-#UltratechCement buys 23% stake of #IndiaCements.
-#Nifty, #Sensex rise as #RIL, #ICICIBank lead gains.
Get all your stock-related queries answered by our technical and fundamental guests with Alex Mathew and Smriti Chaudhary on Ask Profit. #ndtvprofitlive
-#Nifty, #Sensex rise as #RIL, #ICICIBank lead gains.
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
00:30Good morning and
00:59thanks so much for joining in. You're watching Ask Profit on NDTV Profit. My name is Alex
01:03Mathew and with me is Smriti Choudhury and we will take you through the next half an
01:07hour or so of trade. Like the name suggests, this is a show geared towards getting all
01:12of your stock related questions answered and to that end, you can send all of those questions
01:17to us on that number on your screen or in fact on any one of our social media platforms.
01:22And what a day it's been for the equity markets today. We're within touching distance of all
01:28time highs. In fact, we could well close at an all time high and 24,000 is on the cards.
01:34We still haven't hit that mark. Let's in fact pull up the benchmark. It's been quite a bit
01:38of chop and churn and if you pull up the intraday chart, you will see that we have come off
01:43the high point of the day at one point in the session, but we've recovered from that
01:48low point as well and hovering above that 23,900 mark in trade today, just about 70
01:56cents or so away from 24,000 and what a landmark that would be. The broader market is doing
02:00quite well and in fact are gaining more than the benchmark. At least the mid-cap index
02:05is at this point. The small cap index has come off quite sharply from the high point
02:10of the day. At one point, it was up as much as 7 tenths of a percent. The market breadth
02:14was in favor of the advances, but then that gap has been closed very substantially and
02:19in fact at this juncture, you have more declines than advances. But forget about everything
02:25else. The big sector that you have to focus on today and a few names in that sector is
02:29the cement space and the reason being is that there has been a large trade, there has been
02:36a significant amount of stake of India Cements that has exchanged hands and it has come to
02:41light in fact exclusive information that NDTV Profit has picked up that RK Damani, a significant
02:49stakeholder in India Cements to this point has probably sold his entire stake to Ultratech
02:55Cement. The details of that, the confirmation of that will likely come through over the
03:00course of the day. This is a significant deal, but it is a non-controlling interest. So,
03:07what does it mean for minority investors in India Cements and what does it mean for Ultratech
03:12Cement? To give you some perspective and to tell you about the valuation that the deal
03:18puts India Cements at, I am joined by Agam Vakil. Agam has been looking at it since morning.
03:24Agam, what can you tell us at this point? Right. So, well, from what we understand of
03:28course is that about a little over 7 crore shares were traded earlier on in block deals
03:33in India Cement and Ultratech Cement was the company which in fact bought this stake in
03:39India Cement. The stake comes to roughly 23% of your overall equity. Now, sources who are
03:46in the know have suggested that at the moment it is in fact Radhakrishnan Damani and related
03:53entities who have sold this stake in India Cement at Rs. 267 per share. Based on that,
04:01the valuation that we are getting as far as the enterprise value to tonne currently stands
04:07at roughly around Rs. 7500 per tonne. That in turn comes to roughly $90 and that is largely
04:16in line with the kind of metrics that we have seen of late. Remember that the Pena Cement
04:22acquisition was also made roughly around $91 and perhaps this is in line with what we are
04:30working with. That's as far as the valuations are concerned. The next few steps will of
04:34course will depend on the confirmation and that confirmation of the seller as well will
04:41come through towards the end of today. But all in all, this is how the deal has spanned
04:46out. It's going to be a wait and watch as to what Ultratech Cement has in mind with
04:51respect to India Cement going forward.
