute 4,000 crore
28:48 of this 4,500 crore in the next 12 months.
28:50 However, their revenue, they said,
28:53 is likely to remain at these levels only.
28:56 So, which is kind of a, you know,
28:59 contrary to what we usually have
29:01 when you start executing orders,
29:03 your revenue should start to go up as well.
29:06 But that's what we got from the management.
29:09 Now, we will be joined by Sunny Agarwal in a bit.
29:14 - But in the meanwhile, let's in fact take a very quick check
29:16 of where the markets are right now,
29:19 while we're waiting for Sunny to join.
29:21 Ayush, coming to you, good morning to you.
29:24 What are the key levels for the benchmark Nifty 50
29:26 as well as the Bank Nifty today?
29:27 - Good morning, Alex.
29:29 Thank you for having me on the show.
29:31 As we talk about Nifty,
29:33 Nifty is taking continuous resistance
29:34 around 22,125 levels,
29:36 and today it has made a high of approximately 22,050.
29:41 We feel there's a big support zone at Nifty
29:43 at around 21,700 levels,
29:44 which is its 20-day moving average,
29:46 which it has sustained and surpassed
29:48 on approximately the 30th of January.
29:50 As long as 21,700 Nifty is holding,
29:53 I don't see a big downside apart from that.
29:56 But if that is broken on a closing basis,
29:57 then we can expect a level up to 21,400.
29:59 But today I feel market will be a slightish
30:02 on the sideways front only.
30:03 And moving on to Bank Nifty,
30:06 Bank Nifty has shown some selling pressure
30:09 from the higher levels of 46,300 levels.
30:13 The support zone for Bank Nifty
30:14 currently lies at 45,800 levels,
30:18 which is 150 and then 80 points from here.
30:21 If that is broken,
30:22 then we'll expect a downside towards 45,500.
30:24 I feel Bank Nifty,
30:26 there are certain stocks like PSU stocks
30:28 that are still performing okay,
30:30 but the major Bank Nifty stocks
30:31 are not doing that very good.
30:33 - In fact, let's jump straight into the questions then,
30:36 and I will focus on the technical questions at the start
30:40 while we wait for Sunny to join.
30:42 We've got Tushar Kamble from Mumbai
30:44 who is asking about Orient Green,
30:47 which has been doing quite well
30:49 over the last few sessions.
30:51 Let's pull up the chart
30:52 and see where it's currently trading, Orient Green,
30:54 because he's wondering whether to buy at the current level.
30:57 Is this a good time to enter?
30:59 It's in fact at an upper circuit today as well.
31:02 Oh, very close, yeah, there you go.
31:03 So upper circuit.
31:04 What would you say on the charts though, Ayush?
31:07 No sellers in the stock, only buyers.
31:10 So therefore, would you try to venture into this
31:14 if given the chance?
31:15 - Well, I feel trading is a little limited over here
31:20 because of the upper circuit
31:20 and it is happening since approximately 31st of January
31:24 from the breakout level of 25, now it is steady to 85.
31:27 I'll suggest whoever is holding the stock,
31:29 they should keep it with the trailing stop loss
31:32 and the trailing stop loss should be around 31.75,
31:35 that is the support zone actually.
31:37 If that is broken, I feel you should exit
31:39 because of the continuous upper circuit.
31:41 We may see a slight replacement in the stock,
31:43 retracement in the stock.
31:45 - All right, next up we're talking about
31:47 Brigade Enterprises.
31:48 We're seeing an uptick in actually the Realty Index itself,
31:52 but Brigade Enterprises as well.
31:54 It's currently up about more than 1.5%.
31:58 This one's from Parag
31:59 and they want to know if this is a good time
32:01 to enter the stock.
32:02 - Well, Brigade Enterprises is looking good
32:05 at current levels.
32:06 It has taken the support of its boiler bands,
32:08 upper band that was at around 1070.
32:11 If you want to enter, if the customer,
32:13 the client wants to enter at this price,
32:15 it can definitely be entered for a short-term target
32:18 coming out to be around 1080,
32:22 no, sorry, 1080, the CNB,
32:24 the short-term target is coming out to be 1125.
32:27 If that is broken, then we can expect a rally
32:29 up to 1120 in the stock.
32:31 - I believe we've got Sunny joining in.
32:33 Sunny, thanks as always for taking the time.
32:36 We were discussing Sirma a little earlier
32:39 and Smriti has broken down the numbers as well.
32:41 The stock is under pressure today.
32:42 A little bit of a disappointment.
