- #Nifty, #Sensex hit record highs as #HDFCBank, #ICICIBank lead gains
- #Accenture to delay staff promotions: Reports
Get all your stock-related queries answered by our technical and fundamental guests with Mihika Barve on 'Ask Profit'. #NDTVProfitLive
- #Accenture to delay staff promotions: Reports
Get all your stock-related queries answered by our technical and fundamental guests with Mihika Barve on 'Ask Profit'. #NDTVProfitLive
Category
🗞
NewsTranscript
00:30Hello and welcome back to NDTV Profit, I am Meeka Barve and you are watching Ask Profit
00:55a show where we get all your stock related queries answered from a fundamental as well
00:59as technical guess. Now if you have any queries do send us your queries on the numbers that
01:04are flashing on your screen below. But let's just take a quick look at how markets are
01:07faring right now, well we do have the Nifty 50 which is in the green up about 0.16% in
01:14trade right now. When you talk about the counters that are doing well on the benchmark, well
01:18we have Sriram Finance which is the top gainer today, it's up over 3% in trade today as well
01:23as some strength coming in Bajaj, FinServ and HDFC Bank. The counters that aren't doing
01:28so well, well it is the ITPAC, we have Tech Mahindra, TCS, Wipro and Infosys all under
01:35pressure and we will be addressing this in just a minute. When you talk about the broader
01:38markets, well the benchmarks are outperforming the broader markets, the Nifty Midcap is
01:43actually the top underperformer today, it's down about 0.4% you know the counters that
01:48are leading to this negative performance, we have again the IT counters, Emphasis, Oracle
01:55Finance down about 5% in trade today, Persistent Systems and L&T also seen cuts of around 3-4%.
02:02When you talk about you know some of the counters that are gaining on the Nifty Midcap 50, we
02:06have BSC which is the top gainer on the index right now, it's up over 8% in trade today
02:10as well as some strength in some quick service counters like Devyani International is up
02:164.5% right now. But you know let's look at the sectoral indices, while we do have Nifty
02:21Finance and the Nifty Banking sectors that are the top gainers today, the Nifty Finance
02:26index up about 1.3%, the top loser is the Nifty IT and the index has seen a cut over
02:333% in trade today with all constituents in the red right now, when you talk about the
02:38top loser it's Emphasis and Persistent Systems seen cuts of 4-5% and we have Rucha joining
02:43us to give us more of an outlook on why the IT sector is under pressure today.
02:48Right, so Nifty IT is falling in trade today and this is largely on the back of one news
02:54that came out in Accenture wherein Accenture is set to delay its staff promotion from June
03:00to December. Now, this is the information according to Bloomberg and Bloomberg reports
03:04that Accenture had told its employees in an internal email that they are also considering
03:09to permanently shift the promotion cycle from June to December. Now, I will tell you why
03:14will this be happening. Now, clients generally set their budget in December for the coming
03:19up calendar year. So, if the December cycle comes into the picture with respect to employee
03:24promotion, the company gets better clarity with respect to how clients are looking on
03:29to their budgets and then the company can decide on to their expenditure like employees,
03:34ESOP costs etc. So, this might be the reason why Accenture is considering to get a better
03:38clarity on demand. Now, talking about IT as a whole, well, Citi had come out with a note
03:43on Accenture per se, the global team, when it did mention that surveys point to relative
03:47demand stability. Now, mind you that over the last couple of quarters, demand was into
03:51pressure because of different macro uncertainties like war, interest rate etc. But now, the
03:56surveys conducted by Citi indicates that there is relative demand stability if not a dip
04:02in demand. Also, clients are however, cautiously optimistic towards CY25 budget which means
04:08that CY25 that is calendar year 25 will likely be better than calendar year 24. But different
04:13events like the federal meeting which we have and the election cycle which is coming up
04:18this year could also affect client's budget and hence the budget could also affect how
04:24much they spend on IT and hence reflect in the revenue for IT companies. Now, pressure
04:30also continues to be on smaller discretionary deals. Now, discretionary happens when you
04:35know clients have to cut out on their budget to accommodate different expenditure as well.
04:39So, pressure on smaller deals although continues and budget reprioritization is also happening
04:45by clients. But comparatively, like if we stand right now and if we compare IT's outlook
04:52back four quarters back, we can see that there is relatively better green shoots which even
04:57different companies had mentioned in the first quarter earnings.
05:01Thank you Rucha for giving us that outlook. We are now joined by our guest for today and
05:04that is Vaishali Pare, who is the Vice President of Technical Research at Prabhudas Leeladhar
05:09as well as Rajesh Agrawal who is the HR at AEM Capital. Welcome to the show. Rajesh,
05:14I will first come to you. IT under pressure, what are your views? Which counters do still
05:20have strength investors want to buy in today? Good morning, Myka. Good morning, Vaishali.
05:28IT is under pressure today because people are waiting for some outcome of the spread which
05:34is due to come on 18th and not to forget that what Asset and Target postponed their
05:41promotions and all that's giving a somewhat bleak picture about the IT industry as a whole.
