- #NBCC gains as stock trades in high volumes on the back of strong order inflow
- What does #ApolloPipes' short term outlook look like?
Agam Vakil brings you the bulk and block deal highlights of the day on 'Large Trades'. #NDTVProfitLive
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- What does #ApolloPipes' short term outlook look like?
Agam Vakil brings you the bulk and 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
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TVTranscript
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01:13 - Nifty Sensex off days highs,
01:36 but market stage rebound after trading
01:38 in the red earlier this week.
01:41 (upbeat music)
01:43 Nifty metal and financial services lead the rally
01:46 in today's day of trade.
01:48 The Nifty media emerge as the top losing sector.
01:51 (upbeat music)
01:54 - The number of people who-
01:56 - IPO market is a market also a market of traders
02:01 and not just investors says Seve chief Madhvi Puri
02:07 adds that about 43% of retail IPO investors
02:11 flip within the first week.
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02:15 More earnings on our radar today,
02:18 Reliance Industries,
02:20 in the Starn Unilever and Ultra Tech Cement
02:22 are expected to come up with their December quarter earnings.
02:25 (upbeat music)
02:28 Today on NDTV Profit,
02:31 we get you the top voices from the World Economic Forum,
02:34 Davos where top economists and corporations
02:37 are speaking about the changing landscape
02:40 of business world and global economy.
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02:46 Hello and welcome, this is Last Trades.
03:03 I am Adhvan Vaquil and in this show,
03:05 we take you through all the stocks
03:07 which are buzzing in trade,
03:08 largely on account of volumes,
03:10 bulk trades and block deals.
03:14 But at the moment,
03:15 let's start by taking a look at how things are panning out
03:18 in terms of markets.
03:19 And we're looking at some amount of green for now,
03:22 but not the kind of green that you'd expect
03:27 in a session of short covering.
03:30 What we are seeing is gains all the same
03:32 for the Nifty advancing by around 0.6%,
03:35 but the Bank Nifty has now gone into the red again.
03:40 And that is a little bit of a problem,
03:43 especially given that we were expecting
03:46 a little bit of a rebound
03:47 that really hasn't come through.
03:49 And in fact, we have wiped out all the gains
03:52 through the course of the day.
03:54 And we are now sitting marginally in the red.
03:57 I reckon to a certain extent,
03:59 the weakness will also be on account
04:01 of several large cap banks.
04:04 I wanna pull up the Bank Nifty constituents
04:08 and see where in fact we are seeing weakness there,
04:11 because we are seeing a lot of weakness
04:14 in IndusInd Bank now.
04:16 Kotak Mahindra Bank is also under a tad bit of pressure,
04:20 along with something like HDFC Bank,
04:23 which continues to remain in the red at the moment
04:26 with the kind of traction that we are seeing
04:28 as far as markets are concerned.
04:30 Besides that, even in terms of the broader markets,
04:33 we're not seeing too much going on.
04:35 And we are looking at a lot of volatility
04:39 which has returned to the markets for now.
04:42 Of course, we continue to keep an eye on the benchmarks,
04:47 but even in terms of the broader markets,
04:49 we have gains in something like an IRFC,
04:53 which continues to move up higher and higher.
04:55 And so it gained another 9% in today's trade,
04:59 trading at near life highs.
05:02 And of course, Gujarat Florachem is the other one,
05:04 which is up around 5.5%, along with REC,
05:07 which is up around 5.3% as well.
05:10 So we have some gains coming in there.
05:12 But that said, let's take a look at all the stocks
05:16 that we wanna address in today's day of trade.
05:20 So we're gonna talk about Apollo Pipes.
05:23 We are going to address Aarti Industries.
05:26 And besides that, we're also going to talk about NBCC
05:29 and Metro Brands, both of them,
05:32 which are in focus in today's day of trade.
05:34 We start off with Apollo Pipes,
05:37 which has seen a surge in volumes.
05:39 And along with that,
05:41 we've also seen a sharp up move coming through.
05:43 And we have my colleague Mihika,
05:45 who's joining us to give us an update on the same.
05:47 Mihika, good afternoon.
05:49 - Good afternoon.
05:49 So yes, the stock is up an intraday high of 10.3%
05:54 and it's up 40% in the past year.
05:57 Now volumes were over 9.45 times its 30-day average
06:01 and the total volumes did stand at 5.37 lakhs.
06:04 Additionally, yesterday, BOP Capital Markets
06:08 did initiate a coverage on the stock
06:09 with a whole rating at a price target of 650.
06:13 And in terms of the near-term outlook of the company,
06:16 now the company does plan to grow
06:18 their FY24 sales volume by 30% to 85,000 tons.
06:23 And they've also targeted a revenue growth
06:25 of over 30% cargo in the next four years.
06:29 The company's also planning to double its capacity
06:32 to 286,000 million tons in the next three to four years.
06:35 And they also target a 30% return on the capital employed
06:39 that they will be investing
06:40 with a rupees 350 to 400 crore EBITDA
06:44 in the next three years.
06:45 Now the EBITDA per ton expected is 12,000 to 13,000 per ton
06:50 in the next three to four years.
06:53 And last year's EBITDA was 16,500.
06:56 So now why the drop is simply because
06:58 they will be investing more to double the capacity,
07:01 all the expansion costs that will come with it
07:03 and the ad spends that will come with it.
07:05 - Okay, Mika, thank you so much for getting us those updates
07:09 on, well, Apollo Pipes, of course,
07:12 but we move on and then address
07:14 what's happening at Aarti Industries.
