- #Dmart trades towards the day's low after a muted Q3 business update
- #MarksansPharma gains as volumes trade nearly 5 times its 30-day average
Agam Vakil brings you block deal highlights of the day on 'Large Trades'. #NDTVProfitLive
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- #MarksansPharma gains as volumes trade nearly 5 times its 30-day average
Agam Vakil brings you block deal highlights of the day on 'Large Trades'. #NDTVProfitLive
_______________________________________________________
For more videos subscribe to our channel: https://www.youtube.com/@NDTVProfitIndia
Visit NDTV Profit for more news: https://www.ndtvprofit.com/
Don't enter the stock market unaware. Read all Research Reports here: https://www.ndtvprofit.com/research-reports
Follow NDTV Profit here
Twitter: https://twitter.com/NDTVProfitIndia , https://twitter.com/NDTVProfit
LinkedIn: https://www.linkedin.com/company/ndtvprofit
#ndtvprofit #stockmarket #news #ndtv #business #finance #mutualfunds #sharemarket
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TVTranscript
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01:35 Supreme Court gives clean shit to Adani in Hindenburg case,
01:40 dismisses all allegations, says there is no need to interfere
01:44 with the SEBI probe.
01:47 Markets gave thumbs up to the Adani Hindenburg case.
01:51 Nifty is off days lows, Sensex below 71,600.
01:55 Broader markets outperformed. Adani grouped companies at 57,000 crore rupees in market cap.
02:01 Meanwhile, IT and metals extend losses.
02:06 PSU banks, realty, and oil and gas trade in the green.
02:12 Petroleum minister Hardeep Singh Puri has poured water on fuel price cut expectations.
02:19 He said there has been no discussion on oil companies on the fuel price cuts.
02:24 And India's manufacturing PMI falls to an 18-month low in December,
02:32 falls to 54.9 in December, from 56 in November.
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02:42 Hello and welcome. You're watching Last Trades. I am Agam Vakil.
02:52 And in this show, we talk about bulk deals, block deals, and several volume buzzers.
02:58 And today, of course, Adani group companies do stand in terms of volumes.
03:02 But if you keep that on the side as well, there are plenty of other pockets in the markets
03:06 which are extremely active. Well, for now, at least as far as the markets are concerned,
03:10 we've seen a little bit of a lift off from the day's lows.
03:14 At the moment, we are seeing a little bit of recovery,
03:17 even though the benchmarks are currently trending in the red.
03:20 They're not anywhere close to the day's lows.
03:24 And, well, of course, while the Sensex and the Nifty are currently trending lower,
03:29 we do have the bank Nifty, which will be in focus and which is now nearly in the green.
03:35 At the moment, of course, we also have the weekly options,
03:39 the first weekly options expiry for the bank Nifty of the year.
03:43 And it's certainly been a very volatile one, to say the least,
03:46 considering that's the intraday chart for you, as you can see.
03:49 It's certainly been a very interesting one as well.
03:52 To very quickly take a look at some of the bigger movers in the broader markets.
03:56 And it is the broader markets where we are seeing the most amount of activity.
04:00 So, you know, say for the whole host of your Adani group companies,
04:04 which are in fact advancing and have advanced through the course of the day.
04:08 And even though they have come off from these highs,
04:10 they're all mostly largely trending in the green.
04:13 For example, Adani Enterprises, Adani Ports, Adani Green, Adani Power,
04:18 all of them up and about and advancing and making good gains through the course of the day.
04:23 And as I've already suggested, that they have already added about a good 57,000 crores
04:28 in terms of the market cap only in today's day of trade.
04:32 Besides the Adani group companies, we're looking at Bandhan Bank,
04:35 which is up around 5.9 percent.
04:37 And this is also buzzing on big volumes.
04:40 We also have gains in Banco Baroda.
04:42 That's up around 1.6 percent.
04:44 And this is largely what's happening in the bank Nifty
04:47 in terms of some of your relatively larger movers.
04:50 Even if you consider the mid-cap index, that's, you know,
04:53 while it does have a mixed trend, within it, we do have gains in the likes of,
04:58 you know, something like a Biocon, which is up around 4 percent.