32:44 What would you reckon that the fundamental analysis,
32:48 what do you think that an investor should do
32:50 from the long-term perspective
32:52 based on the fundamentals?
32:53 - Yeah, thanks Alex.
32:55 Thanks for having me on the show.
32:57 Definitely a weaker set of number
32:59 as compared to the sweet expectation.
33:02 However, what I believe is that in a company like Sirma,
33:06 where there are multiple sectors at play,
33:08 so due to some time, due to adverse product mix,
33:11 we may have seen some pressure on the margin
33:14 and the clarity, more clarity will be emerging
33:17 out of the analyst call, which is scheduled today.
33:20 But what I feel from a long-term perspective,
33:22 the opportunities still continue to remain pretty robust
33:25 for Sirma in terms of growth opportunity.
33:28 So entire EMS space is doing well.
33:29 At the same time, we are yet to hear from Sirma
33:32 on tie-up for PLI-2 scheme for manufacturing of laptop.
33:37 And I'm sure the management is in talk
33:39 with multiple brands to get that contract.
33:42 And once that is in place, I believe F25 and 26,
33:45 we will see a decent growth
33:48 in terms of profitability and earning.
33:50 So we continue to remain bullish on Sirma
33:52 from a medium to long-term investment.
33:54 - Fair point.
33:57 Let's talk about Tata Coffee.
33:59 Rashida has bought shares at 215 levels
34:03 and they have a general question on mergers as well.
34:06 They're talking about why do companies go for a merger
34:09 like HDFC and HDFC Bank went on
34:12 and there's Tata Coffee that's gonna merge
34:13 with Tata Consumer as well.
34:15 Sunny, if you could talk about the stock
34:17 and the overall merger strategies
34:19 of these companies as well.
34:20 And what do investors get out of it?
34:22 - And also, let me add to that
34:24 because she's also wondering whether to add more
34:26 of Tata Consumer at this price.
34:28 - Yeah, so Alex, I think the merger issue
34:31 is already in place between Tata Consumer and Tata Coffee.
34:35 So I think until the time merger is over,
34:38 both the stock prices will move in tandem with each other.
34:41 So I don't know right now, I don't have competition
34:44 whether there is an arbitrage
34:45 between Tata Consumer and Tata Coffee at this point of time.
34:48 But ultimately, Tata Coffee will get merged
34:50 with Tata Consumer and the shareholders of Tata Coffee
34:53 will get shares of Tata Consumer.
34:55 Coming to the outlook on Tata Consumer,
34:57 yes, we continue to remain bullish
34:58 on Tata Consumer as a business.
35:01 The reason being that company continues to grow well,
35:04 both organically as well as inorganically.
35:07 And it is one of the fastest growing FMCG company
35:10 in India as of now.
35:11 And if somebody is a long-term investor,
35:14 he can either buy Tata Consumer or Tata Coffee,
35:17 anyway, the merger is already in place.
35:20 And why usually company announce merger?
35:22 So obviously, there are synergies between the businesses
35:27 which can be derived out of the merger.
35:29 And that is the sole intent for any merger or marriage
35:32 between the two organizations.
35:34 - Fair point, all right.
35:36 SJVN is the next stock that we're focusing on,
35:38 not doing too much in trade today.
35:41 But I mean, just look at the last month or so,
35:44 it's been a phenomenal story.
35:47 Year-to-date gains of 57%.
35:51 And it's, I mean, I'm losing adjectives right now.
35:56 The question is coming in from Deepankar,
35:58 asking for a short-term and long-term view
36:00 and whether or not it should be bought at the current level.
36:02 Ayush, on the charts, stellar pattern for this,
36:06 I would think, but would you buy at these levels?
36:09 - Well, I would not recommend buying at these levels,
36:12 I feel because the stock has moved up very well
36:14 from last so many weeks and months
36:16 and the weekly and monthly volume in the stock is phenomenal.
36:20 And I feel there can be a little replacement here,
36:23 which we are facing since from 170 levels, it is already 146.
36:27 The ideal buying zone for this stock
36:29 would be around 120 to 130.
36:31 If you get this in this price range,
36:33 I feel that would be an ideal buying zone.
36:35 And for a long-term target, I feel it can zoom up to 175,
36:40 long-term as in one month's target can zoom up to 175
36:44 after breaking the previous higher 170.
36:46 And the short-term will be around 160 only,
36:50 because there's a complete,
36:51 there's a resistance at higher levels.
36:54 - All right, next up, we're talking about Yes Bank.
36:57 This one's from G.C. Prakash.
36:58 They've bought the stock at very high levels at 250.
37:02 The stock is currently trading around 26 rupees.
