Ask Profit | ABB India In Focus | NDTV Profit
-#ABBIndia's Q2 profit rises 50%.
-#Nifty trades above 24,300; #Sensex adds more than 700 points
Get all your stock-related queries answered by our technical and fundamental guests with Alex Mathew on Ask Profit. #ndtvprofitlive
-#Nifty trades above 24,300; #Sensex adds more than 700 points
Get all your stock-related queries answered by our technical and fundamental guests with Alex Mathew on Ask Profit. #ndtvprofitlive
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TVTranscript
01:00I'm going to show you a little bit of what I've been up to in the last couple of weeks.
01:07I've been doing a lot of different things.
01:09I've been doing a lot of different things.
01:11I've been doing a lot of different things.
01:13I've been doing a lot of different things.
01:15I've been doing a lot of different things.
01:17I've been doing a lot of different things.
01:19I've been doing a lot of different things.
01:21I've been doing a lot of different things.
01:23I've been doing a lot of different things.
01:25Hi, thanks so much for joining in.
01:35You're watching Ask Profit on NDTV Profit, and my name is Alex Mathew.
01:38Like the name suggests, this show gets you answers to all of your stock-related questions.
01:42To that end, you'll see a number at the bottom of your screen.
01:45That's where you send your questions to us.
01:47And it can be either short-term in nature or long-term, whatever you need to know.
01:51But make sure you send your question in with your name and, if possible, your location as well,
01:56so that you can understand when we take up your question.
01:59Let's take a look at where the markets are right now.
02:01And, in fact, you see gains across the board.
02:04And it's a solid end to what has been a very volatile trading week.
02:08The big question is, will we hold on to these gains for once?
02:12And perhaps we'll see soon enough.
02:15You see gains of about a percent or so.
02:18And we're holding above the 24,300 mark, close to 24,350.
02:23The broader markets are gaining, but not to the extent of the benchmark index.
02:27And you have the mid-cap index that's up about 0.8%.
02:31And the small-cap index is also up by around that same value.
02:35The market breadth is tilted in favor of the advances.
02:38Remember, this is in tune or in line with what you're seeing across the board in global markets as well.
02:43If anything, that gap has narrowed just a tad bit over the course of the session so far.
02:47And hopefully it holds through for the rest of the session.
02:50All sectoral indices are trading in the green right now.
02:54And you have the nifty bank among them that is trading with gains of about 0.7% or thereabouts.
02:59And you have the IT pack that is leading gains today up as much as 1.6%.
03:04A lot of stocks reacting to earnings in trade today,
03:08whether it's Cochin Shipyard or in fact, ABB India, which we're focusing in on.
03:13And in fact, that is the focus for the day.
03:16Cochin Shipyard on your screen.
03:18But ABB India, given up a bit of the gains from earlier on in the session,
03:22it was up over 3% at one juncture, but it is still up about 1%.
03:27And if we can pull up the longer term charts, you will see that this stock has risen from strength to strength.
03:32And it is on the back of earnings. Look at that.
03:35In the 12 months, it has gained close to 77% or thereabouts.
03:38And the June quarter earnings were quite a super hit.
03:44You have net profit growth of as much as 50%.
03:48And that's on the back of a high base. It's not something to scoff at.
03:52In fact, let's look a little closer at the numbers for ABB India.
03:56And we've got Anushi joining in with some updates also from the conference call,
04:00which took place not too long back.
04:02What is the outlook and what is the reason why we've seen this kind of improvement in the bottom line, Anushi?
04:08Well, the outlook continues to remain strong for ABB over here as per the conference call which happened.
04:14But before we go into that, let's just discuss the numbers that the company came out for its Q2CY24 performance.
04:21Now, looking at the revenue growth over here, a 12.8% of an increase that we are looking in the revenue,
04:26while EBITDA was about 55.7% up.
04:30Even if you look at the EBITDA margins that were about at 19% as compared to 13.88%.
04:35So, the company does say that the extra margin uptake that we are looking at is on the back of the revenue mix,
04:42of a favorable revenue mix on the higher margin side and along with higher order execution as well.
