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-#Brokerages bullish on #CEAT post analyst meet.
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TVTranscript
01:30Good morning. You're tuned in to Ask Profit on NDTV Profit. I'm Smriti Chaudhary and with
01:52me is Alex Matthew. And this show is all about your stock related queries. Be it a long term
01:56query or a short term trade, do write to us your queries on the WhatsApp number that's
02:01flashing on your screen or on any of our social media channels or even on the YouTube live
02:06chat and we'll take your questions from there. But before that, let's take a quick check
02:11of the markets. You have the Nifty 50 up in green, up about three tenths of a percent
02:17in trade, a bit of a positive. I mean, in the positive, but we're seeing Nifty 50 from
02:23red to green quite often since morning today. But let's look at the broader end of the
02:29spectrum as well. You have the Nifty mid cap that's doing better than the benchmark up
02:34about half a percent and Nifty small cap up over one percent in trade. Let's pull up the
02:40contributors of the Nifty 50 as well and see what's pulling the index higher at this point.
02:45You have the likes of RIL, Axis Bank and Power Grid that are contributing to Nifty 50 up
02:52about 70 points right now. On the other hand, you have Infosys, Mahindra and Mahindra and
02:58HDFC Bank along with TCS that are dragging the index down at this juncture. But let's
03:05look at the sectors as well and see what's doing well. You have the Nifty Auto, Nifty
03:09Bank, Consumer Durables all in the green today, apart from Nifty IT and Metals, everything
03:16else in green. Nifty IT is specifically seeing a bad day today down about 1.6 percent in
03:22trade. Let's also look at some of the specific stocks that are moving. If you can pull up
03:30Suzlon, that's one of the stock that's moving today and that's on the back of a resignation
03:36of an independent director. And Alex, the concern there is of corporate governance that
03:43has come about. But the company on the weekend, on a Sunday specifically, held a call and
03:49they cleared out a lot of things. Brokerages, including Nuvama, says that they continue
03:53to remain positive on the counter. But other than Suzlon, you have...
03:58There's also Raymond. Yeah, I was looking at Raymond. It's up quite significantly. Its
04:02real estate division has been picked for a two-acre Mumbai project. The stock as a whole
04:08is up about 7 percent. Remember, this is a company that is heading into a split of its
04:13businesses. It's going to be, of course, the clothing and suiting business that's going
04:19to be separate from the real estate business. That is something that will come to pass.
04:23But in the interim, this is the stock that is currently listed and it's up about 7 percent.
04:28If I'm not mistaken, it's also at a record high. The project is for a redevelopment project
04:35as I understand it. It has been selected as the preferred developer for a redevelopment
04:41project. And this is in Mumbai, of course. A couple of other stocks that you should watch
04:47out for in trade today, we were going to talk about Seat as well. And the stock is off the
04:52high point of the day, but it's still trading with gains of about 2.5 percent or thereabouts.
04:58There has been an investor call where the management has spoken to brokerages and brokerages
05:05are quite upbeat about the commentary that has come through. Puneet is joining in to
05:09tell you about some of what the company expects to pan out in the current financial year.
05:14Puneet, what are you picking up? Well, there are five key takeaways from this
05:18particular analyst call that you also mentioned correctly for Seat going forward and the management
05:23has been quite upfront with the commentary going forward in the next 12 to 18 months
05:26as well. So first, they have said that they are aiming to maintain its market leadership
05:31currently in most of the and mostly in the profitable two-wheeler segment that the company
05:35operates in. Currently has roughly 33 percent market share there and is looking to hold
05:40on to it going forward as well, despite competition, working on pricing as well as newer products.
05:45The second is that, you know, it may gain more share in the passenger vehicle as well
05:49as the commercial vehicle space in which the company operates in. It has improved the pricing
05:54and the quality of products also going forward is one of the things. The third one is the
05:59export revenue for the company. Now, they are expecting to have roughly 25 percent revenue
06:04contribution from exports going forward. It currently is between the 18 to 19 percent
06:09range. So going forward and exports have slightly higher margins as well because the premium
06:13products are more sold in geographies such as Europe. That's a key positive as well.
06:17The fourth one is that, you know, despite slower growth on newer cars as well as competition
06:23in the OEM, they are expecting that, you know, because of a lower base effect in the previous
06:28financial year of 2024, there should be some growth in this particular vertical. And finally,
06:33Capex, it will be elevated at roughly thousand crores for this particular fiscal year of
06:382025 and will include completions of capacities in the PCR as well as the off-highway segment.