05:01 Btm is up around 3.7 percent.
05:04 And Indian Hotels has once again resumed its up move in today's day of trade
05:09 with a gain of around 3.4 percent.
05:12 On the losing end, however, a little more weakness in some of your IT names.
05:16 That would include something like an Emphasis, which is down 3.3 percent.
05:20 CoForge is declining around 1.6 percent, though it is off days lows.
05:25 And we also have some amount of weakness in Persistent Systems
05:29 and L&T Technology Services.
05:32 So, well, that's largely what we have in terms of the broader markets.
05:36 From there on, let's talk about all the companies that we are discussing
05:41 in today's day of trade.
05:43 And, well, we do have Avenue Supermarkets, an update from there.
05:46 So we're going to talk about that.
05:47 FDC, of course, will also be in focus.
05:50 We have something like, you know, VST Industries,
05:54 where we understand a Markey investor has come in
05:57 and increased the family stake in VST Industries.
06:00 We'll talk about that in a lot more detail.
06:02 IOB, Central Bank and Marks & Farmer.
06:05 Marks & Farmer is the other sharp mover in today's day of trade.
06:08 So we will be addressing that as well.
06:10 And from there on, let's move on and pick up on the first stock
06:14 that we want to address, and that is FDC.
06:18 And this one has jumped on large trades.
06:20 It has seen a substantial amount of traction in volumes,
06:23 and, of course, it's also trending higher in today's day of trade.
06:26 Let's get in our colleague, Mihika, to give us an update on this one.
06:29 Mihika, good afternoon.
06:30 Good afternoon.
06:31 So, yes, FDC is one of the top volume buzzers for the day,
06:35 with volumes at 19 times its 30-day average,
06:39 and it's reached an intraday high of 8.58%.
06:42 And while the stock is up 4% in the past month,
06:45 it's up 52% in the past year.
06:48 The total volumes did stand at 36.73 lakh shares,
06:52 and the highest volumes were at a price of Rs. 420.
06:55 Now, when you look at the valuations with respect to the peers,
06:58 it is pretty cheap, and it's among the low three.
07:03 It has a P/E ratio of 35.56,
07:06 while Lupin has the highest and the most expensive at 148,
07:10 and Dr. Reddy Laboratories has the lowest P/E ratio of 21.88.
07:15 In terms of its quarter 2 results,
07:17 it did post a revenue growth of 9.3% on a year-on-year basis
07:20 to Rs. 486.37 crores.
07:23 Its EBITDA was up 13%,
07:26 and this was on the back of improved cost of goods sales
07:30 and low operating costs.
07:31 And its net profit also saw almost a 35% jump.
07:34 In terms of the company,
07:37 its top brand, Orel Electrolytes,
07:40 has 71% market share in the market it operates.
07:43 And the company is also the category leader
07:45 in the sections that are more fragmented in terms of the market,
07:50 this is brands like Electra, Ziffy, and Enerza.
07:53 And finally, for the future outlook,
07:55 the company is growing its profitable export business
07:58 at a small scale, and it plans to do that.
08:00 And it has a more prominent presence
08:03 in the western northern parts of India,
08:05 but it's going to penetrate into the east
08:07 through Bihar, Orissa, and then West Bengal.
08:09 And lastly, it's been refraining to introduce newer brands
08:14 and focusing on the line extension of the current brands,
08:16 but it is looking into new introductions to their portfolio as well.
08:20 - Mihika, thank you so much for getting us those updates,
08:23 and some very interesting insights coming in there as well,
08:26 as far as that particular account is concerned.
08:28 Do keep that on your radar,
08:30 based on all the details that Mihika has given us.
08:32 And from there on, we move on to a large cap stock,
08:35 and that's DMart.
08:36 So Avenue Supermarts has come out with this quarterly update,
08:39 and at the moment, if you consider today's volumes
08:43 as well as yesterday's volumes taken together,
08:45 these are the highest that we've seen since the month of October in 2023,
08:49 on an intraday basis, of course.