05:46And in domestic markets, we must not forget that in the last one week or so,
05:52IT stocks have given good returns. So, some profit booking is creeping up. Otherwise,
05:56we are not that negative on IT as a whole if somebody is willing to invest for a medium-term
06:02horizon. By medium-term, I mean at least 6 to 9 months because the numbers have been pretty good
06:09in the past quarter. Balance sheets are strong. Order inflows are better than expected,
06:15particularly companies which are in gen AI cloud and all are doing well. And not to forget that
06:21once the rate cut cycle is initiated, we believe that those companies which have good exposure to
06:28US and Europe markets will start getting good new orders from discretionary spending, especially
06:34from the BFSI segment. Hence, we believe that this fall is a kind of opportunity for long-term
06:40investors to accumulate. Whereas we would recommend in the large cap, we would recommend Infosys or
06:46TCS. In the mid-cap, we would go with Persistent Systems, LTI MindTree or Intellect Design.
07:16How do the charts of IRCON International look to you?
07:19Very good morning, Radhesh and Marita. Yes, IRCON, we were tracking it just yesterday and I think
07:25the stock has corrected quite a bit and it has come into the oversold zone. So,
07:31I think we have all the scope of this stock. So, now I would say 220 would act as a support
07:37and we may see a bounce back. But if 220 level is great, then the stock is really showing weakness.
07:43Thank you, Vaishali, for giving us your insight. The next query we have is on Tata Steel.
07:51Now, Narayan K. from Chennai is currently holding shares of Tata Steel at a price of
07:56Rs. 148.68 apiece and he is asking for the near-term outlook. He is asking if the upward
08:01momentum is expected in the near future. Radhesh, I will come up to you. I know the steel sector,
08:07especially prices have been under pressure. What is your outlook for the near-term future
08:11for Tata Steel? See, for near-term future, it is very difficult to say because in metal pack,
08:17a lot depends on what China tends to do. And with some positive signals coming from Chinese economy
08:24that they are going to go for some monetary easing, I think metal stocks are going to gain.
08:30But if you look at our domestic side, the best part for steel sector is the iron ore prices
08:37quoting below 90 odd dollars. And that's a very big positive for the entire steel industry as
08:41such because they are one of the major raw material is iron ore. And secondly, when we
08:47look at the kind of infrastructure development and the focus of government on real estate,
08:51key picks and all these things, I think steel demand is going to go up.
08:54So with demand moving up, I think these companies are going to do well, not only Tata Steel,
08:58but others in this pack. One has to keep a medium to long-term view for having some meaningful gain.
09:04For short term, I think 160 would be a decent target in the next 15 to 20 days.
09:34So, I would say actually, yes, the long-term chart is also positive. And even if I'm seeing
09:41the daily chart, it is in an uptrend, but right now it is consolidating. So, I would say continue
09:46holding because once it moves past 1420 levels decisively, this could be going towards perhaps
09:53even 1600 levels. So, my view is positive and the near-term support for this stock lies at 1250.
10:00So, that is how one can take the strategy, can add more or continue holding with the trading
10:06stop-loss to look for a target of 1600. Thank you so much, Vaishali, for giving us
10:11that view. The next query is from Shreyas from Bangalore. Now, he is holding all cargo logistic
10:16shares at a price of 71.50 and he bought this for a swing trading session. He is asking if he should
10:23hold or exit. Vaishali, I'll come to you again. How does all cargo logistics look on the chart?
10:30So, there is really actually nothing much happening. But when I'm looking at the daily
10:35chart, it's just in the process of making the higher bottom. So, if the stock is showing clarity
10:41of bottoming out at 66 levels and showing a swing upward towards 72, 73, I guess it's a positive
10:49view. And the actual momentum would begin only about 75 levels because that is what will make
10:55it go into a trend and then perhaps go towards 85 to 90 levels. So, 66, 65 should act as a support
11:02and above 74, there will be a clarity for an upward trend to begin.
11:06Got it. More clarity about the 74 level. The next query is from Manvesh from Andhra Pradesh
11:11and he is requesting a suggestion of whether he could enter Bajaj housing finance at this
11:17level or should he wait. And he is suggesting for good value to entry to it. Rajesh, I'll come to
11:23you. Stock has just listed. It's had a stellar run so far. Is it a good investment for someone
11:29who didn't get the IPO allocation? See, you said it right. It was a stellar run
11:35so far. Got good listing, more than 100%. I would say even more than 140-150%. And that's
11:42a high price to pay for a company because in a housing finance sector, as I said, because
11:49it's trading at a P of around 60-70 odd, price to book of 10-11 whereas you're getting other
11:55companies which is like LIC housing finance at price to earning of 10 and price to book of around
12:021. So, you see the kind of valuation differences there. Yes, I agree that Bajaj housing finance
12:08has done very well in the last 6 years or so. 39% CAGR growth, AUM book of 97,000 odd growth
12:15belonging to a good family, good pedigree. But still somewhere I think valuations are stretched.
12:21It's no point having a FOMO kind of sentiment and cheesing Bajaj. If you want to invest in
12:29housing finance company, I think there are better options. Why not go for LIC housing finance?
12:36The next query is for Adani Energy Solutions, the viewers holding.
12:41The share is at a price of Rs. 1,167 apiece and he's holding 50 shares right now for the past
12:474-5 months. Presently, the stock is hovering around Rs. 988 is what the viewers have said.
12:52He's asking what the next term view should be. Vaishali, I'll come to you with this.