06:44Now, brokerages have largely been positive and effectively, if you have to summarize
06:48it, it is on valuations. So Novama came out with the report post this and this means they
06:52have a target price of roughly 3000 rupees per share, which is a 22 percent upside from
06:57the current levels. They have said that, you know, they are expecting volume growth
07:00to be in the high single digit for the company, which is very good compared to what the competitors
07:04have been saying, as well as exports to grow in double digits and markets such as APAC
07:09to do very well for the company. They are expecting some raw material price hike in
07:13Q1 of roughly 3 to 4 percent, but that will largely be passed on. And Motira Lowswale
07:18is bullish on the same again, price target of roughly 2900 rupees. One other thing that
07:24I wanted to highlight was what ICICI security said. It has saying that, you know, companies
07:29looking to launch the TBR tyres in Q2 as well as PCR tyres in Q4, which will complete the
07:36product portfolio of SEAD going forward as well. So overall, brokerages are largely positive.
07:41Valuation remains one of the key positives for the company.
07:43Thank you so much, Puneet, for getting us those details. I do want to draw your attention
07:48to the latest update that you see flashing at the bottom of your screen. And this is
07:53the assets under management data that is released by the Association of Mutual Funds in India.
07:59This is for the month gone by, that is the month of May. And I look at the overall assets
08:04under management for the industry. It stands at 58.9 lakh crore rupees at the end of the
08:11month. But let's take a look at some of the key details that are coming through. The first
08:15of which is that equity mutual funds as a whole, and I'm talking about actively managed
08:20equity mutual funds. The assets under management currently stand or at the end of May, they
08:24stood at 25.4 lakh crore rupees. And in the month gone by, that is April, they stood at
08:3124.7. So there is a growth there. Of course, that is on account of both inflows as well
08:37as the growth in the underlying. Some of the key subsegments of this, and I will speak
08:44about the small cap and the mid cap actively managed schemes, because this is where you've
08:48seen tremendous interest from retail investors. The small cap actively managed schemes have
08:54seen inflows to the extent of 2,725 odd crore rupees and mid cap schemes have seen a similar
09:01inflow of as much as 2,600 crore rupees or thereabouts, cumulatively over 3,000 crores
09:08coming in once again for this category of mutual fund schemes. There is also an inflow
09:13into large cap schemes to the extent of about 660 crore rupees and flexi cap schemes have
09:18seen an inflow of 3,155 crore rupees. If I'm not mistaken, this is going to be another
09:24record for the inflows into actively managed equity schemes, which stands at about 34,700
09:32crore rupees, which is quite substantial. Fixed income mutual fund schemes as a whole
09:37have seen inflows of about 42,300 crore rupees and hybrid schemes, most of which has come
09:44through in arbitrage funds, have seen an inflow of about 18,000 crore rupees, of which hybrid
09:52arbitrage funds, which are the short tenor investments that you would make, have accounted
09:57for inflows of about 12,750 crore rupees or 60 crore rupees or thereabouts. We will revisit
10:04this over the course of the day and there is a call in just a short while. There will
10:09be inputs that we will get from that there as well. But for now, let me introduce you
10:13to the guests on Ask Profit. We've got Ashish Kapoor as well as Rajesh Pal. We are joining
10:19in. Ashish, we were speaking about SEAT before I had to head into the AMFI numbers. What
10:24do you make of the latest development? And there is a capex, a significant capex announced.
10:31In the past, we've seen that that has led to a performance over the next intervening
10:36period of the next few years. Is that something you're anticipating for SEAT as well?
10:41Yeah, I think so. I think firstly, the tyre industry itself is very well poised because
10:47the growth in automobile numbers has been fairly significant over the past couple of
10:53years. So with a lag, I think tyre industry will get the benefit of that and I think that
10:58should be happening now. Also, SEAT itself has been doing very well over the last few
11:03quarters. Their return ratios are improving, cash and balance sheet is going up and profitability
11:08is very smartly moving up. So I think on all parameters, the company is doing very well
11:14and industry tailwinds will also help them. And with the capex in place, I think we can
11:19expect very smart growth in profit and revenue going forward. I think a target of 30 to 100
11:27point to me is on the cards with the one year time frame.
