- #Nifty, #Sensex off lows as #BajajFinance, #Wipro rise
- HG Infra Engineering gets two big orders in a week
Get all your stock-related queries answered by our technical and fundamental guests with Alex Mathew on 'Ask Profit'. #NDTVProfitLive
- HG Infra Engineering gets two big orders in a week
Get all your stock-related queries answered by our technical and fundamental guests with Alex Mathew on 'Ask Profit'. #NDTVProfitLive
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00:58Good morning and welcome.
00:59This is NDTV Profit.
01:00My name is Alex Mathew
01:01and you're watching All You Need...
01:03Apologies, you're watching Ask Profit.
01:05I was recalling my first show of the day.
01:07This show gets you answers
01:08to all of your stock-related questions,
01:10whether they're fundamental or technical in nature.
01:12And if you've got questions for us,
01:14you can send them to us
01:15on that number that you see on your screen right now.
01:18Let's take you through where the markets are right now.
01:20And it's very narrow range once again for the Nifty 50.
01:24But we were more or less looking at a similar scenario
01:28in trade yesterday at this time.
01:30And we all know what happened
01:31towards the end of the session.
01:33What a romping rally you saw for the Nifty 50
01:36ending at a fresh all-time high.
01:38Currently, you're seeing cuts
01:39of about a tenth of a percent or thereabouts.
01:41Not too much to speak of.
01:42The real action seems to be
01:44in the broader end of the market
01:45where you're seeing gains for both the mid-cap
01:48as well as the small-cap index.
01:49The mid-cap index up as much as 0.7% or 8%.
01:53And you have the small-cap index that's up about 0.9%.
01:57The market breadth tilted in favor of the advances
01:59and quite strong, the market breadth.
02:03As many as 1,600 advances at this juncture
02:07on the broader markets.
02:09Let's take a look at the sectoral indices
02:12and most of them are in the green.
02:14But once again, you're seeing an underperformance
02:16by a few names that are familiar at this point.
02:19The Nifty Bank is once again underperforming.
02:21It's more or less flat at this juncture.
02:23Even the financial name is not doing too much.
02:25The stocks that are moving are the Realty Pack
02:27up as much as 1.8% or thereabouts.
02:30The metal count is also doing quite well
02:33up as much as 1% or thereabouts.
02:35FMCG is underperforming.
02:37Incidentally, do check if you've got an allocation
02:40to the Bajaj Housing IPO.
02:43That information is out today
02:46and that's a listing to watch out for.
02:48Everybody is looking forward to it
02:50based on the kind of oversubscription
02:52that you saw in trade.
02:53But there's one stock that we're focusing in on at the start
02:56and this is a counter that is buzzing, HG Infra.
03:00It's up quite considerably.
03:02It's up as much as 4.4%, very close to the high point of the day.
03:05It's a significant order win for the company,
03:08over 700 crore rupees for a company
03:10that has a market capitalization
03:12of about 10,000 crore rupees.
03:14We've got Mihika joining in to tell you about those two orders
03:17and what it means for the company as a whole.
03:19Mihika, what can you tell us about the latest?
03:21HG Infra is buzzing.
03:23It reached an intraday high of 5.1% actually
03:25and the stock is up over 6% in the last five days itself.
03:28Now, the company has received two order wins
03:31in the last three days worth a total of 1,400 crores.
03:35Now, the order it got yesterday on September 12th,
03:38it was a letter of award from the Central Railway
03:40and the contract value is at 716.11 crore.
03:44Now, the company is going to construct a new BG line
03:47between the Dhule to Nardana section
03:49and the construction period is set at 30 months.
03:52And the second order it got on September 9th
03:54was from the Ministry of Road, Transport and Highways.
03:57Now, the order value was at 781.11 crores
04:01and it was for the upgradation of an existing six-lane road of NH 47
04:07and they are going to upgrade the road
04:08of a total length of 10.63 kilometer.
04:11The construction period for this order is at 2.5 years.
04:14Got it. All right.
04:15Thanks so much, Mihika, for getting us those details.
04:17Let's check in with our experts
04:19and see what they have to say about HG Infra.
04:21Not a very large counter,
04:22but still sizable at 10,000 crore rupees of market capitalization.
04:26We have got Vineet Bolingkar
04:27who is the Head of Research at Ventura Securities
04:29and Rajat Bose, SEBI registered research analyst joining in.
04:32Thank you so much, gentlemen, for taking the time
04:34and happy Friday to you.
04:36I'll come to you first, Vineet.
04:37On HG Infra, do you have a view?
