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00:00 percent that pack, oil and gas is up about eight tenths of a percent as well as PSU
00:04 banking pack is up about eight tenths of a percent or thereabouts. We're focusing
00:08 in on a particular stock that is losing ground though and that is Metro Brands
00:12 on the back of its earnings. It was down about four percent earlier in the day
00:15 and it is a little bit of a weak day of trade for this counter. Let's talk about
00:21 the earnings though Smriti, what stood out to you? Good morning Alex. We saw
00:25 revenue going up but clearly operational profit went down,
00:31 margins contracted, net profit also went down. So even though they did well on the
00:35 revenue front it rose about six percent but after that maybe the expenses went
00:41 up and because of that there was an the operational profitability went down
00:46 about three percent to 199 crore margin at 31 percent versus 34 percent and net
00:53 profit down about twelve and a half percent. So that's where we stand and
00:56 they also made a strategic partnership a couple of months ago with Foot Locker.
01:01 However that will come into play and contribute to the top line later but not
01:06 this quarter results but there is a good a decent outlook that brokerages have
01:13 come out with and on that note I will go to Sneha on this. Good morning Sneha and
01:19 Vaishali. Metro Brands, Sneha fundamentally what kind of trajectory do you see for
01:25 the longer term for this one? Okay, very good morning. So from longer term
01:32 perspective we believe that the company is likely to do well. It was expected
01:37 that the numbers would be a little weak given the like you know the
01:43 spending. So over the last few quarters spending has been a little weak and it
01:49 is expected to probably continue over next one to two quarters. But then when we talk
01:54 about the long-term trajectory definitely the company is expected to do
01:58 well because it has been showing industry-leading growth which has largely
02:04 been supported by very steady footprint expansion. So that should continue for
02:09 the company. Though we might see some sort of moderation in these same store
02:14 sales growth over the in the near term we believe that we can expect like you
02:19 know a secular 20% kind of growth over next five years and this should be
02:24 largely driven by the wide strong execution, very good store economics that
02:30 we have seen in the past and a huge runway of footprint additions. And moreover
02:36 it generates very strong operating cash flow which should actually like you know
02:40 support its store addition drive and the new brand additions. Moreover the
02:47 recent acquisition that the company has made that is a fill and foot logger so
02:51 that would further accelerate the growth for the company and this is not
02:56 currently captured in the valuations. So we believe there's a large scope of value
03:01 addition that can come from these two brands and it has a huge potential to
03:06 add to its overall earnings over the next few years. Understood. All right it's
03:11 time then to start with the viewer questions and there are quite a few that
03:15 are already flowing in. Once more if you've got a question you can send them
03:19 to us on send it to us on the whatsapp number. Just make sure you tell us what
03:23 your name is and ideally where you're also tuning in from. We've got the first
03:27 question coming in from Subhas and he's asking I think it's an interesting
03:33 question. For the next 10 years prospects in spaces like artificial intelligence as
03:39 well as electric vehicles. Generative AI is a theme that is playing out in other
03:44 markets but there are companies here in India that are engaged in facilitating
03:50 the growth of that business in other geographies and I would think there are
03:54 quite a few IT companies here as well that are engaged in that activity. The
04:00 question is which one should you focus in on and I will come to you therefore
04:03 Sneha to tell us which stocks you like in the space. Okay so for artificial
04:13 intelligence see I believe almost like you know many IT companies are making
04:19 like you know a steady investment towards making a to make a progress
04:24 towards the artificial intelligence and I would say we can look at the signed
04:29 because the company has been continuously investing to enhance its
04:36 overall offering and recently it has made various strategic restructuring
04:43 efforts so the company has a well-balanced portfolio and with the
04:47 improving of the portfolio that the company has an offering so it would be a
04:53 good bet to look at from the IT space. Now if we talk about the EV space and
05:00 Tata Motors is one name which I can really bet on because Tata Motors has
05:05 been like you know it has been the front leader in terms of the new launches in
05:12 the EV category and now with all the other segments also doing well for Tata
05:17 Motors be it JLR, be it the domestic or the CV part so all the verticals are doing
05:24 really well for Tata Motors so there's a huge scope for the stock to move
05:31 another next leg of a rally which can be seen in Tata Motors. Right next up we're
05:37 talking about global spirits now we have a question from Kirti from Hyderabad and
05:41 they say they have already bought in the share at 942 level so slightly elevated
05:46 there. Vaishali the time horizon here is six months what would you suggest doing
05:51 holding on to it or get out of the stock at this juncture? So I would say actually
05:57 the stock right from 1300-1400 levels has come down to so low of around 825 so I
06:05 would say well 780 would act as a support because it has only been
06:08 consolidating so I don't think it should be in a hurry to be you know selling off
06:14 the stock wait for a bounce back to come in because I think if the bounce back
06:18 sets in I think this stock is ready for a target of 935-950. At these levels one