11:35Good morning to you, Ashish and Rajesh. Let's start off with the queries now. The first
11:39one is on YouTube and this one's from Shikha, who's writing in from Delhi. They're talking
11:44about the counter, Devyani International. They say that they saw a run up in this counter
11:50in the last three sessions. Now, Rajesh, this one's for you. What should you do in the short
11:56term for a counter like Devyani International? And also, if you can share your views on
12:01restaurant brands Asia, if there are any key levels to watch out for in this counter as well.
12:07Yeah, good on. So we've seen very strong run up in last couple of weeks for Devyani.
12:12Now, stock managed to be a breakout of almost 8 to 12-week consolidation range. Looking at the
12:18breakout, we believe that now if stocks continues to hold above 170 mark, then possible upside
12:25target we can see towards 190 to 195 in short period of time. So I think those who are bought
12:31can hold the position. Trailing stop loss should be placed at around 170. If you talk about
12:37restaurant brand Asia, stock was in consolidation in last couple of weeks. Again, the same kind of
12:43behaviour we are witnessing is similar to the Devyani. And the way stock managed to be breakout
12:50on almost 8 to 10-week consolidation, we believe that if stocks holds above 108 level for next
12:57couple of trading session, then furthermore, follow buying action may trigger in the stock and
13:02then upside target towards 120 to 125 could be there. So keep your stop loss of 108 to hold the
13:09position in restaurant brand Asia also. Rajesh has got the next question. He's
13:14writing in on WhatsApp and asking about Colgate Palmolive for the long term.
13:18Can it be bought at this current level or should you wait for a dip? The stock is down about half
13:25a percent and trading just below the 2950 mark. Ashish, what's the view on this particular counter?
13:32I think it's a great stock. Over the years, it has given great returns and I don't see any
13:39great merit in trying to time it and trying to wait for a more decline or whatever. I think
13:46go ahead and buy it. In the dental industry, it is still a very clear leader and the company
13:55management has always been pretty investor friendly. So I don't see any significant downside
14:01here. So go ahead and buy it. Keep it for the long run. I think it should still be a very good
14:07capital generator. The next question is from Sameer and the counter they're talking about
14:15is Grinwell Norton. The question is, should you buy at these levels? And if there's a stop loss
14:19as well, Rajesh, that you can tell us on this counter? Stock is almost trading near to its
14:26all-time high trajectory. The way stock has recovered in last couple of trading sessions,
14:31again, stock has regained its upward trajectory. We believe that until the stock is not breaking
14:39below 2450, I think one should remain invested in this stock as long term structure is bullish.
14:46And we believe that once the stock manages to cross about 2700 marks, then possible really
14:52can extend towards 2800 to 2850 also. So I think buy on dip should be a strategy for Grinwell
14:58Norton. Stock is looking attractive across all time. Adani Total Gas is the next counter that
15:05we're talking about. It's currently trading at 985 or thereabouts, up about eight-tenths of a
15:10percent entry today. And the question is from Vishwanath. He's asking about the future prospects
15:14for this particular counter. Rajesh, I'll come back to you on this next one. Okay. So we have
15:21live footage coming through of the Prime Minister making his way. I believe he's walking towards
15:30the office where he's expected to hold the first cabinet meeting today. Remember, we've had the
15:37announcement of the members that will form a part of the Council of Ministers. There will be a total
15:44of 71. And along with the Prime Minister, the total stands at 72. Of course, the maximum number
15:50for this current Lok Sabha of Council of Ministers stands at 81. And so the BJP and the Prime Minister
15:58has a little bit of leeway. Of course, right now, the expectation is that the cabinet will be
16:0330 ministers and of which there are five that are from the allies that have helped the NDA
16:13win the general election. We'll bring you more updates over the course of the day. As I was
16:17saying, we were talking about Adani Total Gas. Vishwanath is asking about the future prospects.
16:22How does it look on the charts? Stock is in consolidation. If we analyze the
16:29short to medium term structure, stock is in consolidation mode. The higher resistance area
16:36on the higher side, the resistance area is placed at around the 1040, 1050 mark. That needs to be
16:42watched closely on the higher side. If the stock manages to take out these levels, then it really
16:47can extend towards 1200 also. On the downside, the important and critical support area is placed
16:53at around 900, 890 kind of level. So that is an important level. If you get any opportunity to buy
17:01in depth towards those levels, support area level, it's a good opportunity again to buy and
17:07accumulate this stock. 890 should be your stop loss to buy and accumulate. On the breakout above
17:121040, 1050, you can add further more position for upside target of 1200.