04:48Net profit as a result has seen about a 50% growth.
04:51Also, other point to focus on the margins is the raw materials cost going down by about 4.7%,
04:56while the total operating expenses as a contributor to revenue came down to 80.8% as compared to 86.1%.
05:04In other key highlights also, if you look at the orders, in the H1, if you look at the overall period,
05:10there has been a 13% of an uptick in orders.
05:12But if you just look at the coming, this quarter in particular, a 5% decline in orders that we are looking at.
05:18This was due to the base cycle orders.
05:20But the company does expect this to also pick up going forward.
05:23Order backlog stood at about 9,500 crore as compared to 7,700 crore.
05:28Now, coming to the CONCOL highlights over here, it sees large orders coming in from emerging sectors.
05:33PAT, as explained, expanded due to the favorable revenue mix.
05:37Export orders were about 39% up and the company did say that, in fact, in revenue also it expected 200 crore more revenue.
05:44But on account of deferment, defer orders, it showed less 200 crore of revenue.
05:52In order backlog, if you look at, 40% to 45% of orders remain in the long cycle side,
05:57while the balance are in the short cycle side.
06:00Now, an important point of raise in ABB is its valuations.
06:03If you look at the trailing PE as well, 139X of PE valuation, while its 3-year average has been about 108X.
06:11And if we go forward to the overall CY24PE also, that stands at about 105X.
06:17So, it is on the premium side, despite the kind of premium valuations that we are looking at, the stock has performed.
06:23In fact, there was an interesting note from UBS as well, wherein it did mention that wherever there has been an earning upgrade for the company,
06:31it has supported those premium valuations also that we look at.
06:35So, these are couple of factors that we have seen from the CONCOL,
06:39strong management outlook for the business going forward as well and strong numbers in focus for today.
06:45Okay, thanks so much Anushi for getting us those details.
06:47I do want to point out that we have the mutual fund data for the month of July that is out
06:54and I am pulling up the data release as we speak.
06:57Let's look at it as I speak to you in fact and you will see some numbers flashing at the bottom of your screen as well.
07:03I am looking first at the overall number and for the overall number,
07:09we are seeing a significant inflow for the mutual fund industry as a whole.
07:14Inflows to the extent of 1.9 lakh crore rupees as a result of which and also the movement of the underlying assets,
07:22you have the mutual fund industry as a whole that has assets under management at the end of July of close to 65 lakh crore rupees.
07:32Now, delving down into the key pockets and we are looking of course first at the equity actively managed schemes
07:39which include the likes of the small cap, the mid cap categories.
07:43For that category as a whole, for the equity category as a whole, you are seeing inflows of 37,113 crore rupees
07:51which is very substantial and is in line with what we have seen throughout in the month of July
07:57and at the end of the month, you had assets under the management in actively managed equity schemes standing at 29.34 lakh crore rupees.
08:08This of course compares with about 40,000 crore or 40,600 crore of inflows in the previous month.
08:17I am looking at the key categories here and you are seeing substantial inflows in sectoral and thematic funds once again
08:24and if you think about it, you have seen close to 40,000 crore rupees come in the month of June and in the month of May cumulatively
08:33and in this month, in the month of July, you are seeing inflows of as much as 18,386 crore rupees.
08:40It's a very substantial number.
08:43This by the way is one of the largest schemes now.
08:45It has come in the second position just behind Flexicap and it's not too far away from pipping it.
08:53In fact, you have the assets under management in, oh, it's actually pipped it.
08:59As I look at the screen right now, you have sectoral and thematic funds which are the largest category in the mutual fund space
09:07for actively managed equity mutual fund schemes and this is a historic moment
09:11because a lot of people making tactical allocations towards mutual funds.
09:15That number stands at 4.21 lakh crore rupees at the end of July compared with 4.2 lakh rupees for Flexicap schemes
09:25which for the longest time have been the largest category.
09:28Take a look at some of the other inflows then and you have inflows of as much as 7,000 crore rupees
09:33that have come into multi-cap mutual fund schemes and this is when the split happened between multi-cap and Flexicap.