06:23 can have a relook as to how it's progressing but for now at least 950
06:27 should be the target that one should look for. Alright so that's a view on
06:31 global spirits I'm not sure Sneha if you're gonna have a view on this I'm
06:35 gonna try anyway Kartik from Vishakhapatnam is asking about a counter
06:39 called Digidrive distributors and I've just done a cursory search of this it is
06:45 essentially the demerged entity from Saregama and this is something that took
06:50 place I think sometime last year it is the e-commerce spin-off of Saregama even
06:56 if you have you don't have specific coverage the question essentially is
07:00 that we've got the viewer Kartik who has a few shares and it's hitting lower
07:05 circuit consistently what should they do should they try and exit as in when the
07:10 opportunity presents itself? Okay we really don't have any view on it but I
07:19 mean like you know if we talk about this
07:24 there's a very evolving kind of space where a lot of risk is still there
07:30 there's I mean not much clarity as to how it would really take place. So like you know from a
07:39 retail perspective I would like for retail investors it's really better to
07:43 stay away from such counters and let the business take at least like you know
07:50 it should come to a steady stage wherein the retail investor should
07:55 actually really step in. So from the current perspective I would actually
07:59 suggest him to exit. Okay Vaishali any help here or advice that you can give
08:05 for a stock that is consistently hitting circuits on the lower side? So I would
08:10 say actually well both in sync Saregama and this particular stock they have been
08:14 a disappointment because Saregama also I mean you've seen that it's stock has not
08:19 really participated at all we were hopeful that this will get into a
08:23 momentum and we were seeing some signs of positive move but I think it's been a
08:28 laggard and I think stocks to be avoided for now. All right next up we're talking
08:33 about Gujarat Gas. Now Hetav has bought these shares 20 years ago and
08:39 they're still invested in those shares. So what would be your advice Sneha what
08:44 should they do Gujarat Gas they've been holding these shares for the last 20
08:47 years? Okay so Gujarat Gas can be really held on because if you see the
08:55 propane prices have actually risen a little in Middle East and this should be
09:01 a positive for the Gujarat Gas because obviously that would lead to shift
09:06 in the so that would lead to shift towards the natural gas and from the
09:12 industrial side so the industrial demand or would pick up so that should be
09:17 positive and moreover the valuations are really attractive at this point in time
09:22 so Gujarat Gas can definitely be held on from the next at least one to two
09:27 years perspective. Okay we've got Devang from Ahmedabad that's tuning in and
09:33 asking about a couple of counters he's got Jupiter Wagon which he's seeking a
09:39 long term as well as short term view on he's got 250 shares which he's bought at
09:44 levels of 267 so he's making an upside so first Vaishali let me come
09:50 across to you on the charts and ask you what's your view on this particular
09:53 counter would you hold for the long term? I definitely as a matter of coincidence
09:57 I have just recommended once again as a momentum trade to my clients right now
10:02 so while I'm talking to you this stock has got decent volume and I think like
10:06 all real stocks doing well this is one of the counters which is ready for a
10:09 breakout so about 405 even for a short term perspective I would look for a
10:14 target of around 420 so if he has bought this stock well continue holding with a
10:20 trailing stop-loss because above 405 is going to gather more strength for higher
10:25 targets so well that would be my view for a short term perspective let's see
10:29 how it goes because overall I'm seeing a good uptrend continuing even on the
10:33 longer term chart period so I think 420, 450 would be the next triggers that one
10:38 should look for. Okay so that's the view on the technical there is still potential
10:42 upside and indeed the stock is up as much as 4% today but let's also get a
10:46 fundamental view Sneha the entire wagons pack the railway pack has been it's not
10:53 a new focus right it's been gaining ground for quite a while fundamentally
10:57 is it still a strong hold and a buy even at these levels? Yes definitely because
11:05 there's a lot of steam left I mean like you know even post the sharp run-up that
11:10 we have seen in the rail stocks some
11:14 I think we might just be having a little bit of an issue with Vaishali's line
11:19 Vaishali if you're back I will try again Vaishali you were talking about Jupiter
11:24 wagons sorry not Vaishali, Sneha you were talking about Jupiter wagons. Can you
11:31 hear me? Yes I can hear you
11:38 please go ahead. Yes so I was as I was saying so there's a lot of steam still
11:47 left in the railway stocks and one can still find few counters where in the
11:51 valuation comfort is there. Now if we talk about Jupiter wagons so the company
11:56 has been making a lot of on enhancing its capacity and there's a lot of demand
12:03 which is being thrown up on the wagon side so with the kind of strong orders
12:11 that are being rolled out by the government be it to Andhra Bharat or be it
12:15 Amrit train so there's a lot of potential and that the company is tapping
12:22 through a lot of capacity addition even its break business is also doing
12:28 really well so we are expected to see very high execution on that front in FY25
12:35 so net net like you know the potential is huge and the company is meeting it
12:41 through its through its substantial capacity addition so the stock should
12:46 really do well at least for next few years. So it's a hold both in the
12:50 fundamentals as well on the technicals on Jupiter wagons. We have to slip in a
12:54 very quick break there's more on the other side so do stay tuned.