08:51 Now, Avenue Supermarts has given us a significantly strong
08:56 revenue growth on a year-on-year basis,
08:58 but this is relative to the rest of the market.
09:01 The question really is that where do you go
09:03 when it comes to valuations of this particular company,
09:05 keeping in mind the several challenges with respect to its profitability?
09:09 While it has strong profitability,
09:11 the margins is what it does see in terms of volatility.
09:14 But I'm going to say no more and get in our colleague Mahima
09:17 to give us an update on not just what's happening with the company
09:21 in terms of its quarterly update,
09:23 but also what a whole host of brokerages are saying about this.
09:26 Mahima.
09:27 Right, Agam.
09:28 So as you rightly mentioned,
09:29 the brokerages have a mixed review on Avenue Supermarts.
09:32 But before I move on to the brokerages,
09:34 I'll quickly talk about the company update that came in
09:37 from their exchange filings.
09:39 They've posted their revenue for the quarter three,
09:42 and the revenue has been up 17.2% year-on-year.
09:45 And they've also added five stores in Q3,
09:48 and their total stores now stand at 341.
09:52 Now, moving on, let's find out what the brokerages have to say.
09:56 We had a Citi report on Avenue Supermarts,
09:59 which has maintained a sell rating with a target price of 3,100.
10:02 They've mentioned that Q2 FY24 throughput remains weak,
10:07 and slower store growth is quite disappointing.
10:10 They believe that revenue per square foot has remained impacted
10:13 because of their inferior product mix
10:16 and the store additions in smaller towns.
10:18 They've also mentioned that they remain cautious
10:20 at the current valuation,
10:21 given the risk around the store additions.
10:24 We also had a Morgan Stanley report on Avenue Supermarts,
10:27 which is quite opposite to what Citi has to say.
10:30 Avenue Supermarts still remains a top pick for Morgan Stanley
10:36 and has rated overweight with a target price of 4,471.
10:41 They believe that Q3 stand alone revenue was lower 5%
10:45 as per their estimates.
10:47 However, they believe in the network expansion,
10:50 and they also have given risks to upside
10:53 as to aggressive store expansion and improvement in product mix.
10:56 They've also given risks to downside,
10:58 which is failure to expand D-Mart ready in large cities.
11:01 However, overall, they've given a very positive review
11:04 about Avenue Supermarts.
11:05 Talking about the stock performance,
11:06 the stock hit an intraday low of 3.98% today,
11:10 and the stock has fallen to 0.27% YTD overall, if we see.
11:14 And if we talk about analyst recommendations,
11:16 they also give a mixed review where 11 say buy,
11:19 6 say hold, and 8 say sell.
11:22 So overall, a mixed review for Avenue Supermarts on the streets.
11:25 All right, Mayima.
11:26 Thanks so much for getting us those updates.
11:28 Certainly an expensive stock,
11:30 and a stock which in fact also enjoys a certain scarcity premium
11:33 considering institutional and promoter holding is substantial,
11:37 and if I'm not mistaken, well over 90%
11:40 as far as their holding is concerned in Avenue Supermarts.
11:43 But again, it's a mixed one,
11:46 and that's largely on account of the kind of valuations
11:49 that the company enjoys.
11:50 But on that note, we slip into a short break,
11:53 but on the other side, we talk about a whole host of stocks
11:55 that are lined up for last race.
11:57 Stay tuned in.
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15:05 - Welcome back to Last Trace.
15:08 And now we shift and put spotlight
15:11 to two relatively smaller PSU banks,
15:14 Indian Overseas Bank as well as Central Bank of India.
15:17 And they're both also buzzing on account of Last Trace
15:20 as well as volumes coming through.
15:22 Let's get in my colleague Harsh Setta
15:24 to give us an update on this one.
15:26 Harsh, good afternoon. What do you have for us?
15:28 - Well, yes, Agam, so, you know,
15:30 relatively, as you correctly mentioned,
15:32 relatively smaller PSU banks.
15:34 But, you know, the kind of volumes that we're seeing
15:36 is probably just 0.01% of the total
15:40 capital. But when you're looking at it
15:43 in the overall context, the free float
15:45 for both of these banks is 4% to 7%.
