Stocks In Focus | HCLTech, NBCC, Zee, LIC & More | BQ Prime
Ventura Securities' Vinit Bolinjkar shares insight on HCLTech, NBCC, Zee and other stocks to watch for in trade today. #BQLive
Transcript
00:00 Hello and welcome to BK Prime. A very good morning to all the viewers. I am Meera Dhadia.
00:04 Clearly, the pressure does continue in terms of markets and we are trading below the 19,450
00:10 mark, nearly at the day's lowest levels. Pressure continues to build up in terms of bank nifty
00:15 as well, cuts of little over 200 points coming in, in terms of bank nifty and the advance
00:20 defined ratio pretty much in favour of the bears. A lot of stock specific action in fact
00:26 that we have been witnessing. Joining us also to discuss more on the stocks that are in
00:31 focus is Vineet Bulinchkar, Head of Research at VentureSecurities. Vineet, good morning
00:36 and welcome to the show. Good morning, Heeral and thanks for having me. Always a pleasure
00:42 to speak to you. Vineet, let's start with the stock which is buzzing in 3.5% up move
00:47 coming in, in terms of HCL tech on the back of a deal win. Now, clearly, we have been
00:53 talking about the IT sector but the deal making process has absolutely slowed down. But in
00:58 the last couple of trading sessions or since the earnings season to now, from an Infosys
01:03 to a TCS to an HCL tech, I have all seen deal wins in that range of 1.5 to 2.1 billion dollars.
01:11 How do you look at it and what's your view on HCL tech? So, you know, there are a couple
01:17 of things that are playing out. You know, we saw over the last quarter a steep decline
01:22 in deal flow. But you know, it's just looking like it's picking up. Early days yet. Second
01:28 is there is going to be a flight to the dollar. So, we expect the dollar to be slightly strong
01:34 and that is also driving the sentiment given that the rupee depreciation helps earnings
01:38 in the Indian context. We continue to maintain a kind of a cautious stand on all IT investments
01:48 because we believe that the domestic story offers significant or better upside from current
01:55 levels in terms of earnings growth and valuations than the IT stocks. And we believe that the
02:02 IT stocks has a veritable risk of the US economy slowing down, number one, although it's not
02:07 defined trends. Number two is, you know, we are seeing bank consolidation that should
02:13 slow down BFSR revenues. And third is the disruption coming in from the AI and ML space.
02:22 So we continue to be a little guarded out here. And, you know, no love is lost if you
02:26 are buying domestic stories because the frenzy is really strong. And we expect this to play
02:32 out over the next three years. Right. So that's with regards to where HCL tech and IT as a
02:39 sector goes. Moving on, Hero Moto reported numbers. What would you advise investors to
02:44 do with the Hero Moto? So Hero Moto is trying to premiumize and, you know, their valuations
02:51 at 50 percent compared to the other guys, TVS and Enfield and also Bajaj Auto. You know,
02:58 we believe that there is a case for buying the stock and, you know, they are also trying
03:04 to lower costs and, you know, grow the EV business quite handsomely. So we believe that
03:10 there is a case for buying the stock with very, very good margin of safety. And we think
03:18 that this is a play at current levels to get in. Right. Vini, moving on, let's look at
03:34 another counter, which is LIC, which has reported numbers. Right. LIC, again, the profitability
03:40 has been pretty good. How are you looking at LIC? So LIC continues to have a very, very
03:47 strong market share despite intense competition and 60 percent plus market share maintenance
03:54 in spite of so many players with deep pockets coming into the Indian markets speaks volumes
04:00 for LIC's performance. You know, they are launching a number of profitability products
04:06 which should help gain, improve profitability. And we are seeing that play out in the numbers.
04:12 Second thing is, you know, if you look at the strength of its agents, which is there,
04:19 is helping it continue to sustain leadership. And given all these factors, we believe that
04:26 LIC at current prices is definitely a good stock to buy into. Right. Vini, moving on
04:34 Biocon, now the PharmaPak as a whole has been in focus as well, right? Biocon, the numbers
04:40 have been, sorry, missed street estimates. What would you advise investors to do with
04:45 the Biocon? So, you know, we have a slightly contra call out here. We are quite optimistic
04:50 on Biocon. We believe that the biosimilar space will do well. Syngene is also reverberating
04:56 quite nicely and we expect the generics business to also face an uptake. So with all three
05:03 segments expected to play out quite nicely over the next two years, we think that Biocon
05:11 should be bought into more than, you know, what the street expects of a, you know, like
05:16 a hold or a sell kind of trade out here. So Biocon is one of my good PharmaPaks currently.
05:24 Right. We need Mazgon Dock. That counter has seen some spectacular gains. The order book
05:31 is pretty strong as well. How are you looking at a Mazgon? Do you think it's still a good
05:36 time to enter the counter or would you advise investors to book profits? You know, I'm staying
05:41 away from this counter because I think, you know, we are going to see earnings peak out
05:46 in FY25. Okay. After that, although they have a very good order book till FY27, we have
05:52 seen margin curtailment. Costs have not been passed through. And although their order pipeline
05:59 or the reference for proposals are very strong, you know, it's a zero one kind of a trade.
06:05 So either L&T gets it or Mazgon Docks gets it. So in light of this fact, you know, I
06:12 would want to stay away from this counter and I would flip my trade for Cochin Shipyard,
06:20 which I believe can do very well since the stock is relatively cheaper than Mazgon Docks.
06:26 Right. So that's with regard to where Mazgon Docks goes and Cochin Shipyard comes in as
06:33 a preferred bet. Moving on, you know, on the back of the MSCI retail, you know, a lot of
06:40 focus that has shifted in terms of companies like Supreme Industries, the Shockley Laird,
06:44 HDFC, AMC, IDFC, PFC and a whole host of other names as well. What's your view on these names
06:53 on the back of the rejig and the inclusions and where would your bets be? So PFC, RFC
07:00 are favorites. Which are the other stocks that you mentioned? There is Supreme Industries,
07:08 Shockley Laird, HDFC, AMC, IDFC first. IDFC first also continues to be one of our buy
07:16 candidates in the banking sector because the bank has got its act right and the growth
07:23 in the AUM is quite nice. Margins are ticking along nicely and it's very capitalized. NPAs
07:30 are also under control. So we believe that this stock will continue to do well.
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