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18:35 term perspective I would say start accumulating from here on the other stock that you mentioned
18:40 is IndusInd. So IndusInd I would say the long term trend has been pretty strong and after the
18:47 result that corrective move that it has shown I would say right now it has come towards the
18:51 support levels of 1560 to 1540 this is the level that one should watch and probably buy because
18:59 below 1540 this can get further weak. So I would say buy for the stop loss below 1540. Okay Sneha
19:08 quick view on NTPC we're running out of time so I'd like to take a few more questions if possible.
19:13 We've got Tarun who is looking to buy this at this current level for the next two years.
19:19 How does it look on the fundamentals? Okay so NTPC definitely one can buy at the current levels I
19:26 mean the energy demand is a really point I mean it's at record highs and going ahead with the
19:33 accelerating capex that is expected over the next few years the demand from the industrial side
19:40 would further accelerate so definitely like you know it's a very next few years would be really
19:48 good for the energy companies and moreover the companies are making a shift towards the I mean
19:54 they're making a higher investment towards the renewable energy wherein the government has set
19:59 a big targets till FY20. So even that would fuel growth for the company so net one should really
20:08 be invested in at least one of the power utility stocks from next few years perspective. All right
20:15 next up we have a question from GC Prakash they're talking about two railway stock that's
20:19 RVNL and IRFC now RV bought both the stocks at very low levels RVNL at 27 and IRFC at 36.
20:28 They have a long-term view on this but the specific question is when should they think of
20:32 selling these two stocks? So Sneha what would you suggest if they want to take some money off the
20:38 table? Okay in case of RVNL one can still stay invested because the valuation still looks so
20:48 pretty like you know fair so and given the kind of order book that they have built up so the
20:55 revenue visibility is quite strong but in case of IRFC the valuation has become a little expensive
21:01 post this sharp run-up so I would suggest booking profit at current levels and probably entering a
21:08 little later when the valuations get a little comfortable. We have another viewer who wants
21:16 to know short-term view on IRFC as well so Vaishali tell us how does IRFC look on the charts?
21:21 Well it looks very strong but I would say it's highly overbought so I would say partial profit
21:28 booking I mean I'm looking at a target of 170 but we are not so far so keep it railing stock loss
21:33 if you want to maximize your profit but otherwise partial profit booking should not be ruled out
21:38 because very very run up in all time period it can see a dip from here on. Let me clarify this
21:43 is Mr. Bandyopadhyay and he's looking he's bought at levels of 98 he's got a hundred shares so when
21:49 you say trailing stop losses what can you give as levels and I would I'm guessing that the view
21:54 stays because he's making a double doubler right now I think no where's the price right now not
21:59 double yeah. Yes so the trailing stop loss would be today's low that is 149 and for a projected
22:05 target of 170 so yes not looking at much of an upside from here on. Okay fair point we've got
22:10 Karan Talwar who's asking about Alok Industries and he's bought at levels of 34. Sneha any view
22:19 on this particular counter it is up and about today it's up as much as three percent and it's
22:25 not too far away from the buy price. Okay I don't cover the stock so won't be able to share them.
22:32 Vaishali I'll come back to you if you can share a view on the technicals what would you advise
22:39 the viewer to do bought at levels of 34 1200 shares. I would say hold on now that he's holding
22:45 on keep a stop loss of around 29 because as such the stock is pretty much intact the trend is quite
22:51 intact and this is just a retracement for now that I would say so if the stock closes below 29 then I
22:58 would say that yes the strength is weakening but till then I would say that yes it's ready for
23:02 further up move and it can go to 34 again and probably go to higher levels also. All right
23:09 next up we're talking about Inox India that got listed a month ago and this one's from Paramjeet
23:15 they want to they bought the shares okay yeah this is for the longer term we're not sure if they've
23:21 bought it or not but should they buy at current levels and if they've bought it should they
23:25 continue holding it. Sneha yeah this one's for you. Okay so Inox India definitely like you know
23:32 one can hold on because the company is a leading supplier in the cyrogenic equipment and they are
23:40 like one of the largest suppliers and one of the few supplies and the solution is basically like
23:46 you know this equipment is basically required on the clean energy space so the clean energy is a
23:53 like you know evolving space and a lot of investment is happening on that side and when
23:59 you're a leading supplier for such equipment and with the market being a little concentrated market
24:05 so there's a lot of opportunity which is there the company has got a good diversified customer base
24:11 and the balance sheet is very clean the overall past financials has been quite steady so one can
24:19 definitely hold on from a one to two year perspective. All right thanks so much for that
24:24 view Sneha and Vaishali as well thank you so much for joining in and for answering all the questions
24:28 that you did we're completely out of time on this particular edition of Ask Profit from Sruti and
24:32 myself the team that put the show together thank you so much for watching have a great weekend
24:36 and do stay tuned lots more coming up on NDTV Profit.
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