09:40Multi-cap remember has a specific allocation of 25, 25 and 25% towards small, mid and large cap
09:47and that is a requirement regulatorily.
09:50That has seen an inflow of 7,000 crore rupees.
09:53Among the other schemes and we are looking at mid-cap and small-cap, you are seeing inflows continue
09:59but it's a little slower than it has been in several months over the last year or so.
10:06The mid-cap mutual fund scheme space has seen inflows of as much as 1,644 crore rupees in July
10:14and the small-cap schemes have seen inflows of 2,109 crore rupees.
10:20Large caps have also gotten inflows to the extent of 670 crore rupees or thereabouts
10:25and Flexicaps as a whole have received inflows of as much as 3,000 crore rupees.
10:31Now remember that July is the start of a quarter and generally you will see the flows in mutual funds reflect that
10:41with regard to fixed income mutual fund schemes and for fixed income mutual fund schemes as a whole
10:47you are seeing inflows of as much as 1.2 lakh crore rupees
10:52and this is what has contributed to most of the inflows into mutual funds in the month gone by.
10:58A large amount of this, in fact more than half of it is in the form of liquid mutual funds
11:04and this is largely institutional investments that come through at the start of the quarter.
11:09At the end of the quarter you see outflows from liquid mutual funds and also fixed income mutual funds as a whole.
11:16To give you some perspective in the month of June you saw outflows to the tune of 1.07 lakh crore rupees
11:23from fixed income mutual funds. This time you are seeing an inflow of 1.2 lakh crore rupees.
11:28That cyclicality tends to take place. You also have arbitrage funds which after the change in taxation
11:36have become less attractive. I am curious about what has happened there.
11:41Let's look at the inflows. Arbitrage funds in the month of July have still seen inflows
11:46and in fact substantial inflows at that. 11,000 crore rupees or thereabouts have come through in arbitrage funds
11:53which are categorized as hybrid mutual funds. Hybrid mutual funds as a whole which are a combination of
11:59generally fixed income as well as equity mutual funds as well as in certain cases multi-asset funds
12:05which are also hybrid funds which is a combination of fixed income, equity and gold.
12:10That category as a whole has received inflows of as much as 17,436 crore rupees
12:18and the assets under management in this whole bucket in hybrid mutual fund schemes
12:23has stood at 8.4 lakh crore rupees at the end of July. A bulk of this of course the inflows
12:30have come through in the form of arbitrage funds. We have requested or we have looked for
12:38some commentary on this and we will get you some details and some analysis of this.
12:45We are also of course waiting for the SIP number which has hit a fresh record high every month
12:52since get this July of last year and it stood at over 21,000 crore rupees in the month of June.
13:00We have to see whether that will continue to take place. Now overall if you were to sum this up
13:07it's a very strong set of numbers for the mutual fund industry and remember this is in a month
13:13where you have seen a substantial change in the tax treatment of mutual fund schemes
13:18as it has been with the asset classes. So equity mutual funds you have the tax treatment
13:25of long term capital gains at 12.5% versus the 10% earlier. Of course fixed income mutual fund schemes
13:31have not seen a change. International mutual fund schemes have seen a change
13:35and some hybrid mutual fund schemes have also seen a change in the taxation structure.
13:40Now overall like I said it's been a positive month. I am also quite enthused by the inflows
13:47into index funds and it's an inflow of as much as 8019 crore rupees in the month of July
13:56and it's an assets under management of 2.6 lakh crore in that month or rather at the end of that month.
14:06All told very strong numbers. We will get you some analysis when we manage to get in touch
14:11with Swaroop Mohanty. We have got him soon. We will soon get him on the phone line.
14:17In the meanwhile let's go across to Ashish Maheshwari and Kush Bhora both of whom have been waiting
14:24patiently while I have tried to give our viewers a taste of how the mutual fund industry
14:30has performed or the inflows that they have received in the month of July.
14:34It looks strong gentlemen but let's talk about the equity markets as they stand right now.