12:56How does Adani Energy Solutions look on the chart? Yes. So, there is no trend right now. It's just
13:02consolidating. So, let's wait and watch. If the stock goes above Rs. 1,020, I guess it will gain
13:08some conviction for a further upside. So, till then, it is just consolidating and nothing much
13:13happening. Even the indicators are showing a sideways move. So, no view right now. But
13:18900 levels should not break. That should be the discipline that one needs to follow.
13:25Okay. Thank you, Gaurav and Vaishali. Just a disclaimer for viewers, NTV Profit is a
13:30subsidiary of AMG Media Networks Limited, which is an Adani Group company. Let's now move on to
13:36the next query for today, which is for Grindel Norton, which the viewer is holding at a share
13:43price of Rs. 2,100 apiece and this is from Suresh Babu, who is from Hyderabad. Now,
13:48he is buying since the past three years and the average price in his portfolio
13:51is currently at Rs. 2,100. He is asking for reasons for the recent downtrend and he is recommending
13:57whether he should add more to his position or hold a book profit. Rajesh, I'll come to you.
14:03Any views on Grindel Norton? See, it's a very strong company,
14:07a strong balance sheet doing very well in its field. It has been giving consistent return
14:12to the investors from a very long period of time. The only problem with this stock is the low volume
14:17which it has. For long-term investors, I think it's a hold from a side and if by any chance it
14:22goes around Rs. 2,000 odd level, then it's a add. Got it. The next query is on Hindustan Zinc.
14:31The viewers, this is from Ramu from Tirupati, Andhra Pradesh and he is currently holding 100
14:37shares of Hindustan Zinc at an average price of Rs. 808 and he is currently facing a loss of Rs. 32,000
14:42and he is asking what he should do next. Rajesh, I'll come to you again. Views on Hindustan Zinc?
14:51Continue to hold, I would say. As we talked sometime back, metals are going to do well.
14:57Not only steel but zinc is also going to do well. It's one of the major raw materials used in
15:02different type of industries. The gold reserves, balance sheet is strong. The only problem which
15:08we are witnessing right now in the correction is just because of the kind of run-up it witnessed
15:14before the dividend announcement and all. Continue to hold.
15:19Hold for Hindustan Zinc. The next query is from Kanak Khattari who is from Ahmedabad and he is
15:25about DCW where he is currently holding 5000 shares at a price of Rs. 57.85 and he is almost
15:33making a profit of Rs. 2 lakhs currently and he is asking whether he should hold his position or
15:37book his profits. Vaishali, I'll come to you. How does DCW look on the charts?
15:42So, I would say the trend is very strong. It is in fact ready for further up move. So,
15:47keep a trailing stop-loss since he is already sitting on a good profit. 90 should act as a
15:51trailing stop-loss and the way the chartical pattern is unfolding right now, I would say
15:59that yes, it's ready for a target of Rs. 110. So, that would be my first target to look for.
16:04Got it. The next query is from, it's for Wellspin Living now. The person has bought
16:1410,000 shares at a price of Rs. 160. Now, the share price did go up to Rs. 210 and then declined
16:20to Rs. 175 and the current market price is Rs. 183. And the viewer is asking if he could hold
16:25this for 1-2 years and looking for the future growth guidance. And this is from Rahul Sharma
16:29from Chandigarh. He is currently making a profit of Rs. 2 lakhs. Rajesh, I'll come to you. Outlook
16:33on Wellspin Living? See, the quantity is very huge, I would say. You should keep a strict
16:40stop-loss at least of your buy price to not turn into losses and continue with the company. For a
16:47longer-term horizon, I think the prospects are very good, doing very well. Recently, they had a
16:53management commentary which said they are expanding in a big way in the European markets also.
16:59Just continue to hold. Okay. Hold for Wellspin Living. Then,
17:05you know, just a quick reminder for viewers, when you do send in your queries to us, do send
17:10your name and location so it will be quicker for you to identify when you later stream the show.
17:14The next query is from Ram Mohan and he is holding 50 shares of Dixon at a price of Rs. 3,445. He is
17:23currently making a profit of Rs. 5 lakhs and he is asking whether he should hold his position or
17:27exit it. Vaishali, I'll come up to you. Do you think Dixon has more upside to go to? What do
17:33the charts say? So far, the way market is going, it's an endless upward move. I would say partial
17:39profit booking should not be ruled out so that once there is a dip, he gets a chance to again
17:44re-enter. Else, keep a trailing stock loss and continue with the ride. It can go towards Rs.
17:4914,400 to Rs. 500. You know, Rajesh, I'll come to you with this too as well. You know,
17:57fundamental outlook on Dixon Technologies? Dixon is a strong company, gainer of PLI scheme. They
18:04have gone into tie-ups with certain companies like Asus and Allport manufacturing. So, that can
18:10be a good long-term story. But at this point of time, considering the valuation trading at 3
18:15digit PE figures, I think the valuation are overstretched. If not full, I would suggest
18:21partial profit booking. Okay, partial profit booking for Dixon Technologies. The next
18:27query is from Jagat from Ahmedabad and it's regarding HDFC Bank and he is currently holding
18:32310 shares at a price of Rs. 1,610. And he is asking for the long-term outlook.
18:39Rajesh, I'll come to you again. Views on HDFC Bank as well as the private banking space?