37:06 Now they want to know if they should continue
37:07 holding onto this and if it'll reach their buy levels
37:13 and what is the time period that they can wait for.
37:16 Sunny, Yes Bank.
37:18 - I'm sorry, I can't share my view on Yes Bank
37:22 being an associate company of SBI.
37:24 The complaint doesn't allow us to talk on any companies
37:27 which are related to it.
37:28 - All right, let's quickly take a technical check
37:31 on this as well.
37:32 How does Yes Bank look on the charts?
37:35 - Yes Bank is looking really positive on the charts.
37:38 Interday, it has given a breakout of six black pattern
37:40 with 60 minutes in daily charts.
37:43 And I feel that this stock should be holding
37:46 for a target of around 40 to 45 days in the coming months.
37:50 The stock is really positive in all the time period,
37:52 weekly, monthly, or daily.
37:54 Plus it has placed well itself
37:56 from above all the moving averages.
37:58 So I feel definitely it should be holding
38:00 for a long time.
38:01 - All right, Deepika from Delhi is asking this next question.
38:04 Astral Limited is the name of the counter
38:06 that she's looking at.
38:06 And she's bought at levels of 1925.
38:09 And she's bought 38 shares.
38:11 Ayush, on the technicals,
38:13 she's looking at both the long-term as well as a short,
38:15 no, sorry, she's looking at a short-term perspective
38:18 for the next three months.
38:19 Would you hold or sell?
38:20 - Well, I would recommend to hold
38:22 because the stock is currently at the support zone
38:24 of 50 day and 100 day moving average,
38:26 which is coming out to be around 18 ET.
38:29 As long as it is holding 18 ET on a closing basis,
38:32 I think you should hold the stock.
38:33 And, but the short-term target and the upside resistance
38:36 is currently placed at 2015.
38:37 So I think once it crosses 2015,
38:41 then only we'll see a bigger value in the stock.
38:43 2015 will be the first resistance
38:45 and 18 ET will be the support zone for the stock.
38:48 - All right, next up, we're talking about Ratan India Power
38:52 and this one's from Udit.
38:53 They want to know if this is a good time
38:54 to get into the stock.
38:55 Now, if you look at one year performance,
38:57 it's given over 200% gains.
39:00 Sunny, would you suggest entering
39:02 Ratan India Power right now?
39:05 - So Ratan India basically, again, a thermal power company.
39:09 So there are two plants which are operational in the company.
39:11 One is Amravati Power Plant and one is Nasik.
39:14 So the Amravati Power Plant continue to remain profitable.
39:16 However, the Nasik Power Plant
39:17 is yet to kick off the operation.
39:20 And recently there was a, I think,
39:22 ruling from the NCLT that this power plant
39:25 may be hired off and some new player
39:28 will be a buyer in this company.
39:31 So kind of high risk, high return,
39:33 but in case that Nasik Power Plant is divested
39:36 and the only sole Amravati Power Plant
39:39 continue to remain in the company,
39:41 then one can expect a bump up in profit
39:45 for Ratan India Power.
39:46 So it's the stock is only for high risk,
39:49 high return investor.
39:51 And one need to be, the allocation has to be proper
39:54 in this, in such kind of name.
39:57 Maybe one or 2% of the portfolio should be the limit
40:00 wherein one can bet on such names.
40:01 - Okay, fair point.
40:03 Gentlemen, do stay with us and viewers
40:05 do stay with us as well.
40:06 We will take more queries, but after this very quick break.
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43:04 - Welcome back, you're watching Ask Profit
43:08 and the first question we're taking on this side
43:11 of the program is from V.S. Mohan.
43:14 He's writing in from Talcher and he's asking
43:16 about IndusInd Bank, which is bought at levels of 1,530.
43:20 Of course, in the recent past, you've seen the stock run up
43:24 because of certain regulatory, or not regulatory rather,
43:28 stock exchange notifications were sent out.
43:31 But there was, of course, a clarification
43:33 of the HDFC group.
43:34 I'm wondering, do you have a view on this one, Sunny?
43:36 What would you say for Mohan?
43:39 Should he hold on to this one?
43:40 Sunny, if you can hear me,
43:46 we're asking about IndusInd Bank.
43:47 - I think one can hold on to the IndusInd Bank
43:51 in a medium to long term portfolio.
43:53 And the bank continue to do well.
43:55 And what we feel is that the fair value of the business
43:59 is close to 1800 rupees over the period of next 12 months.
44:02 So please continue to hold IndusInd Bank.
44:05 - All right, next one's from Amit Rastogi.