14:38We were talking about ABB India at the start. I am curious what you think about the performance Ashish
14:44and would you buy at this juncture? It has as Anushi pointed out at the start of the show
14:49valuations that are on the higher side.
14:52Yes, I agree at this price valuations are on higher side but traditionally also you see ABB
15:02always used to be quoting at very high valuation. So this is ABB, Siemens kind of stocks.
15:08They are high valuation stocks and again if I see this year performance expectation,
15:15they will do around 1600 crore kind of profit and their market cap is almost 1,40,000 crores.
15:23So the stock is not cheap but the only thing is as they have delivered continuously,
15:29number one. Second, if we see their shareholding pattern, even FIs are buying business stock
15:35in last one year from 9.5% equity. Now they are owning more than 12% plus stake in the company.
15:43So some buying from them. So retail float is just hardly 5% in ABB. So valuations are always going to be there.
15:51As far as performance is concerned, I think it was in line if you ask me.
15:56Though revenue was slightly short but profit numbers were in line what the street was expecting.
16:02And another thing which is positive for the company is excellent order book,
16:07almost 9,500 crore order book is there. But as stock has already moved quite a bit,
16:12if we see last three months already 15% of stock is up from the previous lows.
16:18So my suggestion will be to look at this stock at some more correction,
16:23maybe 7,500 rupees if somebody is looking for long term investment.
16:28So I just want to point out one more thing. I was looking a little more at the AMFI numbers
16:35and we have got significant inflows as I pointed out in equity mutual fund schemes
16:42and I pointed out that once again a large part of that is in the way of your sectoral and thematic mutual fund schemes
16:49which is once again seen inflows of close to 18,400 crore rupees.
16:56A large part of that is once again in the form of new fund offers.
17:01There are as many as three mutual fund schemes that opened in the month of July
17:06and the funds that were mobilized by these new fund offers stand at 13,735 crore rupees
17:13out of which 9,790 crore rupees have come through in the way of sectoral and thematic funds.
17:20Do we have Swaroop Mohanty? Okay, I am still waiting for Swaroop Mohanty to join in.
17:28In the meanwhile let's jump straight to our questions.
17:31And we have got Santakumar who has got the first question today.
17:35He is asking about a couple of stocks, Mazgon Dock Ship Builders as well as Paris Defense
17:41and he has got both of them at a decent profit is what he says
17:45or rather he is wondering whether to buy at the current price and he is looking to hold for a year
17:51and whether or not he can make 30% on this. Kush, bit of a tall ask for stocks that have done quite well.
17:59Hey, hi Alex. Indeed, but the silver lining if we can look at it that way is the fact that
18:05they have corrected quite a bit already at least in the last couple of months
18:09and some of them are coming to a level where they might just start to seem attractive
18:13at least from a trading perspective.
18:15So, a Mazgon Dock for sure falls in that category.
18:19In the last couple of sessions we have seen this stock form a base and move higher.
18:23So, I think this is getting ready for a next leg of a move.
18:26It may not be as sharp as what we have seen in the recent past
18:29but definitely attractive levels and a favorable risk reward ratio.
18:33So, if you do want to accumulate then 47.50 is your stop loss.
18:37On the higher side, you are looking at a 50-200 and then a 50-450 as the next levels to watch for.
18:44Paris Defense has been really made a very convincing base
18:47although it is respecting the last week and this week lows
18:50but I would give it some more time before we go out and get a conviction on this to buy a fresh.
18:56Gentlemen, we have to slip into a very quick break.
18:59We will be back on the other side to take more of your questions.
19:01Viewers, do stay tuned.
21:23Bye.
21:42Alright, welcome back.
21:43We are in the midst of taking of your questions.
21:46The next one is from Shalini and she's asking about CESC which she's bought at levels of 174
21:52and she's wondering whether to hold on based on the fundamentals. I'm not sure whether we've
21:57gotten the earnings yet but they are, if I'm not mistaken, out today. What's the view on this one,
22:03Ashish, on the fundamentals? Would you hold on? Yes, I'd like to remain interested in this talk.