18:46See, private banking space are doing well. I think some of them are on a strong valuation
18:52to give good long-term returns. For example, Axis Bank or a Kotak or HDFC are good value
18:58picks at this point of time. But as far as HDFC Bank is concerned, we have been very bullish and
19:04have been recommending on your channel to several times. I think it's still a buy at this point of
19:09time. It's one of the 10 largest banks across the world after the merger, going to report around
19:1580,000 crores of profit next year. And I have been stable. The only problem is credit growth,
19:22which I think once the interest rate cut cycle starts happening, it's going to do well. And
19:28not to forget the kind of subsidiaries this bank has like HDFC Securities and others.
19:34They are also doing well. The valuation is extremely cheap. One should buy at this price
19:39for a medium-term horizon by maybe 12 to 18 months, one can give good returns.
19:45Got it, Rajesh. The next is another private bank and the query is from Shivarudrai from Mysore,
19:52Karnataka. Now, he's bought 13,000 shares of IDFC First Bank at a price of Rs. 58.6 in November
19:592022. He's currently sitting on a profit of Rs. 1.8 lakhs. And he's seen not much of an upward
20:08trend. And he's asking whether he should hold or exit some of his position. Vaishali, I'll come to
20:14you first. How does IDFC First Bank look on the charts? So, I would say, technically, it is very
20:20well placed. If it moves, it can go towards 83-88 levels also. But it's been quite a laggard. So,
20:27I mean, right now, when we are focusing on all frontline banks, like to name the banks ICICI
20:33Axis, they have already got into a very good momentum. So, if time is not the factor,
20:37then I would say hold. But otherwise, these are much better stops to look forward.
20:43Got it. The next query we have is from Amit Murkate from Mumbai. Now, he's asking whether
20:48he should buy CDSL today or wait for some correction or for the dip in the counter.
20:55And he's asking what a target would be for a one-year period. So, Rajesh, I'll come to you.
21:03Outlook on CDSL on a more of a one-year basis?
21:08See, we have a very strong view on CDSL. The company has been doing well.
21:12The Demat accounts are increasing by leaps and bounds every month. We are seeing good numbers
21:19coming in. There are only two pillars, NSDL and CDSL. While NSDL is unlisted, you have only one
21:25option in the listed space to participate in this, that is CDSL. With a number of new market
21:31participants coming in, I think there is a good prospect. Not to forget, they are venturing to
21:38insurance dematerialization. So, a lot of things are happening. I think one should continue to
21:42hold. If market corrects for any reason, this stock might see a correction to around Rs.1,400,
21:49that would be a good entry level. But for a long-term investor, I think it's better to buy
21:54and stick tight for the next 12 to 18 months for a target of Rs.1,800.
22:00Thank you, Rajesh, for giving us. We were just cutting across to SBI Chairman C.S. Chetty's
22:05address at the Financial Markets Conference. Do listen in to what he has to say right now.
22:09After China, if you really see, in fact, sometimes I feel China is more homogenous than India.
22:15And India is extremely diversified in culture, in terms of people, languages, and the pursuits of
22:23economic activity, what we do is also extremely diversified, which means that this economy
22:29requires as many diversified players as possible. In fact, that board is a replication of what we
22:37need. If you see that board, it has got every element what is required for the Indian economy.
22:43The mobilization of savings by the banking system and deployment of these funds both by the banks
22:51and non-banking financial companies and NBFCs and MFIs bring the reach and at a lower cost
22:58than what the mainstream banks have. And the fintechs bring the innovation, what you know,
23:05in the financial services, both in terms of the designing the product and the delivery,
23:09more importantly the delivery. So, the trick lies in that what kind of responsible
23:16behavior all these players will bring together. While understandably why the regulator… see,
23:22unlike you talked about banking not having SRO, I think banking is a highly regulated industry.
23:28We do not need an SRO here. So, but in case of NBFCs, there is an SRO, FIDC, FDIC, what is that?
23:36Dr. Raghuram G. Rajan FIDC. No, sir, it's not an SRO, it's not an SRO.
23:39Dr. Sanjay Navani Maybe they are moving towards SRO. And
23:43apart from the self-regulation, I think the primary capital providers have a greater
23:48responsibility. If banks are mobilizing the funds, savings of households,
23:55the responsibility of lending to the NBFCs, MFIs and their lending practices and eventually the
24:04last mile which is being provided by the fintechs, I think the whole life cycle of
24:11the money movement has to be responsibly done primarily by the people who are mobilizing the
24:19savings. That is where the RBI is coming out saying that I am not worried about, I am not
24:24bothered about the who is the front end, but if he is using your capital and if he is using your
24:32name, the responsibility is on you. I think if we understand that and we put the guardrails in place
24:39in terms of the ultimate consumer is getting the money which is made available to by the primary
24:47lenders, I think that is something what is going to help. And I am a strong believer that we have
24:53to have all the financial players operate in India. And they all have to operate in a manner that
25:03we will move towards more inclusivity, more efficiency or more customer centricity. I think
25:10if these three elements are made fundamental to our financial ecosystem, we need not really worry
25:17about too many players being there, too much regulation being there. I think this is something
25:22what we need to adopt. Thank you Mr. Sethi. So, actually we carried forward from the past
25:28discussion where you spoke about inclusion, growth, innovation, coordination. And here
25:35the leader of Indian banking system talking about one more term is using the responsibility.