17:43Currently trading at, but they bought it from a longer term perspective, Ashish,
17:46from a five year perspective, we saw a bit of correction in the stock, but it has bounced back
17:51since then. From a longer term view, would you suggest holding on to it? And do you have any
17:57target on the counter as well? For the next one year, of course. No, I don't have any target. And
18:03firstly, yes, the investor has bought on a fairly strong uptrend and expensive
18:11valuation. But if five years is the timeframe, then I think given the kind of growth rate, which
18:19company has been doing and the kind of expectation which we have going forward,
18:24I think the investor should be able to recover and make profits also. So hold on,
18:30the five year perspective, I think you should make a very decent amount of profit.
18:34All right, got it. It's time to slip into a short break, but we'll be back and we'll
18:38take more queries on the other side. Stay tuned.
20:08All right, interesting data coming through on the Amphi numbers that have come through for the
20:35month of May. And I was talking to you about the significant inflows in equity schemes
20:41in the month gone by of as much as 34,700 crore or thereabouts. Quite a chunk of that is coming
20:48through in the form of inflows into thematic schemes and quite a large number of that 9,560
20:55crore rupees in one scheme in particular. And that is the manufacturing fund that was launched by
21:02HDFC. But then it's still encouraging numbers coming through for the industry as a whole.
21:06Sunil Subramaniam, Managing Director of Sundaram Mutual Fund, joining in to talk about some of
21:11that. Sunil, thanks so much for taking the time. Positive flows overall in equity,
21:16but also strong flows in small and mid caps are continuing. What does that tell you?
21:22It tells you that faith in the Indian economic story is strong within the investing public.
21:29I think the investing public is not worried about valuation. They are not worried about
21:34what FII think of India's attractiveness in other countries. What they are able to see at the ground
21:39level is a strong focus on infrastructure, the leadership of the Prime Minister in terms of
21:45setting longer term goals, preference over shorter term consumption kind of expenditure.
21:52Clearly, these reflect the main numbers when the campaign was on and all the data was in
22:00the public domain about India's growth story and all that. So, I think it's basically been
22:04a reinforcement of that in the customer's mind. And bear in mind that related to bank deposits,
22:11equity markets are still giving very healthy post-tax returns, probably double the return
22:16of a bank deposit, which is what the equity market is delivering. So, I think the customers
22:20are happy and those who have started SIPs have found that their values have grown and it just
22:24reinforces their faith. So, I think it's all in all a good growth story. You saw the GDP numbers
22:31came also much higher of expectation for India. So, I think it reflects the confidence of the
22:38Indian investing public. Which is a point well taken. But Sunil,
22:41any comments about the lumpiness of some of these inflows? There is quite a substantial amount of
22:48money that is flowing into thematic. Of course, that is because of a new fund offer. But it still
22:54stands at what 19,000 crore rupees of which 9,000 crore rupees can be accounted for by that one
22:59fund. But then it's still a substantial amount of money going to thematic schemes. And I'm seeing
23:05what an 80% plus overall into equity. I'm talking about 20% increase in the inflows into small cap,
23:1145% increase into mid cap. Lumpiness is tough to deal with from a fund perspective?
23:17Not necessarily. If you see that two things, one is the nature of the team. This was a
23:22manufacturing fund. So, the nature of the team is very close to India's economic growth story.
23:27The second is that small caps and mid caps are well known to outperform when the domestic
23:32economic growth story is good. It's when that suffers in the large caps as a safety element
23:37come into play. So, I think clearly the kind of thematic fund the money is coming in,
23:41it will also get deployed into the small and mid cap stocks. So, I think overall,
23:46the closeness to the domestic growth story is what is playing on investors and the distributors' mind.
23:52I think you should also give credit to the mutual fund distributors who have been channelising the
23:57money into these funds to SIP. I think that's another strong thing you should look at. That
24:03people are choosing to put their money through SIPs also increasingly rather than your lumpiness.