22:10I think this particular sector is doing good and this group of stocks have also started now
22:18doing good. We have seen Sanjeev Govind's group of stocks now like PCVL etc also started taking
22:24part in rally. And if we see CESC also, last quarter the numbers were also quite decent,
22:30almost 30-40 crore pet was up from previous quarter and I'm expecting good set of numbers
22:37even this quarter because the power demand was quite robust in this quarter. So you can
22:43remain invested and hold for a target of Rs.200 in this stock which I think can come maybe next
22:50three to four months. All right. Balu from Bengaluru is asking the next question, is this
22:55the right time to buy Geo Financial Services? And this is a technical question. I will come
23:00to you on this one, Kush. At Rs.327 or thereabouts, would you buy?
23:06Alex, if I may just give a quick update on one other stock which is SGS Enterprises. And the
23:12reason I mentioned that is because this morning in the opening show, we did have a quick discussion
23:17around it where we discussed it for a target of Rs.120 at Rs.1070. Please continue to hold or at
23:23least book partially for whoever got it. And so sorry, Balu, just to give that slight digression,
23:29but I think it was a little relevant point to give viewers an update. Now, as far as Geo
23:34Financial Services goes, yes, we've got this one on our buy list for a very long time. And any dip
23:40that comes around, we do look at it as a buying opportunity. My only suggestion here will be that
23:46don't be in a hurry or rather don't look for quick returns. This might take some time. It's
23:51consolidating. Positional stop loss comes in at 10, but this is a good time to start accumulating.
23:56On the upside, we're very constructive. Rs.355 and Rs.370 are the targets that we're looking at.
24:02Okay. The next one is from Ravi. And Ravi is asking whether to hold or sell Radico right
24:10now. And he's writing in from Tanuku in Andhra Pradesh. Since it's not specified what the buy
24:16price is and the timeframe, I'll just come to you, Kush, on how this is looking in terms of
24:22the charts that you're looking at. What are the key levels to watch out for? And
24:26would you sell at this juncture? Very delicately placed. The entire space has actually seen quite
24:33a bit of traction, but this stock somehow hasn't really participated. So it doesn't give me that
24:37confidence. But yes, to your question that what are the levels, I think on the downside, we're
24:42looking at a 1650. And on the upside, we're looking at about 1730. Either of these two levels
24:49breaking will perhaps give a more clearer trend to play with. At the moment, that seems slightly
24:55on the negative side. So I might just avoid Radico Ketan at this juncture. All right. That's the
25:02view on Radico Ketan and avoid is the call from Kush. Hindustan Copper, and I'm not sure who this
25:09viewer is. Just a quick request, guys, if you can tell us what your name is, it'll be easier for us
25:14to identify who you are. But Hindustan Copper up and about in trade today, up as much as three and
25:20a half percent. Ashish, on the fundamentals, I did read that copper prices on the way up.
25:26Would you say that this is a good time to buy? Yes, Hindustan Copper, I think there's a good
25:34time to add in the portfolio. Even the last two quarters number, we see
25:39profit just became double from 63 to 124 crore was profit in the previous quarter. And I think
25:47the result is also on 12th of August of Hindustan Copper. So prior to results is a good time to
25:52accumulate this stock. Okay. BPCL, HPCL, would you suggest an entry into the oil marketing companies?
26:00Amit Murkutty is asking based on the fundamentals and what target would you give, Ashish, on these
26:06two counters? See, as now crude is offering below $80 and these companies have not cut the prices
26:15still. So this quarter also we are going to see bumper result from these companies. Only one
26:23problem is these companies, particularly oil marketing companies, they don't move on day-to-day
26:30basis. So you need to be slightly patient with these stocks, then surely money can be made. So
26:36maybe BPCL, you can buy 320 labels for a target of 400 rupees, which is my pick number one. Along
26:43with this, I also like Oil India Limited, which is better than HPCL. All right. Ishwar is asking
26:51this next question. PlastiBlends India and Advanced Enzymes, whether you have a view,
26:57I'm not sure. Kush, I would think that Advanced Enzymes is something that you would look at.