25:40So, I think this is a vast world where inclusion, innovation, coordination, everything is going to
25:47happen, been happening, but everything has to be done with responsibility. That is the key to India
25:55growth story. That is the key to make the financial system sound and resilient which already is,
26:00but to continue to be in this position and the key to support the India growth. Because in a
26:07country like India, still developing country, unlike developed market here, banking sector
26:12is a proxy for economy. Right, sir? With that note, if you enjoyed, just give him a big hand
26:17and thank you. Thank you very much. Thank you for taking time off on a holiday and coming.
26:23Thank you, sir. Well, that was the SBI Chairman's commentary at the Financial Markets Conclave.
26:28But with that, we're completely out of time on this edition of Ask Profit. Thank you for joining
26:32us on the show today. And viewers, remember you can get all your stock-related queries answered
26:36with our fundamental and technical analysts at the same time tomorrow as well. Stay tuned to NDTV Profit.
30:46Hello and welcome to Hot Money. This is Mahima Vachanjani. Well, before we move on to the stocks
30:50that are in focus on this edition of Hot Money, let's take a quick look on how the markets are
30:55doing. Let's pull up the benchmark indices and see how they are faring out in trade today. Well,
30:58both the Nifty and Sensex did hit record highs in trade today. However, both the indexes are
31:05seeing range-bound trades. The Nifty is trading within a range of roughly 90 to 100 odd points,
31:09currently 0.2% up in trade. The Sensex is also up 0.2% in trade. Let's also pull up the broader
31:18markets and see what they are doing in trade. Well, the broader markets are seeing a tad bit
31:21of pressure. In terms of the mid-cap 150, let's pull up that and see how it's faring in trade,
31:28where it's down almost 0.4%. And the small-cap 250, if we can pull up that, the small-cap 250
31:34is trading flat up around 0.07% only. Let's also pull up the Bank Nifty. It's a very good day for
31:41Bank Nifty today. You know, the range is also wide for bank trades. And in terms of the index,
31:48the index has been gaining and it's almost at its day's high and is up around 1.1%. And it has
31:54crossed the 50 to 600 level mark. So, yesterday it was trading within a range of 50 to 200,
31:59but now it has picked up momentum and is trading within the range of that 50 to 700
32:04levels. Let's also pull up the contributors on the Nifty and see what are the counters
32:08in green and what are the counters in red, where there are stocks like HDFC Bank, ICICI Bank,
32:14some M&M, some counters in green. But the major highlight is the IT space. Well,
32:20all IT sector stocks in red, Infosys, TCS, HCL, Tech, Tech Mahindra. And possible reason why the
32:28Nifty is under pressure is because of the IT stocks. Well, Emphasis badly hit down around 5.5%,
32:35followed by Persistence, TCS, L&T Tech and Tech Mahindra. Let's also pull up the breadth of the
32:41market and see what advance decline ratio looks like. In terms of the advance and decline ratio,
32:47well, the graph looks sort of crazy. But well, the ratio is roughly 1.5 is to 1, whereas the
32:56declines are leading the pack. It's the seller's market today and roughly 1200 odd advances versus
33:02850 odd advances. So, that's how the breadth of the market looks like. Let's also quickly pull up
33:09the NSE 500 and see what are the top gainers and top losers. Well, there you go. There is
33:14losers. Of course, we have IT names like Emphasis, Oracle, Blue Dart. We also have something like
33:20BASF and Heidelberg Cement. But counters in green, well, we have HEG, we have
33:28Graphite, Alkyl Amines and BKG Foods leading the pack. But let's move on and let's welcome in our
33:35guest, Mrs. Sameer Dalal from Natwar Lal and Son Stock Brokers. Welcome to the show, Sameer.
33:42Sameer, before I come to you with your views, the sector in focus today is IT. And a lot of stocks
33:52in the IT space are under pressure and the nifty IT is down almost 3% now as we speak. And we're
33:58joined by Rucha, who has more details on this. Rucha, why is the IT sector in pressure today?
34:06Right. So, nifty IT is falling in trade today. And this is largely on the back of one news that
34:11came out in Accenture wherein Accenture is set to delay its staff promotion from June to December.
34:18Now, this is the information according to Bloomberg. And Bloomberg reports that Accenture
34:22had told its employees in an internal email that they are also considering to permanently
34:28shift the promotion cycle from June to December. Now, I'll tell you why will this be happening.
34:33Now, clients generally set their budget in December for the coming up calendar year. So,
34:38if the December cycle comes into the picture with respect to employee promotion,
34:43the company gets better clarity with respect to how clients are looking on to their budgets and
34:47then the company can decide on to their expenditure like employees, ESOP costs, etc.
34:52So, this might be the reason why Accenture is considering to get a better clarity on demand.
34:57Now, talking about IT as a whole, well, Citi had come out with a note on Accenture per se,
35:01the global team, when it did mention that surveys point to relative demand stability. Now,
35:05mind you that over the last couple of quarters, demand was into pressure because of
35:10different macro uncertainties like war, interest rate, etc. But now the surveys
35:14conducted by Citi indicates that there is relative demand stability, if not a dip in demand.