15:49 And therefore, you have a very, very thin free float
15:52 in any case. And when you are factoring that,
15:55 when you're taking that into consideration,
15:57 you are seeing that any kind of large trade
16:01 could start to impact the stock price.
16:03 And therefore, you're seeing sharp movements
16:05 on both of those counters on an otherwise,
16:07 you know, in an otherwise weak market overall.
16:10 I mean, the broad-based markets are doing quite well,
16:13 but otherwise. So, you know, when you're looking
16:16 at these two counters, what one must keep in mind
16:19 is they're already trading at rich valuations.
16:21 You know, the central bank is trading
16:24 at 1.5 times price to book.
16:26 And Indian Overseas Bank is trading
16:28 at 3.2 times price to book.
16:30 That's more expensive than an HDFC bank.
16:32 Again, largely due to the fact that they're very, very,
16:36 their free float is very, very small.
16:39 So, a couple of those things to be kept in mind,
16:40 but two large trades coming in, 11 lakh and 10 lakh shares each,
16:44 due to which you are seeing a little bit of a buzz on the stock.
16:47 Thank you so much, Harsh, for getting us that update.
16:50 Of course, we must remember, and as Harsh has already pointed out,
16:53 it is, you know, these banks also enjoy
16:56 a certain scarcity premium because of the fact
16:58 that the free float is not a very large one
17:02 as compared to several other stocks,
17:04 and perhaps many which are out there in distant states,
17:08 especially in the private sector space.
17:09 But from there on, we move on to VST Industries.
17:12 Now, we spoke about VST Industries in yesterday's day of trade as well,
17:15 on account of that big block deal.
17:18 Of course, it was locked in upper circuit yesterday.
17:20 Today as well, it started off with a lot of strength,
17:23 but it has given away a lot of its gains,
17:26 at least in today's day of trade.
17:28 Let's get in my colleague Anushi Vakaria,
17:31 who will give us perhaps an update and a little bit of a history
17:36 when it comes to Radhakrishnan Damani and his family's ownership
17:40 in VST Industries, as well as several other factors
17:43 that we can talk about. Anushi.
17:45 Right. So, as you mentioned, the stock was in focus yesterday
17:48 after the block deal happened,
17:50 wherein Radhakrishnan Damani increased his stake of about 1.44% in VST.
17:56 So, this was after he bought about 2.23 lakh shares
17:59 at a price of Rs. 3,390.
18:02 But now, if you look back at the history,
18:05 let's go back to March 16, when the initial investment took place.
18:10 And with the initial investment stake of being 25.95%
18:15 through his investment vehicle, Bridecom,
18:18 which gradually increased to 32.89% in the September 23 quarter,
18:23 if you look at.
18:25 So, now with this, there is another 1.44% stake.
18:28 That comes about 34% cumulative stake.
18:32 But to understand why the increase in stake is happening,
18:36 let's just look at the operational performance over the course
18:40 when he first made his entry to this point,
18:42 wherein if you look at the revenue from operations,
18:45 they have increased from Rs. 883 crores to about 1,672 crores right now,
18:51 showcasing about 10% of revenue CAGR growth
18:55 between the FY16 to FY17 period.
18:58 And if you look at the recent quarters though,
19:01 while the revenue growth did show a good upside,
19:05 the EBITDA margins have gone down.
19:08 Like if you look at the FY16, it's about 26.9%.
19:12 That has now shifted to 22.9% in the FY23 year-end.
19:16 And in the recent quarters also, the last September quarter,
19:20 the margins stood at about 17.4%.
19:23 So, that remains a question as to what is driving the margins lower.
19:27 But now, if you look at the stock performance,
19:29 the stock performance has been up about 24% in the past one year
19:33 and about 14% in the six months.
19:35 So, that is all on VST Industries today.
19:38 Right. So, basically, there are two takeaways here.
19:41 In this case, the stock is showing a reasonable amount of growth.
19:45 It's in double digit.
19:47 Since the time that the family has started putting buying stake
19:51 and gradually increasing stake in the company.