27:01Is this the right time that you should consider buying?
27:06No, not really. The stocks had a very sharp run, but we're starting to see these negative
27:10divergences pop up, which means there could be a round of profit looking or maybe some
27:16sort of consolidation going forward. 410, 415 are the zones where the stock has support.
27:22The good thing is that on the way down the volumes are quite thin, which means that there
27:26hasn't really been a lot of heavy selling. So around 410, 415 might be a good time to
27:32get into this stock. On the way up, you're again looking at 430 and 445 as a target,
27:37and your stop loss would be close to that 400 mark. All right. Let's run through a few more
27:43more very quickly. GMM Fowler is the next one. I'm coming back to you, Kush. Short-term view
27:48on this counter. We've got Chetan who's bought at levels of 1454. He's bought at elevated levels.
27:54Should he hold on? So Chetan, if you just want to give yourself a chance, my suggestion would be
28:001315 is a very strict top loss level that you should follow. If that's broken, please take
28:05credit. The stock's on the way down. Rocky's question, I'm guessing that this is Tata Motors.
28:15No, let me just pull up the chart. Hold on. This is Tata Teleservices, which he has bought at levels
28:22of 110. And he's got a significant quantity. He's bought 10,000 for a swing trade. And
28:30I don't know what the strategy would be. Kush, what would you suggest here?
28:36There's a rebound after a sharp up move. There's a sharp run of profit booking that followed,
28:40but the stock seems to have made a base around the 89-88 mark. The quantity is fairly decent.
28:45My suggestion would be to keep a strict stop loss around that 88-89 level. On the way up,
28:51don't wait for your target. Keep exiting at interim levels also, even if it means exiting
28:56at a slight loss. So 102, and then about 105, and then eventually 110 are the levels to exit at.
29:04But keep a strict stop loss at 88. All right. Unfortunately, we are out of time
29:09on this edition of Ask Profit. Thank you so much, gentlemen, for taking the time.
29:13Ashish, as well as Kush, thank you so much for joining us on Ask Profit. We had a bit of a
29:18disrupted show on account of the AMFI numbers, but we still managed to take some of your questions.
29:22Do stay tuned. Lots more coming up over the course of the day. And this is NDTV Profit.
29:48Take care.
31:48Hello and welcome. This is Hot Money. I am Agam Vakil. And in this show,
31:51we take you through all the stocks which are the flavor of the season, specifically
31:56the day as well. But before that, a quick look at how things are faring as far as
32:00the markets are concerned. The benchmark is currently trending higher. The Nifty is trending
32:06well above the mark of 24,000, which is a crucial one. We are also seeing an advance of around 1%
32:12in today's trade. The Bank Nifty also moving largely in tandem with the Nifty 50. That's
32:19also up by nearly 1%. The broader markets are, well, again, moving in the same pace,
32:26if not outperforming, but about a 0.9% advance for the mid-cap index. The small-cap index is up by
32:34just as much. So all in all, all the key indices are moving with some sort of gains with the real
32:43estate sector standing out along with IT and auto. Well, it's a day where you have secular gains. And
32:51let's pull up the advance-decline ratio as well, because that'll give you a better idea about how
32:55things are faring at the moment. And well, there you have it. You have about three gainers for,
33:00well, about one loser. And this is a very rough, rough estimate. This is as far as the NSE is
33:05concerned. And, you know, in the broader markets too, well, naturally, you will have reactions to
33:12earnings. But among the key, you know, gainers, perhaps we can talk about something like in oil
33:17India. It's been a mixed quarter, to be honest, for oil India. But we are seeing a gain of around
33:236% for this particular company. We're seeing strength return to Oracle Financial Services.
33:29It was a strong quarter, but there were concerns about its valuations, which is why it saw a little
33:34bit of a beat down after its earnings. And it does seem like it's recovering. Well, we have
33:39Macrotech developers up 4%, CG Power up 4%, and Sona BLW is up also as much as 3.7%. In terms of
33:50losers, well, we do have weakness in RVNL, which is down around 4%. Apollo Tires and HPCL also
33:59down and out, not by as much, not by substantially, but we have a decline around 3, 3.5% there.