04:39If so, what is it?
04:43So, you know, we are very constructive on this company
04:45and expect that, you know, their order book will grow handsomely
04:49and the testament is out in this order
04:51where they generated about 700 crores of orders from the railways.
04:55You know, we were actually building in about 100 to 120,
04:591000 to 1200 crores of order wins every year
05:03for the next couple of years.
05:05And the fact that, you know,
05:06they have got some very handsome orders
05:09indicates to us that, you know, the order book will get accelerated.
05:13And because of this, we are very confident
05:17that the company will do 15% to 16% top-line growth
05:21with an equally mirrored bottom-line growth.
05:24The reason being that, you know,
05:26they have a very EPC and asset line in a ham business model.
05:30And, you know, because of...
05:32And we see that their margins, which are around 16%,
05:36can maybe shave off 30-40 bids.
05:39But overall, a very constructive story.
05:42We are seeing an EPS of Rs. 115 in FY27.
05:47And that gives you, you know,
05:50adjusted PEF around 13 times going forward.
05:53So, I think a very good company to look at.
05:57And, you know, we should see more infra getting accelerated
06:02as, you know, the Modi government 3.0 gets its act together.
06:07Yeah, and that's despite a gain of about 85% in 2024 so far.
06:13It's still a buy based on the fundamentals,
06:15based on what Vineet is speaking about.
06:17Let's jump into the questions.
06:19And by the way, if you're tuning in for the first time,
06:21I'd like to tell you to tell us what your name is
06:23as well as where you're tuning in from.
06:25It'll help you when I read out your question.
06:27We'll take the first question on Atara Power.
06:30And this is a question from Kabilan, who's writing in from Chennai.
06:34He's bought 1000 shares and I do not know what the buy price is.
06:40But since he's not mentioned a time frame,
06:43he's asking whether a hold or exit,
06:45I would assume that he's in the green.
06:47Rajat, what's the view on the charts?
06:50I'd say currently it's a hold because it is in a range bound situation.
06:54The upper boundary is somewhere around 460 or so.
06:58And the lower boundary, as I can see, is about 400.
07:02And currently it is 444.
07:04I would say put a stop loss below 430 and continue.
07:09But if it fails to take out 460 decisively, then exit.
07:13Just a quick view, Vineet, on Atara Power.
07:17We were talking about the new EV policy by the government.
07:21And there is also a mention of charging infrastructure.
07:24And we were wondering how this would benefit the companies out there.
07:27And Atara Power as a utility and a provider of electricity
07:30that is also getting into partnerships with the OMCs
07:33to create charging infrastructure,
07:35we were thinking would be one of the beneficiaries.
07:37But I guess it would be a pittance compared to everything else that they're doing.
07:41Would you suggest a hold on fundamentals and buy on dips?
07:46I would even recommend you to buy into the stock at current levels.
07:51I have a more macro reason for that is that if you look at data centers
07:56which are now being planned of 1 gigawatt capacities,
08:00would mean tremendous sourcing of green power.
08:06And Tata has its own infrastructure for manufacturing solar cells
08:14and modules.
08:16They're doing rooftop solar.
08:18They have coal mines.
08:23So it's a very integrated power company.
08:27It has got T&D projects also.
08:29And I believe that you're getting everything packaged together.
08:33And you also have plays on EV charging, etc.
08:37Also with rooftop solar coming in.
08:42So I think this stock is not going to come down too much.
08:46And even buying at current levels is warranted.
08:49Okay, fair point.
08:50NBCC is the next account that we're talking about.
08:52Ravi Shankar from Kumbakonam is writing in asking about it.
08:56He's bought at levels of 179.
08:58He's got as many as 200 shares.
09:00He's making a small profit.
09:02The stock is currently trading very close to the buy price.
09:06On the technicals, Rajat, how does it look?
09:08What are the prospects?
09:11If you look at the longer-term chart, medium-term chart,
09:15I would say that it is clearly on an uptrend.
09:17But in the short-term, it is actually see-sawing.
09:21Very recently, it fell from its all-time high of around 208,
09:27came down to something like 170.
09:30At the moment, it is 179.
09:32So one should put a stop-loss below 170 and continue to hold on.
09:37If it fails to take out 200 marks, then seek a next.
09:42Chandra has got the next question asking about KEC.
09:46Bought 100 shares at a price of 1025.
09:53Should they wait or sell?
09:55They're undergoing a bit of a loss, Vinit,
09:57on the fundamentals view on KEC.
09:59Would you hold?
10:01Definitely, I would hold.