04:53Thanks so much Agam for getting us those details. Let's jump straight to our experts. We are
04:57joined by Vineet Bulhinskar who is Head of Research at Ventura Securities as well as
05:01Ayush Mehta, Technical Research Analyst at Timbalbang. Thank you so much gentlemen for
05:04taking the time. Coming straight to you Vineet on this deal, it's quite an interesting one
05:09particularly because India Cement, the fundamentals weren't the best. It is a company that was
05:14struggling with capacity utilization, pricing pressure in the South markets as well. And
05:21as of now what we know is that this is not something that is going to immediately bolster
05:25the capacity for Ultratech Cement because it is not something that will at this point
05:32turn into control. So what is in it for Ultratech Cement 1 and what is in it for the shareholders
05:38of India Cement? So a couple of things is that one is that overhead supply which the
05:46money might be looking to sell in the markets has been absorbed by very strong hands. So
05:50you can rest assured that the trend will stay there. And with Ultratech coming in, there
05:55is a possibility that over a period of time, this gets converted into an acquisition. Ultratech
06:02may not want to acquire this at this point in time because they have significant capacities
06:08in the region and their game would most probably be that if anybody else wants to acquire this,
06:15you make it expensive for them because you have a significant stake out there.
06:20Okay, so then from that perspective, what would you do as a shareholder and prospective shareholder
06:26of both of these two companies or rather somebody that is looking to invest into the cement space?
06:32What would your preferred pick be? And if you are a prospective investor or an investor
06:36in Ultratech or India Cements, what should your approach be?
06:40So I would go with my sector's topic that is Sagar Cement in the southern region,
06:48rather than play India Cements because they have really been starting to get their act together.
06:54And we believe that Sagar Cement is one of the best players out there who have added value.
06:59And we expect that company to do well since it is well-placed to grow from the
07:07two states of Orissa and Andhra Pradesh in terms of allocation of plants.
07:13Thank you so much, Vineet, for that perspective. So,
07:17Vineet's pick remains Sagar Cement in the cement space. But let's start off with the questions.
07:24The first one is from Snigdha, who's writing in from Delhi. The question is on CESC. That's the
07:30name of the share that we're talking about. Ayush, coming to you on this one. They bought the shares
07:34at a price of 75 rupees. It has significantly been higher in the last five sessions. Do you
07:40see more upside from here or should you book profits? Well, CESC is performing quite well
07:47in the entire 60-meg chart. It's a good flat pattern. And once it crosses 170,
07:51there's going to be a new rally which can take the stock towards 195. So, at these levels,
07:56I would recommend to trade with trading stop-loss by keeping the trading stop-loss at 162
08:02since she's holding from a lower level. So, 162 is a very good stop-loss here
08:06and can be voted for a target of 185-190. Okay. Coming back to you, Ayush, on Larsen and
08:12Toubro. And this is a question coming from Dheeraj. He's looking to invest or rather he's
08:18looking to buy a significant quantity. He's looking to put as much as 10 lakh down for a
08:22period of six months. Would you suggest a buy at the current level and what kind of levels would
08:26you look at? Well, L&T is consolidating right now. There's an average support at the lower levels
08:33which is at around 3540 odd levels. I think that is a very good buying zone. I would recommend to
08:40divide the capital from 3540 to 3500. Between these 50 points, he can definitely invest into
08:49the stock and the long-term view is very positive here. The first targets I'm looking here is at
08:534000 levels. All right. Next counter is Aegis Logistics. This one's from Murali. They bought
09:00the counter at a price of 458. Significant profit there in the counter, Vineet. Do you happen to
09:07track this counter? And if you do, would you suggest booking profit considering there is a
09:12good amount of profit here? No, I would suggest that the client's investors hold on to their
09:19stock. It's a super stock company. They understand their business very well. They've got their
09:25capital allegation on track and they're looking to double their asset base. And they're one of the
09:33most frugal, most cost-economic companies globally in terms of gas storage. So I believe
09:42that they will do very well. LPG has got a bright future in the country and they're looking to add
09:47capacity. So if you keep holding on to this stock for a few years, I think you'll get massive value
09:54out of it. Okay. All right. That's the view on Aegis. And do you like any others in the logistics
10:00space? Because there are few to choose from. And I'm curious about whether you would pick Aegis
10:08first or something else. There are specific plays. So Aegis is a very specific play on gas.
10:15The other specific play that we like is Tarachand, which is very specific to the
10:21renewable energy space. And it's quite available. It's a small cap company with great growth
10:27prospects. And I think that is another stock that can do really well.
10:31Next question is from Priyanka and she's writing in from Bengaluru. She's asking about Sigachi
10:36Industries, which is trading at 72.6 or rather which she bought at levels of 72.6, I think.