24:09That's because the NFO came at the right time with a well-known brand and some amount of that
24:14money is something that has gone to other schemes. So, the NFO happened to be at the
24:18right place at the right time and got it closely linked to the domestic story. So,
24:21I think that reinforces the continuity of Indian flows for the near term future. I don't think
24:27there is a cause to worry and the market would get valuation support from a broader base from
24:32these inflows from domestic investors. Last question from my side Sunil and this
24:36is something that I have noticed in the last few months at the very least. Arbitrage funds once
24:40again getting inflows of 12,750 plus crore rupees or thereabouts. There is a bit of a shift from
24:47overnight and liquid funds to this. Is this healthy? Is there something that you would say
24:55investors should be cautious about or is this par for the course? No, no. So, the nature of
25:01these flows are essentially from institutional money. These are not retail flows. So, when
25:07institutions are looking at it, there are two things to it. See, they saw a heightened sense
25:11of volatility in the market in the run-up to the election because they were from mid-April. FIIs,
25:16you know, with some news coming around low polling and all of that, FIIs were nervous,
25:20were selling. So, Indian markets' volatility are heightened. Arbitrage funds deliver better
25:24returns when there is heightened volatility in the market. So, I think institutional investors
25:27are aware of this. The second aspect to this is that there is a tax efficiency to investing in
25:32arbitrage because these are considered as equity taxation. So, whereas overnight and liquid funds
25:37are treated as normal taxation, the debt taxation benefits were withdrawn in the previous budget. So,
25:42to that extent, even if you make, let's say, a 4% return from arbitrage, that's much better
25:48than making 6% or 7% from a liquid or overnight case. So, smart, savvy corporates sensing the
25:54volatility in the market and an opportunity for arbitrage to give slightly better returns
25:59are playing on the tax advantage of it and allocating the money. So, this is not something
26:03that we need to advise them. They are very smart. They have their own treasury to take a call on
26:07this. I don't think retail investors are rushing into arbitrage funds. So, there is no cause for
26:11worry in terms of whether they are doing the asset allocation right or not. Fair point. Thank you so
26:16much, Sunil, as always for taking the time. Much value with the insight that you have provided.
26:21Thank you. Well, that was Sunil from Sundaram Mutual Fund talking about the Amphi data.
26:29But let's get back to the queries and this one is on Maruti. This one is from Suresh from Kerala.
26:35They say if this is the right time to buy Maruti. Now, fundamentally, of course,
26:39Maruti was the biggest gainer in the passenger vehicle export segment. But let's see from a
26:45technical point of view. Rajesh, would you suggest buying at the current levels for something like
26:50a Maruti? So, overall structure for Maruti is on the bullish side, but on the near-term structure,
26:57stock is consolidating. The consolidation is happening at the higher end of the price action.
27:05So, yes, one can buy and accumulate Maruti. Those who wants to buy on breakout, they can wait for
27:1213,000 level to cross. Once that level cross, then breakout trade will, you know,
27:18takes place and then possible target towards 13,400 to 13,500, we can see short period of time.
27:26But again, looking at the near-term short-term structure, we advise here to buy and accumulate
27:31the stock as across all time frame, the stock is bullish. Your stop-loss should be placed at around
27:3712,500 and on the higher side, we can see a target towards 13,200 to 13,400 going forward.
27:46Coming back to you, Rajesh, on this next one. Mohnishankar Pathak, who is writing in from
27:50Kolkata wants to know about ITC. He's got 200 shares that he's bought at level of 436. He's
27:55looking for a short-term view of about a month or so. The stock is currently trading at 438,
28:00which is very close to the buy price. Yeah. So, stock has recovered from its
28:05recent low and looking at the near-term structure, we believe that stock is now negotiating with its
28:10multiple supply zone, which is placed at around 445 level. Once the stock manages to take out
28:16this 445, then there could be a rally towards 460, 470 kind of zone. So, I think it should
28:21hold the position with stop-loss of 430. All right. Got it. Unfortunately, we're
28:27completely out of time here on this edition of Ask Profit. But we'll be back tomorrow and we'll
28:33take more queries. Thank you so much, Rajesh and Ashish for joining us today and for answering
28:37those questions. And viewers, don't worry, in case we were not able to take your questions today,
28:42we'll definitely take them tomorrow. So, keep writing to us. But don't go anywhere.
28:46We have lots more lined up for you on NDTV Profit.
29:37Thank you.
30:07Thank you.
30:37Thank you.
31:08Thank you.
31:13Hello and welcome. This is NDTV Profit, where we are taking stock of how markets are faring
31:38at the moment and they are faring well this Monday morning, even though it's a quiet market.
31:42We are seeing advances for a handful of these industries. So, the Nifty is up around 0.2%.