10:03I would look to buy also on declines or even average my position,
10:08given the fact that we are very constructive
10:10on the order bookings of the company.
10:12The company is not only looking at orders from the T&D space,
10:17but they're also diversifying into civil projects, railways,
10:21water projects, and even roads.
10:24So we are seeing that the margin uptake should take place.
10:30Order bookings are very good.
10:32We have a buy recommendation on the stock.
10:35So that's the story.
10:37All right.
10:38Another stock.
10:39And there are so many of them that have done incredibly well
10:42over the last year or so.
10:44I'm looking at Inox Wind.
10:46And I see, OK, so it's listed 13th of September.
10:51Rajat, do you have enough data on this to give us a view?
10:54Because we've got a question coming in from Sushila.
10:58I was writing from Bellary.
10:59She's bought at levels of 158.
11:01The stock is currently trading at 250.
11:04400% gain since listing.
11:07Would you hold on to this?
11:11What would you like to hear?
11:13No, I would like to hear your view, Rajat.
11:16In my view, one should book profits.
11:18Actually, this has been a radical run.
11:22And even in the recent past, the move has been pretty good.
11:28So at least book profits.
11:29You're getting a bounty.
11:33All right.
11:34So that's a view on a stock that is a multi-bagger,
11:37to say the very least.
11:39ICICI Bank is the next counter that we're talking about.
11:42Matthew has got the question.
11:43And he's looking for a relatively short time frame.
11:46But I would still go to Vineet on the fundamentals.
11:49He's bought 300 shares of ICICI Bank at 1,247,
11:54which is the current market price right now.
11:57Vineet, there are some that would say that this is the most expensive
12:00amongst the large private sector banks.
12:02And they would be right, based on the kind of run
12:05that you've seen in the recent past.
12:07And amidst a large underperformance of the banking space as a whole,
12:13would you still suggest that you hold on to this,
12:15add more to ICICI Bank,
12:17or are there other better opportunities in the private banking space?
12:21So I'd like to qualify my opinion.
12:25My opinion is to be underweight on private banking stocks.
12:31Because we think that the bull run is past its prime out here
12:35and little bit of profit booking is warranted.
12:37Having said that, ICICI Bank is one of the best players out here.
12:41And so if at all you want to have an exposure to private banks,
12:44ICICI Bank is the one to go.
12:46Okay.
12:47I will still go to you, Rajat, on the charts.
12:50Is there anything interesting that you're seeing in the charts for ICICI Bank?
12:57You can do either of the two things.
13:00That is, you use your 20-day exponential moving average
13:04or you use the Fibonacci level of 1179.
13:08The 20-day moving average is around 1172.
13:11So I would say put a stop-loss below 1170 and continue.
13:16This stock, even though it has appreciated quite a bit,
13:20its run is not that vertical even on a five-year chart.
13:25So probably you might see some amount of upside is still left in this.
13:31So that's why I'm saying hold on to it with a stop below 1170.
13:36Okay.
13:37Hold is a view on ICICI Bank based on the technicals,
13:40but it's an avoid from the perspective of Vineet.
13:43Venkat has got the next question.
13:45Simplex Castings.
13:47He's bought a thousand shares at a price of 53
13:50and the stock is currently trading at 286.
13:53So he's making a considerable profit on this
13:56and he's still got a long-term view.
13:58Vineet, view on Simplex Castings.
14:00It's not a very large company,
14:02so I won't fault you for not having tracked a 200-crore-odd market capitalization.
14:07Any view on this?
14:09I think it should continue to hold
14:11because they are into the infraspace.
14:14Infra has got strong legs.
14:16Government focuses on Infra.
14:18And they will do really well.
14:21So I think one should continue to hold.
14:23Okay.
14:24Simplex Castings.
14:25I do want to also take, Rajat, a view on the technicals.
14:28Anything that you see that stands out to you?
14:31Another instance of a sharp run-up from the buy price.
14:34So some money off the table?
14:37Yes, some money off the table is better done
14:40because it is not so liquid.
14:42Because if you look at the trading right from April to, say, August,
14:48the trading was very keen.
14:50So I would suggest looking at part profits.
14:53And what is it doing is that it goes to the day's low,
14:58then shoots up, and this has happened within the last 15 trading days at least four times.
15:05So this looks like an operator-driven stock.
15:08And I would say that at least some money off the table is definitely warranted.
15:16All right.
15:18Not liking the look of the charts there for Rajat.
15:21Let's talk about the next counter, which is Cochin Shipyard,
15:25another multi-bagger and a stock that has gained quite tremendously.