10:42And yeah, and it's currently trading below the buy price. So she's wondering what to do.
10:47I'll come back to you on the charts, Ayush. How does it look and would you hold on to this?
10:52Looking at the charts of Sigachi, it has been in that consolidation from quite some time now.
10:58Well, there's a very strong support zone, which is at around 59 levels, which is its 200-day
11:03moving average. Till the time it is holding that on the closing basis, I would still recommend to
11:08hold the stock. The big rally will continue in this stock only above 70 levels. Till the time
11:13it is holding 59 on the closing basis, definitely should hold the stock.
11:17The next counter is Bharat Electronics. The question is from Sai, who's writing in from
11:21Andhra Pradesh. They bought the counter at a price of Rs. 317. Vinit, coming to you on this one,
11:29it seems like they bought at elevated levels and we've seen a bit of correction in the counter. If
11:35you can pull up the chart for the last week, you'll see a little bit of correction. The stock
11:42has come down. What would you suggest to somebody who may be holding from a longer-term perspective?
11:51I think you should hold on to this stock. This company will tend to do well. We are seeing the
11:58Modi government come back in place. And since the elections, we have seen them get the cabinet that
12:06they want. Their speaker is theirs. The deputy speaker is also theirs. And a number of policies
12:12are now being rolled out. There is no such real opposition to that. The members of the syndicate
12:23are looking to support the government through and through. So I think the PSU momentum will come
12:28back. And BL is a very important player from the perspective of electronic manufacturing,
12:35defence, and also from other manufacturing areas. So I think this is one stock that you
12:42should hold on and not get too perturbed with the slight loss that you are facing currently.
12:47All right. We'll slip into a short break now. But stick with us, Vinit and Ayush. We'll be
12:52back and we'll take more questions on the other side. Stay tuned.
13:22Thank you.
13:52Thank you.
14:22Thank you.
14:52Thank you.
15:22Thank you.
15:53Thank you.
15:55Welcome back. You're tuned into Ask Profit. We were taking your questions. And if you haven't
16:00written to us, do write to us on any of our social media channels, even a long-term query or a
16:05short-term trade that you want to take. And we'll take your questions. Ayush, coming to you on EMS
16:10Limited. We have a question from Nikhat who's writing in from Bangalore. The question is,
16:14should you buy EMS at this point? You look at the way the stock has gone up. It's about 50%
16:23up in the last six months itself. Do you see this is a good buying opportunity or should you wait
16:28for some correction? Talking about EMS, it's a recent listing. I think it was listed in September
16:35on 23 only. Right now, I don't have much data and stock is more significantly up. So by looking at
16:41the current data, what I have, I'm looking for some retracement. If I get it around 570 levels,
16:46then definitely that's a very good buying opportunity. Right now, I wouldn't recommend
16:50to buy it at these levels. I'm just going to go across to you as well, Vineeth. Any
16:56fundamental view on this? EMS players, by and large, have been in focus for obvious reasons,
17:01but this particular counter? It's a water stock that is listed fairly recently. And they've been
17:09getting good traction in terms of business as well as margins. So I would go with this
17:18stock more as a momentum player than really want to accumulate it as part of my portfolio.
17:24Back to you on another counter. Inox Green. Actually, no, this is a short-term query.
17:29Inox Green is a question coming in from Sushila. Sushila is writing in from Billari and has bought
17:36at levels of 169, 333 shares. What are the targets in the short-term, is the question.
17:41What does it look like on the charts? Talking about Inox Green, I had recommended this stock
17:46day before yesterday at 170 levels only, and my target was at 180, which was a short-term target.
17:50But again, Inox Green is looking good at 10 levels weekly or monthly. There's a good black pattern
17:55formation on its monthly chart. It definitely should hold this stock for the short-term
17:59targets we are looking here is at 200 levels. Understood. The next question
18:05is Moschip Technologies. That's the counter. The question is coming in from Swastik,
18:12who is writing in from Budapest. They bought the shares at a price of 98 first and then
18:18some accumulation at 179 as well. The stock is currently trading at around 278 rupees.
18:25Ayush, coming back to you on this one, the stock has, what a rally it has been in the last one
18:30month. It's doubled in the last one month. Would you suggest booking profits at this juncture?