31:48The Bank Nifty is up around then, just by as much. And in terms of the pull and push,
31:54while we do have advances for a handful of banks, which includes something like an Axis Bank,
32:00there is a little bit of weakness seeping in as far as some of your other banks are concerned.
32:05In terms of what's also buzzing as far as your key benchmarks go, there are a lot of names out
32:13there, but not too much to speak for. Of course, HDFC Bank declining by around 0.5%. The small
32:19cap index is up around 1, 1.35%. The mid-cap index also largely moving in tandem with the
32:25benchmark. So, again, there has been a little bit of traction, but on the whole, it's been a very,
32:31very quiet day of trade today. And while we are building on the kind of gains that we've seen
32:37over the previous few days, and of course, today we made a new life high with the Nifty hitting
32:4223,400 at one point in time, we're off days highs, but gains all the same.
32:48And in terms of your broad markets, to very quickly take a look at what's really buzzing
32:53in trade, even if you consider something like the mid-cap sector at the moment,
33:02just top 100 mid-cap companies, well, we have gains in something like Patanjali Foods,
33:09which is up around 5.9%. Then, of course, Paytm is advancing by around 3.9% as well.
33:16And building on the kind of gains that we saw last Friday too, we have Z Entertainment up 3.8%,
33:23Yes Bank up 3.8%, and Prestige Estates is the other one, which continues to move
33:30forward. That's up around 3.7% as well. In fact, Prestige Estates is at another life high at the
33:38moment. What's weighing down on the indices is something like a Poonawalla Fincorp, that's
33:45down around 4.1%. Then, of course, I'd reckon that we've had some governance issues being raised by
33:54a board member in Suzlon, which is why we're looking at some amount of weakness there as well.
34:00Suzlon is down around 4%. Of course, we need to still ascertain as to what specific these issues
34:06are. And we've had an issue, or rather a release come from the very company itself on the exchanges.
34:16And then besides that, we have CoForge. CoForge is down around 4% as well, followed by Persistent
34:23Systems and Emphasis. In fact, KPIT Technologies is also down. So we have about three to four
34:30mid-cap IT companies which are under pressure this afternoon. It's something that we're going
34:36to keep an eye on. However, if you consider the overall mid-cap index, we have about 60-odd
34:41advances per 40-odd declines. And that's, again, not too bad as far as the bulls are concerned from
34:49their point of view. The question is, where do we go from here? And how do we expect things to
34:55pan out? But on that note, let's move on and talk about GSW Energy. Now, GSW Energy has signed an
35:05MOU with GSW Steel for a green hydrogen project. And Vikas Srivastava caught up with Sharad Mahendra,
35:12Joint MD and CEO of GSW Energy about the purpose of the new project and its viability. Listen in.
35:21So I would like to start with this new project that you have started for
35:25your group company, GSW Steel. What is the entire purpose of this and how it's going to
35:31benefit both the companies? See, when we say about green hydrogen, that is where global
35:38plans by 2030 is to have a green hydrogen capacity in excess of 60 million tons,
35:44which is a large capacity. And we also want to be future ready to be the major supplier of green
35:51hydrogen in the energy space. And also, our group company, GSW Steel, for which we are setting up
35:59this project, which is the largest, country's largest green hydrogen project. For them also,
36:08they have a plan to manufacture green steel for wherein green hydrogen plays a key role.
36:15So, it is a pilot project which we have started. The work which we have started on ground,
36:21which will make us ready as a supplier and GSW Steel as a user of green hydrogen. So,
36:27this will give us a long, big learning. And as we have entered also into an MOU with
36:32our group company, GSW Steel, for 90,000 tons of green hydrogen by 2030. So, this is a pilot project,
36:40which is country's largest project, which is 3,800 tons of hydrogen per annum,
36:45which is equivalent to 25 megawatt capacity of energy, solar energy. So, this is what the ground
36:52work has started, project work on ground. And we are confident that in quarter four of current
36:58fiscal, this project will be commissioned. Okay. So, you said this is one of the largest
37:04projects in India that you will have done. So, recently, we also met the management of Gale,
37:10and they said that the issue or the challenge that they are facing for their project that they
37:14all are setting up is that the pricing is still very high. It's close to 500-600 rupees per kg,
37:20where the commercial viability of that becomes slightly challenging and finding customers,
37:25because grey hydrogen is available at less than one third of that price.