15:29Of course, it has had a bit of a torrid run having hit higher levels.
15:33But we've still got Rajesh, who's riding from Bengaluru,
15:37who's bought at levels of 1700.
15:39He's in the green right now.
15:40Vinit on the fundamentals, he's got a long-term view,
15:43and he's seeking a long-term view on this particular counter.
15:46How does it look?
15:49Valuations are very demanding.
15:51And better exposures would be Zen Technologies,
15:56Hemachal Futuristic, which is seeing the onset of defense capabilities coming.
16:00So these are some of the two counters that I would like to recommend
16:03in place of Cochin Shipyard.
16:05Okay. All right.
16:07Lotus Chocolate, I must confess, it's not a very large counter.
16:142000 crore market capitalization, currently trading at 1536.9 or thereabouts.
16:21And Gaurav from Mumbai is simply looking for a view on this one.
16:25Rajat, anything that you'd like to tell us about the charts that you see
16:30Do you see anything?
16:31In fact, it's down about 4% in trade today itself.
16:34If you don't like it, would you give us another option for my friend Gaurav
16:40to invest in?
16:44Well, what I would say is that this is on the run up to, say, 2600.
16:51It showed, I think, something like 25 circuits in a row.
16:58So this is an operator-driven counter, no doubt about it.
17:02So getting into this, you may not get an exit.
17:06So avoid this.
17:09If you have to buy something at the moment, if you are dying to buy,
17:15what I would say that look for some safe counters.
17:20A little earlier, I think we discussed ICICI Bank or some other counter,
17:25anything that is fairly liquid.
17:29Say, any of the chemical stocks or pharmaceutical stocks,
17:36they are doing pretty well.
17:39One stock, if one is willing to hold for some time and looking for a good upside,
17:45is alkylamine.
17:47But the caveat has it that I personally hold some shares of alkylamine
17:52in my portfolio.
17:53That's a disclosure from myself.
17:55And the disclosure should be made because I wish you a happy Friday 13th,
18:01both to the investor as well as both of you there.
18:05Yeah, thanks so much for the kind wishes.
18:08Just want to clarify, what is the time frame that you're looking at, Rajat,
18:12on your trade?
18:13And thanks so much for that clarification, important one to make.
18:17I would say that my average cost of acquisition of alkylamine
18:24might be 9 rupees, 45.
18:28And then there has been, I think, bonus or something, whatever.
18:33I have been holding it for more than two decades.
18:36So I would like to retire this.
18:42Okay.
18:43All right.
18:44And maybe once you do, you should continue to speak to us on an ongoing basis
18:50and give us some more ideas to hold for two decades, Vineet, you as well.
18:54IEX is the counter that I'd like to ask you about, Vineet, next.
18:58And we've got Karna, who's bought at prices of 177 or thereabouts.
19:03The stock is currently trading above that, 218, making a decent profit.
19:07The stock has done reasonably well, up as much as 30%,
19:11despite the concerns that some people have raised about pricing
19:14and the future going forward on regulatory issues that have cropped up
19:18over the last year or so.
19:20On the fundamentals, though, would you continue to hold, Vineet?
19:23Absolutely.
19:25If you go to the IEX and you watch the rate fluctuations,
19:29in the day it is as low as 55, I'd say,
19:32and during the night it goes up to as high as 8 bucks.
19:36So there is clear disparity between generation and your transmission networks.
19:44Also, we are lacking capacities for base load.
19:49So until these things correct, I think IEX will be playing out very well.
19:54And I think they've got a very good runway ahead for them
19:58over the next two to three years.
20:00Practically a monopoly still.
20:02And the challenge of which is what some people had suggested
20:06would be problematic, but it's still a counter that has gained
20:09over 60% over the last one year.
20:12Devender has got the next question, talking about IRCTC.
20:15He's bought at levels of 952.
20:18He's got 32 shares.
20:20It's very close to the market price right now.
20:23It's not too far away.
20:25Is it likely to face more pressure on the downside?
20:30Would you hold on to this, Rajat?
20:33He's not specified his time frame, so perhaps you can give us your view
20:37based on the longer term charts as well as what you're seeing in the near term.
20:41IRCTC on weekly chart, if you remember in 2021, this was a parabolic.
20:51In fact, when I teach people, I show IRCTC as what happens after a parabolic.
20:58Even IEX was like that.
21:01But both IRCTC as well as IEX are now showing a saucer pattern.
21:06In that saucer pattern, more or less IRCTC has completed the saucer.
21:11And after that, there is a cup and handle formation also.