19:55 And the second takeaway, of course, is that, well, we must remember
19:59 that the ownership is not just one or two of its entities.
20:04 All the entities, along with several other family members,
20:08 which have, in fact, increased, taken together,
20:11 will come together and that's the reason why we see that large number
20:15 when it comes to ownership in that particular stock.
20:18 And that's the other big takeaway, that that is also, of course, increasing.
20:22 The question really is that, despite the fact that volumes
20:26 have not exactly been great, we do see an uptick in revenue.
20:30 And there has been a little bit of pressure when it comes to margins.
20:34 That's still, well, we still have to wait and watch whether or not
20:38 we are going to, in fact, see an improvement there.
20:41 But also remember that VST Industries, while we have seen an improvement
20:45 in its revenues and its EPS continues to grow,
20:49 we really haven't seen too much change in the stock.
20:51 So, that actually begs the question whether or not there is, in fact,
20:55 value in this particular company and is that the real reason why
20:59 the family is, in fact, going ahead and increasing stakes.
21:03 That's the big question mark and that's perhaps one of the reasons why,
21:07 well, there could be conjecture that the family has looked at it
21:12 and increased their respective stakes in the particular company.
21:16 But from there on, we move on and talk about Marks & Pharma.
21:20 This is the final stock that we want to talk about in this show.
21:23 That one is also up and about, in fact, trading near life highs,
21:26 if I'm not mistaken. But I'm going to get in my colleague, Hemansh,
21:29 to talk to us about that one. Hemansh, good afternoon.
21:32 Good afternoon, Nagam. Marks & Pharma, the stock is a three-bagger in the last year
21:37 and this comes after the company, it's really on high volumes today,
21:41 eight, nearly four, nearly five times their 30-day averages.
21:45 And what we are seeing play out for this generic pharmaceutical manufacturer
21:51 is the fact that it has seen some tailwinds in its direction.
21:56 It operates in markets such as US, UK and Australia,
22:00 shipping its products there.
22:03 And 40 to 44% of its market is in US and then you have the other half in Europe.
22:09 And then 10% contribution of sorts is coming in from Australia.
22:13 And what's really fundamentally what's been exciting for the stock lately,
22:18 is the fact that it has a robust pipeline of about six to seven approvals that are underway.
22:24 It also is eyeing to increase its foothold in these key markets.
22:29 Lastly, the company is also planning to apply for Brufen as one of the drugs
22:34 it's going to be manufacturing, which has a very sizable market
22:37 and you are going to see substantial accretion to its top line
22:41 as well as margins which are going to translate to bottom line accretion.
22:45 And that's really what's auguring for the stock really well.
22:49 No apparent news flow, but it's certainly one of the top gainers on the Nifty 500 today.
22:53 Right, and Brufen is going to be a game changer because it is such a widely used drug.
22:59 Well, Himansh, thank you so much for joining us and getting us that bit on Marks and Pharma as well,
23:04 which is also one of the biggest movers in today's geofreed in the broader markets.
23:08 But from there onwards, we move on to Bengaluru,
23:12 where the car rental platform ZoomCar recently completed its SPAC merger
23:18 and listed on the Nasdaq at the cusp of the New Year.
23:22 To talk more about that, well, we spoke to the management,
23:26 that is Greg Moran, the founder of ZoomCar.
23:30 Listen in to what he has to say.
23:33 People have to realize that when you go public, it's always just one point in time.
23:40 Being a public entity, it's a journey.
23:43 And so just going and completing a listing is not a destination in and of itself.
23:48 And value gets created over multiple quarters, multiple years.
23:52 And generally speaking, there's a cadence and a trajectory towards building that overall footprint,
23:59 building that story, building the narrative and showcasing those fundamentals consistently over time.
24:05 And we're confident where the fundamentals of the business are in terms of growth and profitability.
24:10 And that's something that we'll be talking a lot more about here in the coming months.
24:15 And with that, it's a wrap on large trades.
24:19 But don't go anywhere. On the other side of this break, we get you India market close.
24:23 Stay tuned to IndyTV Profit.
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