35:20Also, clients are however, cautiously optimistic towards CY25 budget, which means that CY25,
35:26that is calendar year 25 will likely be better than calendar year 24. But different events like
35:31federal meeting which we have and the election cycle which is coming up this year could also
35:37affect client's budget and hence the budget could also affect how much they spend on IT and hence
35:43reflect in the revenue for IT companies. Now, pressure also continues to be on smaller
35:49discretionary deals. Now, discretionary happens when clients have to cut out on their budget to
35:54accommodate different expenditure as well. So, pressure on smaller deals, although continues
36:00and budget reprioritization is also happening by clients. But comparatively, like if we stand
36:05right now and if we compare IT's outlook back four quarters back, we can see that there is
36:12relatively better green shoots, which even different companies had mentioned in the first
36:16quarter earnings. All right. Well, Rucha, thank you so much for breaking that down for us. Sameer,
36:21I'll come to you on the entire ITPAC. Well, the entire ITPAC is witnessing a lot of pressure
36:27today. Your views on it? So, to sum it up very simply, you know, what your person was talking
36:34about the delay in this thing, I don't think that is the main cause for the correction.
36:39I think what has happened is the IT companies have moved up far more what then fundamentally
36:44justifies, right? We have companies that are targeting and talking of growing their top line
36:49at anywhere between 1 to 7 to 8 percent, maybe HCL tech and persistent on the higher side.
36:54But the balance of them have top line guidances in mixed single digits to even some of them like
37:01enforces targeting 2 to 4. Similarly, a lot of the positives that came even when the growth was not
37:07so great for the IT sector in FY24 was the fact that margin expansion happened and allowed the
37:14profitability to grow at a faster pace. I think a lot of that positivity is right now behind. It's
37:19going to be tough for companies to continually increase their margins going forward. Given the
37:25fact that you're talking of low growth, stable margins, maybe, you know, cash flows are great.
37:29I don't deny the fact that IT companies have good cash flow, but valuations have moved up quite a
37:33bit. And today, one of the simplest things we are talking of a situation where interest rate
37:39cuts are expected to happen. And usually that happens when there is a bit of a slowdown in the
37:44economy or not slowdown, but, you know, the growth momentum has taken a hit. Now, when that happens,
37:51usually companies in the U.S. and where especially Indian IT sector focuses, they probably would look
37:59at, you know, to the U.S. companies to ensure that their margins remain stable can obviously
38:04look at reducing their IT spends. We're not saying that it will not grow, but it may not grow at the
38:08same pace that everyone has factored in and that, you know, FY25 is going to be cautiously optimistic
38:15or optimistic. So given that view, I think a lot of the positives are priced in and the negatives
38:20are not. And I think market is finally taking cognizance of that. And we're seeing a bit of a
38:25correction in the valuations. Can this trend continue for a bit? Yes, I think it can. But given
38:30the fact that these are very strong companies with good cash flows and good growth expected,
38:35maybe two years down the line, corrections may not be very deep and there will be people coming
38:42in to buy at the end of the day. Like I said, we've been saying for a while, mutual funds are
38:45sitting on a large amount of cash and some of the large cap IT companies become the best investment
38:50on correction. So we expect the correction to continue, but it's not expected to be very deep.
38:55All right. Well, that's a very interesting take on the IT space. You do expect the correction
39:00to continue, but it will not last longer is what, you know, you've said. But moving on,
39:06you know, in the reality space, well, Siegel India is buzzing today. Now it's been selected
39:10as an L1 bidder by NHAI and this is for an Ayodhya bypass. Now we have Varsha joining
39:16in with more details on that. Varsha, what's happening with Siegel? Well, yes, Mahima. So
39:21the stock is buzzing on the back of company being selected as L1 bidder by NHAI for the two projects.
39:27One is Northern Ayodhya bypass. The project cost is around 1200 crore and the other one is Southern
39:33Ayodhya bypass for which the project cost is around 1300 crore and the total project value
39:38stands at almost 2500 crore. Now a little bit about the company. Companies and infrastructure
39:43construction firm specializes in elevated roads, flyover, bridges, railways, expressways,
39:48and the order book, if you see order book as on September 24 stands at around 9,470 crore
39:54and 80% of this order is constituted by the projects awarded by NHAI and if you see the
40:00recently secured orders that includes Bhubaneswar metro project and development of Kanpur central
40:06bus terminal and they are managing 18 ongoing projects which includes 13 EPC and 5 HAM projects.
40:12If you see that they are expecting revenue of around 4200 crore in FY25 with EBITDA margins
40:18ranging from 13 to 15% and they also anticipate order inflow of around 4000 to 5000 crore for FY25.
40:26All right, Varsha. Thank you so much for breaking that down. Well, on the back of that
40:30the stock is up 5%. So, significant move on Seagull India today. But Varsha, stick with us.
40:37Emcure is also buzzing in trade today and this is after Kotak Institutional initiates an ad rating
40:43on the particular stock and has given a target price of 1655. What is Kotak
40:50Institution exactly bullish on when it comes to Emcure?
40:53Yeah. So, well, so yes, they have initiated ad rating and with their target price if you see
41:00there is upside potential of 11%. Now, according to them Emcure is one of the few Indian pharma
41:06majors which has no direct US generic exposure and thereby lending greater earnings visibility.