21:14Now, if it were to fall below 900, then one should exit.
21:18Otherwise, IRCTC may continue to be held because it's this time
21:25when lots of defense and other counters that have shown parabolics,
21:30including your Zomato, those stocks, when they suffer,
21:36these kinds of stocks which have already gone through that painful periods
21:40may go sideways or would even go up.
21:44So IRCTC, I would say, is a hold with a stock below 900 on closing price basis.
21:52Vinit, this one is directed specifically at you and we've got Jitendra Dave
21:58who says that he's a small investor.
22:00He has highlighted a few stocks and I'm going to read them out to you.
22:05Strides Pharma, Finolex Industries, Wellspun Living, Canbank, Hint Copper, Spark.
22:15I don't know if there's any research that has gone into the selection of this list.
22:20Does anything stand out to you?
22:22And what is the strategy that a small investor like Jitendra should employ
22:27in the current market?
22:29So I think I will go with the elimination first.
22:32I'll tell him that Spark is not the stock to be invested in.
22:40They are more into drug discovery and it will be a while before they get anything going.
22:46So if we omit them, we are left with four other counters.
22:51Within that, Hint Copper has a lot of promise.
22:55India is a copper deficit country and you can buy into that.
23:00Strides Pharma is also a very good company.
23:03Pharma Space is really doing well and we think Strides will also do well in that.
23:09I think the fourth company was...
23:12Can you just update me on that?
23:15I'm just trying to pull it up.
23:18It was Wellspun Living.
23:20Wellspun Living, we are very constructive and positive.
23:24We believe that good times are ahead of the company over the next couple of years.
23:31So out of all these four or five stocks, if you ask me which are the top two plays,
23:36Wellspun Living and Hindustan Copper stand out clearly.
23:40I must point out, there are a few questions that have come through that I've chosen to ignore
23:44because it's hard for me to ask my experts to give you a view on penny stocks.
23:49We generally don't take them.
23:51It's very hard to look at the fundamentals and even the technicals are probably not going to make any sense to you.
23:57CDSL is the next counter.
23:59Darshan wants to know about this.
24:01He's bought at a level of, let's pull up the chart, at 1460.
24:06So he is seeing a loss, a small loss at this juncture.
24:09He's wondering what the prospects are.
24:12He can hold, he says, till August 2025.
24:16Would you hold, Rajat, based on that time frame, less than a year?
24:24One year is too small a period for a stock that has appreciated over the last five years nearly eight times or nine times
24:34because when the fall happens, it can even test the 200-week moving average, which is close to about 700.
24:41So if it is only one year, I would say make 1000 as your stop loss and continue to hold on.
24:49Otherwise, what I would suggest is that this is a platform company and doing pretty well.
24:55They taunt on lots of new investors coming in through Bajaj, home finance thing and all that.
25:02So one can continue to hold on for a longer period, not just one year.
25:07Maybe say five years or so, then you can get substantial appreciation out here as well.
25:13Okay. SIRMA is the next counter we're taking.
25:17And one of the last counters that we're talking about, SIRMA SGS Technology.
25:21The stock is currently trading higher by about 2% or thereabouts, with a market capitalization of 8,400.
25:28Anil John from Kollam in Kerala is asking about this.
25:31He's bought at a level of 586, which is slightly elevated.
25:34On the fundamentals, Vinit, would you hold on?
25:37Yeah, you know what, they're in the EMS space.
25:41And although we were a little disappointed with their performance,
25:44but they're doing some rejuggling of their business model, adding new people.
25:49And we're seeing EMS coming to its own.
25:52So I would give it the benefit of doubt and continue to hold on to the stock.
25:56Very quick view on HUL because I've promised it.
25:59Rajat, on the charts, the buy price is 2400.
26:03Sameer from Kolkata is looking for a target and a stop loss that you would put on this.
26:07I would say that Hindustan Lever is best bought at current levels for longer term.
26:17If you have already purchased, then put a stop loss below the 9-week moving average,
26:26which is around 2770, and continue to hold on.
26:29On the upside, if it crosses 3000, then 31 to about 3135 would be the target for you.
26:37Thank you so much for that view.
26:39Well, gentlemen, that brings us to the end of this particular edition of Ask Profit.
26:43Thank you so much for joining us, for answering all the questions that you did.
26:47Absolute pleasure having you on the show.
26:49And happy Friday the 13th to you and everybody tuning in.
26:53That brings us to the end of this edition of Ask Profit.
26:56Do stay tuned, lots more coming up on NDTV Profit.