34:05So that's as far as your broader markets are concerned. With that, let's also take a look
34:10at all the stocks that we are going to address in the show today. Pardon me. Well, we're going to
34:16take up Ayesha Motors to see how the earnings have panned out. Ola Electric, of course, that's the
34:22IPO which has, well, finally listed on the Indian bourses. Cochin Shipyard is the other one. Strong,
34:29strong earnings coming through. And LIC as well on the back of earnings along with ABB and Biocon
34:35as well. And to take us through all these stocks, well, we have Gaurang Shah with us of GOG
34:41Financial Services. Gaurang, good afternoon. Thank you so much for joining in. As usual,
34:46before I come to you, Gaurang, let me introduce the first topic, and that's Ayesha Motors.
34:51And for that, we have Puneet with us who can perhaps tell us about how the quarter's been,
34:55Puneet. Yeah, thanks for that. So, you know, the Outlook and the Bloomberg estimates were roughly
35:00around 10 to 15% growth, but the numbers have come in much stronger for Ayesha Motors in this
35:05particular quarter. So, you know, about 1000 crores of PAT was expected. They've come in at
35:09roughly 1100 and 108 crores. That's one of the most positives. And what's interesting is, you
35:13know, what brokers are also saying in this particular manner as well. So while some of
35:17them like Citi have maintained a buy call on the stock with the target price of roughly 5250,
35:22implying upside roughly 10 odd percent from current levels, but most have, you know, maintained,
35:27you know, that the valuation concerns at this particular point of time is slightly
35:31a key issue. They, you know, Citi has said that, you know, they've cut like bike volume estimates
35:36for the company by roughly 4 to 6% over this particular year of FY25. That's also, you know,
35:43led them to reduce the target price by 50 rupees per share. But other brokerages such as MK,
35:48as well as, you know, Motilal Oswal, they have maintained their sell rating, both,
35:52you know, target price of roughly 3700 to 3900 odd. And both have also, you know, seen some
35:59volume pressure in this because do note that Ayesha Motors in this particular quarter,
36:03they are changing their model on how they are addressing the market. So they are going into
36:07an auto replacement model rather than a sales forecast, which essentially means that depending
36:11on the inventory, they will, you know, kind of just like replenish or add more inventory into
36:16that. So that has led to brokerages reduce, you know, some volume estimates that also impacted
36:22the numbers for this particular year, but overall positive surprise for Ayesha Motors in this
36:26particular quarter. Okay. Well, Gaurang, welcome to the show. And if you can also come in on your
36:32assessment of Ayesha Motors, we have seen a lot of competitive intensity too, and which is why
36:39over the last few years, we have seen a little bit of temperance in its price to earnings.
36:43What is the way forward here? Thank you, Agam, for having me on this show and
36:50afternoon to all of you also. So you remember, Agam, not too long ago,
36:55we had a very stiff competition in this category of 350, 400 plus CC. We had new launches,
37:02two new launches. One was from Hero Harley 440 and 440X and simultaneously from Bajaj Tramp in
37:11terms of 400 CC motorcycles. I remember during that time, the stock of Ayesha Motors trading
37:19at 3,300 and then the announcement was, it was almost simultaneously these two new launches
37:25and the stock of Ayesha Motors corrected to about 3,000, 3,100. We maintained a positive
37:31stance over there and we maintain a positive stance now. Let me give a
37:34disclosure, prudent on my part, that we have coverage on Ayesha Motors.
37:38And the best part, Agam, is that not only the demand from big cities, tier one, tier two cities
37:44is sustainable, but the most turnaround thing that has happened for this particular company is the
37:50demand from semi-urban and rural wherein folks who were there used to ask for entry-level and
37:56mid-size motorcycles. Over the last three years, that preference has now shifted upwards to 350
38:02plus. And in that category, I think because of the brand royalty RE, that is...