37:29So, what according to you is going to be the viability of this project? I mean, if,
37:35would you like to only stick with the CAPETIP projects or you would be looking at commercial
37:39projects as well? Yes. I agree that today, the price levels,
37:44costs which are there are on a higher side as compared to the grey hydrogen.
37:49But in this particular project, one portion of the cost which is significant is the storage
37:57of hydrogen and then supply. Here, there is no storage. So, that which has resulted in
38:03optimizing the cost and giving us the desired returns what on which benchmark returns at which
38:09GHW energy works. Here, there is a direct pipe, it's a co-located plant, where the GHW steel
38:15manufacturing facilities are there. It is in the same facilities where we have our GHW energy
38:20facilities are there. So, we are producing, commissioning, going to commission this project
38:25there. And it's a direct supply through the pipeline, which has reduced the cost and has
38:31given us the desired returns. But yes, going forward is still when taking care of the CAPETIP
38:39requirement and also looking towards the possibilities outside. We are going to be
38:46ready after the commissioning of this project. And as and when we see that the costs are optimizing,
38:53the prices are such that it is giving us the desired benchmark returns, we will be open for
38:58even outside the group CAPETIP requirement. And not only this, even going downstream,
39:03whether ethanol, methanol or green ammonia, all these areas also we are continuously exploring.
39:10And as I said, as and when we are getting the desired returns, we will be going ahead in that
39:15also. Right. So, just to take it a little more, if you can highlight a little more on this
39:20and give more details in terms of what is the cost of pricing you are getting it,
39:24if you are setting up a project without storage and with storage?
39:28See, as I told you that when we do a project with storage and without storage, apart from storage,
39:36there are many other factors also. But there is definitely a significant 20-25% cost optimization,
39:42which happens if you are not setting up a storage facility and directly supplying
39:47through the pipeline. So, that is what we allowed us to venture and get the desired returns on this
39:53pilot project. But this project also should be seen that protecting our returns and also it is
40:02being a largest green hydrogen plant also as a learning. Also, I take this for us as JSW Energy
40:11and also for JSW Steel to be future ready when it is giving, the cost optimizes. So,
40:19we are also making ourselves future ready with this project.
40:23One more last question on this topic. Last time when we met that you had said,
40:27you are kind of fast tracking your overall investments of close to $12 billion to reach
40:33your 20 gigawatt by say 2030, which you are now planning to achieve by 2028 or something like that.
40:40So, what percentage of that investment would be towards a green hydrogen and related areas?
40:48See, one is that 20 gigawatt when we had set by FY30 was pure generation capacity.
40:55All storage capacities, whether green hydrogen or storage capacity is over and above that.
41:01So, when we talk of the capacity, we had set 20 gigawatt by FY30 as you are right.
41:08And the first milestone was, the first phase was 10 gigawatt by FY25, the current fiscal.
41:14So, I am happy to tell that we are absolutely on track to achieve the numbers of phase 1
41:20of 10 gigawatt plus. We are absolutely certain that in the current fiscal, we will be crossing
41:25that number of 10 gigawatt. And we are working on our capacity addition target to reach a capacity
41:34by FY30. Then that is the time when we will be working on, we are continuously working to announce
41:39a revised number for FY30, because this 20 gigawatt of FY30 number is definitely happening
41:45significantly earlier, with the kind of order books and our participation and being successful
41:50in the competitive bid space, the kind of capacity order book which we have. So, we are on track
41:57to deliver what we have said a few weeks earlier to you also, that we will be fast tracking our
42:04growth. So, we are absolutely on track. Coupled with this green hydrogen, as I talked apart from
42:09that, the energy storage. Because before I come to the details of our energy storage plan,
42:17it is important to note that what is the kind of demand growth and the growth pattern.
42:22See, we are seeing a growth, demand growth continuing. And first two months have demonstrated
42:27that with the extreme weather condition, even with other factors of urbanization, manufacturing,
42:32everything, the demand growth is healthy and will continue to remain in that range.
42:38Even if we take a conservative demand growth of, say, 6-7% only, that also in energy terms
42:44means a significant number. If we see last year has ended with the country's demand in energy
42:50terms of almost close to 16-25 billion units. And even if I take a 6-7% conservative demand growth,
42:58which means every year, at least 125 to 130 billion units are required, for which when
43:05we convert into megawatt capacity additions, what will be required is even assuming 5-6
43:11gigawatt every year, thermal will also get added. Balance out of the 20 gigawatt capacity,
43:18which is required to meet this incremental energy every year.