18:37Talking about Moschip, I think it's a BSE-only stock, as I cannot find it on NSE. It's currently
18:42trading at around 279 levels, down from 325 levels. It has shown a phenomenal rally with volumes.
18:49But I wouldn't recommend buying at these levels because my risk-reward is not favorable and since
18:53it's a BSE-only stock, so I don't think so whether it will be very volatile or not from now on. So,
18:57I think the ideal buying zone is at around 200 levels. If you get it at around 200 levels,
19:02then it is a buying zone. Otherwise, those who have the position, I would recommend to book
19:07profits here. All right, tuning in all the way from Budapest. That's some commitment. Thanks so
19:13much for joining in. From relatively closer, from Surat, we've got Vaibhav, who's asking about
19:19Vedanta. And he's wondering whether he can invest a sizable chunk, as much as 17,000 rupees. He's
19:25looking to invest for the long term. A few overhangs with regard to the ownership, right,
19:31Vinit? But would you say that it's still a good play fundamentally? No, no, definitely. I think,
19:37you know, on a longer-term basis, we are going to see metals come into deficit. And Vedanta is going
19:43to be one of the biggest beneficiaries of that. Definitely would go long on the stock. You know,
19:49but I would want to stagger my quantities and buy it in a creeping manner so that I get a better
19:56input price. All right. Vinit, coming back to you on Jupiter Wagons, the question is from Karthi.
20:03The question is, should you buy at these levels, considering the rally in railway stocks,
20:09including Jupiter Wagons in the last one year? Would you suggest buying right now?
20:14I think it's a great portfolio stock to own, maybe a little late in the, you know, wanting to buy it.
20:21But yes, you can go with us, reduced allocation on this stock. Okay, reduced allocation on Jupiter
20:27Wagon. And part of the group of stocks that has run up quite substantially, a group of stocks that
20:32has not run up very substantially is the IT pack and frontline IT counters among them, Tata
20:37Consultancy Services. Sesamani from Coimbatore is holding on to Tata Consultancy Services
20:44at this junction. He says that he's at cost more or less. He's wondering whether to hold
20:49for the next two years. Aish, what are the technical levels suggesting? Talking about
20:54TCS, TCS has shown a good flat pattern formation in this daily chart. And it was, it has given a
21:00break on its 50-day moving average at currently around 390, 390 levels. But the long term charts
21:05are positive weekly or monthly. So I would recommend to definitely hold the stock. The
21:10first target I'm looking at is 4200 levels. All right. Aish, the next counter is Happiest
21:15Minds Technologies. The question is from Raj. Okay, the question is, it's about 5% of their
21:25portfolio. Now, should you buy at these levels is a question considering, okay, they have already
21:30bought the counter at 823. And the target that they're looking at is 1000 rupees. We saw a bit
21:36of correction in the counter after a block trade. Do you see that sort of upside happening for the
21:43stock? Well, it's very difficult to comment whether it's going to go 1000 right now. It has
21:49shown a good profit broken from those levels and finally trading at around 825. But it is at the
21:54average of 100-day and 50-day, which is at around these levels only. So I would recommend to hold
21:58the stock with a stop loss of 820 rupees, which is I think 5 more rupees from here.
22:02If that is broken, then I would recommend to exit because I think it can break 800 levels as well.
22:08Got it. All right. A few stocks for you to consider, Vinit, you don't need to talk about
22:13all of them. But if any of them catch your ear, do let me know. This is a question from Satish.
22:18He's looking at buying one or two stocks for the next two to three years. And the stocks that he
22:23has listed are Sriram Pistons, Precall Limited, Sansera Engineering and Mothersun Wiring.
22:31So I'll go with Sriram Piston and Sansera Engineering.
22:36So out of those two, therefore, what is the kind of rationale that you're seeing? And
22:41what are the fundamental reasons why you're saying that you should go for those?
22:44The Sriram Piston has done a great play in remodeling their portfolio to be suited for EVs.
22:50It's a low equity based stock doing very well, good margins. And Sansera is a play on the
22:58India manufacturing, outsourced manufacturing, and they're very, very good with technology.