41:13They have greater earnings visibility and despite its industry leading return ratios and no direct
41:20US exposure, Kotak expects Emcure to trade at a discount to other domestic focus companies such
41:26as Mankind, Torrent and JB owing to its relatively inconsistent domestic track record and risk of
41:32any further repercussions from the US drug fixing case. Emcure, so it is the fifth largest
41:39company by domestic sales and with top position when it comes to gynecology and Kotak has projected
41:4414% overall sales CAGR from FY24 to 27 and this sales is led by organic growth, Sodofi deal and
41:52Mantra consolidation and Kotak is also expecting 30% increase when it comes, 30% growth in EPS
42:00from 24 to 27 because of higher MR productivity, the capacity utilization and lower interest costs
42:07and Kotak has also highlighted risk for the same. So, they are expecting potential further
42:12repercussion from US and Canada drug price fixing cases, new litigations and IPM growth
42:18under performance are some of the risks which are being highlighted by the Kotak.
42:22All right, Varsha, thank you so much for breaking that down for us. Sameer, you know Emcure of
42:27course is buzzing in trade today but the pharma space as a whole, you know, has been in the news
42:33since, you know, the past two, three weeks. Your take on the entire pharma space?
42:38So, we remain quite positive and constructive on companies that cater to the global markets,
42:43right, because there are a huge number of large patent drugs coming off patent which gives a
42:49huge opportunity for these Indian exporters who have the generic business to grow that
42:55angle of the business. You have a lot of ANDAs filed by the larger companies which would be
43:00Cipla, Lupin, Sun Pharma, Dr. Reddy's and, you know, as some of these start getting the lighter
43:05day, what you will see is the top line and the profitability for these companies continue to grow.
43:10But we still remain very positive and more constructive on the larger pharma plays and
43:15in particular Sun Pharma, simply put for the reason that Sun Pharma is not only working on
43:19a generics business but they're working on generics with a twist in the sense that they're
43:25doing branded generics, you know, in certain products which allows them to have a better
43:30pricing and we believe that at the end of the day will allow them to have better profitability and
43:35margins. Again, like I said, the opportunity is quite large. The problem, I guess, across not
43:41only the pharma space but entirely across the market is for a lot of these companies, the
43:46valuations have moved up quite significantly. So, a lot of the positives have been factored
43:51into a lot of these stocks. From here, we are not expecting major re-rating. In fact, if anything,
43:57the ratings would probably, I mean, the valuation multiples could probably move a little bit down
44:02and you could see the stocks moving sideways over a period of time. Though the growth,
44:07we expect it to remain strong but we are constructive and on correction, we would
44:12definitely recommend buying certain pharma counters. But like I said, we would like to
44:16have a 10-15% correction in the market and overall in the pharma space as well.
44:21All right. Well, the pharma space as a whole is under pressure today. Only MQR buzzing in trade
44:26today, it's up 3%. But the nifty pharma, if you can pull up that, stocks like Abbott, Biocorn,
44:31Loris Labs, Glenmark, Zydus Life, all of those counters in the red and under pressure. But
44:39moving on, another stock that is buzzing today is SKF India and there's a Nuvama note which has
44:46come out on SKF India where they've said that the parent carving out automotive business
44:53might be a positive for the company. And we have Puneet joining in with more details on that.
44:57Puneet, what is Nuvama saying about the SKF business?
45:03Well, definitely. So, it's a very important transaction that's happening. The Swedish
45:06company is separating its automotive as well as its industrial division. And separately,
45:11they've released a press release argumenting and augmenting what the company's plan is going
45:15forward. So, specifically, the automotive division will be separately listed on Nasdaq in Stockholm.
45:21Going forward, they're expecting that calendar 25 is going to be the first year of where this
45:25operation will be separated and expecting to list by 2026. Now, Nuvama has written a note on the
45:32same. They are mentioning that the company is planning to unlock value via creation of two
45:38separate independent companies which will have an independent board. And as well as the investment
45:42decision will be separately handled by both these companies. They mentioned that the independent
45:46focus and performance will drive both the businesses very strongly going forward as well.
45:52They mentioned the spinoff is expected to be completed by calendar 25, as we mentioned.
45:56And SKF is planning to list also this particular division by first half of calendar year of 2026.
46:02Now, Nuvama believes that SKF India should also benefit from this split because the expectation
46:08is that the India business will also have two separate companies. It's important to note and
46:14also see if the automotive division in India is also separately listed on the stock exchange year
46:19in India as well. They are seeing a potential beneficiary of enhanced focus on the automotive
46:25division as well as this margin. So, just to put some perspective for calendar year 2023,
46:30the automotive division contributed roughly 40% of their total revenues of about 80,000 odd crores
46:35for the global level. But the margins were around 5.6% compared to that industrial division had
46:40roughly around 15.6% of the margin. So, the industrial division also has a higher revenue
46:46contribution of 60% in the total business as well as higher margins. They are estimating that
46:51benefits of this particular separation will outstrip any kind of cost that the company
46:56might incur for this separation. So, it's overall a very positive news flow. We'll await more
47:02details from the India entity specifically of what happens within India and what's the plan
47:07going forward, but definitely a positive on a global level and some more details awaited
47:11after quarter 2 for SKF India. Back to you. All right, Puneet. Well, thank you so much
47:15for breaking that down for us. Well, the stock did see an up move in the start of the trade.