44:07 They want to invest into green energy sector
44:10 for the next one to two years.
44:12 Sunny, what are your stock picks within the sector?
44:14 - So again, first of all, a lot of questions.
44:18 So we have already seen a lot of exuberance
44:20 in the entire green energy space.
44:22 So recently, one stock which was getting discussed
44:24 was HGVN, again, one of the nodal agency
44:27 for implementing a green energy project.
44:30 So the stock which we like is HGVN, again, RECPFC.
44:34 So ultimately, the power finance companies
44:36 are the one which will get benefited
44:39 because of the green energy project.
44:41 And at the same time, larger players like Adani and Reliance
44:46 so we have seen a new energy business
44:49 being set up under the Reliance.
44:50 So ultimately, that business will be,
44:53 see a substantial ramp up
44:55 over the period of next four to five years.
44:57 Adani, we are seeing a substantial ramp up
45:00 in our green energy side.
45:02 Tata Power, again, a Tata Group company
45:06 doing a lot of work on the green energy side.
45:09 Suidlon, again, on the energy side.
45:12 But again, what we have seen is that
45:14 there is a lot of run-up
45:15 which we have seen during the last one month.
45:17 And maybe buy-on-dip is something
45:19 which one should adopt in his or her portfolio.
45:23 - A lot of long-term queries today.
45:25 And Sani, I'm coming back to you on this one.
45:27 It's a little long, so pay attention to this one.
45:30 We've got ACE bought at levels of 68,
45:33 Sanghvi Movers bought at levels of 71,
45:36 Escorts bought at levels of 750.
45:38 All of this is from Sagar,
45:40 and he's buying these companies
45:42 in the construction equipment space
45:44 as a proxy to the infraspace.
45:47 Because from his experience,
45:49 and of course, what we've seen in the past
45:51 is that some of these infrastructure companies
45:53 have a significant amount of debt.
45:55 So is it the right approach to have
45:59 to use this as a proxy?
46:00 And what would you say about the companies
46:02 that he has picked?
46:03 - Yeah, that's the right approach
46:06 to ride an infrastructure growth story in India.
46:08 And the company which we like within this space
46:10 is ACE Action Construction Equipment.
46:14 So yesterday evening,
46:15 the company has posted the very rock-solid set of numbers.
46:18 So profit has increased to close to 65 to 70 crore
46:21 on a quarterly basis.
46:23 And we are seeing a very strong reaction
46:25 to that in the trade today.
46:28 So for Escort, again,
46:29 that's one of the business division
46:31 as far as the construction equipment is concerned.
46:34 But the contribution to the overall top line
46:36 is close to 25 to 30% only.
46:39 And the majority of the profitability
46:41 still comes from the farm equipment segment.
46:43 So I think the right way to ride this sector,
46:46 if somebody want to ride in construction equipment spaces
46:49 through Action Construction Equipment, it is.
46:52 - All right, next up,
46:53 we're talking about a recent listing.
46:55 This is from Parag,
46:57 and they're talking about Mufti.
46:59 It got listed in December,
47:01 and currently it's up in trade today about 1%.
47:06 From the longer term perspective,
47:08 Sunny, would you have a view on this?
47:10 - Sorry, I missed the name.
47:14 - Mufti, it's Credo Brands Marketing.
47:16 - Yeah, so Credo, yeah, yeah.
47:17 So definitely it's a strong brand.
47:19 And recently management has went on record
47:22 to say that the brand has got a potential
47:24 to grow at 15 to 16% CAGR
47:27 over the period of three to five years.
47:29 So it's a typical apparel fashion-led consumer story.
47:34 The brand is pretty strong,
47:35 and company continue to do well.
47:37 So one can expect 15 to 16% of CAGR return
47:42 over the period of next three to five years.
47:43 That should be the return expectation from the Credo.
47:45 And I would recommend to buy with an investment
47:49 or as an off medium to long.
47:50 - Okay, fair point.
47:51 I'm coming to you, Ayush.
47:53 Sorry to keep you waiting.
47:54 We've got Ramesh from Hyderabad
47:55 who's asking about Max Health,
47:57 which he's bought 25 off at 580 levels.
48:02 And he's wondering whether to add more
48:03 at the current market price.
48:05 If not at this price,
48:06 then at what level should he consider accumulating?
48:08 - We think that's a very good,
48:11 it is forming a higher-bottom formation.
48:14 I would not recommend to buy at this current price
48:17 as this reward is not very favorable.
48:21 770 is the ideal buying zone for this stock.
48:24 Today it has made a low of 799,
48:25 and the previous support zone lies around 765 to 770.