23:04They are focused on aerospace, and they're doing a great job about it. However, this will be a
23:09slow moving counter. All right, got it. Next question is from Utsav, who's writing in from
23:15Mumbai. Ayush, coming to you on this one, the counter is Nosil. And the question is,
23:21why hasn't it performed in the rally? And would you suggest, okay, that's the only question.
23:29But so it seems like they're already holding the counter. What should you do with the counter,
23:36if you're already holding it? Nosil have shown some profit booking
23:40at higher levels. Currently, there's a support of 267. If someone can hold for 10 more rupees,
23:47I think that will be a very strict stop loss here. So I think you should hold it for 10 more
23:51rupees by keeping a strict stop loss of 267. Shilpa has got a couple of questions. I will
23:59choose to take one though, Shilpa, and I'm focusing on Apollo Hospitals. Ayush,
24:03she's bought at levels of 6250. The stock is currently trading below that, but not by a very
24:08large margin. She's wondering what to do for the short term. What would the strategy be?
24:15Talking about Apollo Hospital, it has got a weekly trendline support at around 6000 levels,
24:20so which is 130 rupees from here. Although it's a very big support zone, I don't think so it will
24:26break 6000 level and I should, and I recommend to continue to hold the stock. I think she will
24:31make the profit in this stock. It can go above 6500 as well. The only thing is 6000 levels are
24:37waiting for India. All right. The next counter is Lemontree. The question is from Ramesh.
24:42Vineet, would you suggest buying Lemontree at these levels? Brokerages seem to be constructive
24:48on this counter from a longer term perspective. Can I recommend another stock? I think Apijay
24:55Group of Hotels looks very good and you will get a better valuation from that stock,
25:03better realisation. Okay, so I have not looked at Apijay specifically, but Vineet,
25:08based on what I have seen on Lemontree, they are kind of transitioning the way that they
25:14operate, right? They are moving into a different, so rather than owning off all of the keys,
25:22they are moving to a more management style and leasing out of their properties. Is that it? No,
25:27they are moving into subcontraction. Am I right? Yeah. So they are moving more towards
25:33adding a portfolio of rooms, which is more managed than owned. And that is a reasonable
25:42strategy which is going on, which we call the asset light strategy. They should definitely do
25:47well. Hotels and tourism is a very booming sector. But Lemontree and Apijay have the same ARRs.
25:56Mostly. And Apijay has got a very, very good lineup of hotels which are getting operational.
26:03It is cheaper than Lemontree. And you can put on a good 50% upside on this stock faster than what
26:12you would gain in Lemontree. Interesting, interesting perspective. Thanks for clarifying,
26:16Vineet. Worry Renewables. We have got a question from Sujith.
26:21Bought at, let us pull the chart up just so that I know what is, yeah, all right. So it bought at
26:26levels of 2012 or thereabouts. It is currently trading at 1900 plus. What is the potential
26:32upside from this point? Are you showing the charts? Well, I do not have the data of this stock.
26:40Any coverage, Vineet, on the fundamentals? What would you do with something like this?
26:44No, we do not have coverage on this. But I can definitely tell you that it has run up too far,
26:51too fast. The stock is going to consolidate. It can lose a little value. But for the long run,
26:57I think with the next few years momentum that is going to play out in solar and wind,
27:03I think Worry Renewables will do very well. All right. Thank you so much, Vineet, for that
27:09perspective. And with that, we are out of time. But we will take more questions tomorrow. So
27:19do keep writing to us your queries. And thank you so much, Vineet and Ayush, for joining us and for
27:25answering those questions for us. And viewers, thanks for tuning in. We will be back tomorrow.
27:30As I mentioned, do keep writing to us your queries on the WhatsApp number or on any of
27:35our social media channels. But until then, we have lots more lined up for you on NETV Profits.
27:39Stay tuned.
30:35Hello and welcome. This is Hot Money. I am Argun Wakhil. And in this show,
31:00we take you through all the stocks in the sectors which are buzzing in trade.
31:03But before that, a quick look at markets. And they are looking good right now. It does
31:07seem like the Nifty, which is extremely choppy today, is currently managing to sustain in the
31:16green, up by around 0.4 percent. And it's the same for the bank.