47:19However, it has cooled off and it's down around 0.4% as we speak. But Sameer, what do you think
47:25about SKF India splitting its businesses? So, it's too early to tell what exactly would be
47:31the outcome of this, but look, there are two ways of looking at it, right? Whenever we look at some
47:37companies merging similar kind of businesses, we always talk about operational efficiencies
47:42that come through which benefit. So, when you're splitting off a business, sometimes what happens
47:47is you have a double cost structure also that would happen. But what it also brings in is a bit
47:51of focus into a business, right? Today, if the industrial business is more profitable, the capital
47:56deployed from the business towards the industrial side obviously increases because that's where your
48:00ROEs are better and at the end of the day, any top management wants to ensure that you get the
48:05most bang for your buck. So, by sometimes separating out the two businesses, what you could definitely
48:10get is a better focus on each of the businesses. The auto business which does have a bit of a lower
48:17margin could get more focus on more product profile or whatever, which could drive. So,
48:22we need to see exactly how they plan on carving it out and then what the two separate business
48:26strategies are. It's too early to say what will happen. What we do know at the moment is, look,
48:31the businesses are doing relatively okay. Growth has been a challenge and it's not been growing
48:36very aggressively. The company where it has benefited has been the margins. They've actually
48:41been able to increase the margins over a period of years. So, if they're able to continue doing
48:46that even as a separate thing, that's great. But valuations, again, have moved up a company
48:52in the auto ancillary trading at about 45 times earnings. It's not cheap because at the end of
48:57the day, they are a B2B player, not a B2C. B2B should always get much lower valuation because
49:02margin expansions become tougher when you're selling to an OEM or to any of these entities
49:07which know what the costing is and they also want to keep their costs in check. So, where we find
49:12difficulty is valuation. Business growth, I don't think, is a major concern. It will be slow,
49:16tepid. But we are not expecting any major run-up in the near term just because of the value,
49:21I mean, just because of the de-mergers. There's no value-unlocking. It's just a
49:24de-merger of the two entities. All right. Well, but another stock that is buzzing is
49:31Nava Limited. Now, it's mainly a ferroalloy manufacturer with presence in India as well as
49:37Africa. But it's actually the company's other businesses that could be driving the growth for
49:42the stock this year. And we have Mika joining in with more details on that. Mika, what are
49:47you picking up? Nava Stocks has been buzzing for a couple of days now, hit an intraday high of 7.24%
49:53today. It's up 33% in the last five days and 195% year-to-date. Now, the company did have
50:00a strong Q1 results where revenue, EBITDA and profits grew 17.3%, 10% and 30% respectively.
50:07And the growth was mainly driven by the power segment. And the stock did start seeing a
50:11pickup in the first week of June, actually. When you talk about segment-wise drivers, well,
50:16in terms of energy, the company operates Zambia's only thermal power set. And the
50:22300-megawatt capacity that the company has accounts for 9% of Zambia's total energy capacity.
50:29In terms of the agribusiness segment, the company is actually betting on avocados. Now,
50:33Nava Avocado is establishing large avocado plantations across Africa. They aim to plant
50:38over 4 lakh trees by 2027. 91,500 trees have already been planted and 1 lakh more trees will
50:46be planted by November of 2024 and March of 2025 each. And they expect revenues of 3 to 4 million
50:52in FY26 with peak revenues starting from 2027-2028. In the mining sector, the subsidiary
50:59Mamba Kolaris has been issued two large-scale exploration licenses in July 24 for lithium,
51:07amethyst, aquamarine, tin exploration. This is around 8,200 hectares area. The company also
51:14operates Zambia's largest coal mine via Mamba Energy with reserves of 193 million tons,
51:19which provide a consistent cash flow source. And lastly, the company has also reduced its debt.
51:23The company and its subsidiaries have completely paid their debt as of FY24. And the zero debt
51:29will help reduce their interest costs going ahead. And they plan to be a debt-free company,
51:34except one subsidiary, which will go into expansion, which is their mining subsidiary.
51:39That subsidiary could take on a little more debt, but the stock has several growth drivers so far.
51:44Well, thank you so much for breaking that down for us, Meka. And that's a significant
51:49deep dive that you've done for the stock. Well, Sameer, interesting stock here. It's
51:55ideally a metal company, but it's furrowing into avocados and stuff. Your view on Nava?
52:02Sadly, this is one of the counters we haven't studied in the past. It's impossible for me to
52:06comment. Okay, no worries. So then we'll shift focus to Reliance Infra. Now, Reliance Infra is
52:13up 5% today, which is not normal for a company like Reliance Infra. Now,
52:18multiple exchange filings. To start with, they are set to settle dispute between Adani Electricity
52:24Mumbai and Adani Electricity Solutions. They're also set to settle the dispute and the breach of
52:30agreement relating to transfer of Mumbai power business. And parties have agreed to withdraw
52:35claims against each other and no monetary consideration exchanged between these parties.
52:39Now, they've completed one-time settlement with LIC relating to NCDs, which were issued by the
52:45company, which was worth 600 crores. And overall also, they've guided that net worth of the company
52:51stands at 9041 and they cleared...