07:16 Now that's the other very swift mover.
07:18 And it's not just on account of one of the broken notes
07:22 which is initiated coverage.
07:23 We're also seeing a sharp surge in volumes.
07:26 Let's get in Varsha to understand
07:28 what's behind the move in Aarti Industries today.
07:31 Varsha.
07:32 - Good afternoon, Agam.
07:33 So as you said, stock is up over 8% in trade today.
07:38 Now this is on the back of MK initiating
07:41 coverage on the stock.
07:42 So it initiate coverage and buy with target price
07:44 of rupees 750.
07:46 Also if you see, MK expects MMA and MEA,
07:50 two of their products to be significantly large
07:53 and scalable products over next few years.
07:56 Also where the cold portfolio, if you see,
07:57 is seeing relatively subdued demand for now,
08:00 but MK believes that it will start delivering
08:02 significant delta to Aarti's overall EBITDA
08:05 in coming few years.
08:07 Also Aarti is poised for structural uptake
08:10 led by benefits of Euro plus one,
08:13 then also the capacity announcement
08:16 by several pairs in nitration has led India
08:19 to be more competitive and Aarti's decision
08:21 not to backward integrate into this commodity
08:24 was right decision as per MK.
08:26 And expansion of existing value chain
08:28 and entering newer value chain will actually aid
08:31 earning momentum for Aarti.
08:33 And next leg of growth will be driven
08:35 by value added products.
08:37 Also entry into downstream products
08:39 will lead to margin expansion.
08:40 But this is not the reason behind Aarti's surge.
08:45 We have seen Aarti's stock price surge
08:47 in last almost 15 to 20 days.
08:50 Now this is on the back of two recent contract
08:53 that Aarti has won.
08:54 So I'll highlight one of them,
08:57 which is a nine year long term supply contract
09:00 worth rupees 3000 crore.
09:02 Now this is for niche agrochemical intermediate.
09:04 Now the problem here is, and MK believes
09:07 that this contract is for an agrochemical product
09:11 called MEA, which is used in an intermediate
09:14 to synthesize herbicide for S-metachlor.
09:17 Now the problem here is,
09:18 there was this recent announcement by EU
09:20 which has banned this product.
09:22 But MK believes that there will be only 8 to 10%
09:27 global demand for this product.
09:29 And it shows insignificant effect on Aarti's numbers.
09:34 - All right.
09:35 Well, there you have it.
09:37 That's the view on Aarti Industries.
09:39 Varsha, thank you so much for getting us that update.
09:41 And well, we continue to keep an eye on that one as well.
09:45 Remember, there's a lot of institutional
09:47 along with fund focus and interest in Aarti Industries.
09:51 But from there on, we move on to another interesting stock
09:54 and that's NBCC, which is also in focus
09:56 in trading on high volumes.
09:58 And largely the insight that we have is on the order inflow.
10:03 Let's get in Anushi to tell us a little more about that.
10:06 Anushi, good afternoon.
10:08 - Afternoon, Agam.
10:09 So as you mentioned, the stock isn't focusing
10:11 about a sharp up move, about 10%.
10:13 This is after a large trade,
10:15 where in about 0.14% of equity changed hands
10:18 in today's trading session.
10:19 If you look at volumes that traded
10:21 at about two times its 30 day average.
10:23 Now I want to shift our focus to NBC's order inflows
10:27 that we have just seen in the Jan month itself.
10:29 In January 24, it recorded an order wins
10:32 of about 694 crores.
10:35 So if you compare, go back to the consolidated order book
10:38 as of November 23, that stands at about 55,300 crore.
10:43 While it has recorded about secured new orders
10:46 worth rupees 7,000 crore
10:48 in the financial year FY24 itself.
10:51 So quite a strong revenue growth visibility,
10:55 because even if we compare the earlier trends
10:57 and look at FY21, 22, 23, the order book now
11:01 as the FY21 order book stood at about 60,000 crore,
11:05 which then went down to about 46,480 and 45,4275.
11:10 So again, now, if you look at the 55,000 crore odd figure,
11:14 it is going back to the FY23 range.
11:17 Even the order inflows has seen a strong growth,
11:20 almost doubling from its FY21 levels
11:24 and the book to bill ratio.
11:26 So the book to bill ratio was about 8.8 times
11:29 in the financial year of 21,
11:31 which then went down to six and then 5.2.
11:33 But now if we annualize the FY, H1 FY24 value,
11:37 we see this number, the 8.8 figure coming back.
11:41 So that should be definitely in radar.
11:43 But what remains as a question is the execution period
11:46 of the orders that the company has followed
11:49 with what kind of more growth we can expect.
11:53 And is this priced into the stock performance?
11:55 Because if you look at the stock performance,
11:57 the stock has surged about 147%
11:59 in the one year time period itself.
12:02 That is on the orders.
12:04 If you look at the revenue CAGR growth of two years
12:07 between the FY21 to 23 period,
12:09 that is about 13.2% of CAGR growth,
12:12 while the EPS growth was at 9.7%.
12:15 So this is all on NBCC India
12:17 that we should be focusing on going forward.
12:19 - Absolutely, there's no doubt about the fact
12:21 that there is a recovery in the order book
12:23 and the price to book ratio, pardon me,
12:27 the book to bill ratio should also see
12:30 an expectation of improvement.
12:33 Well, Anushi, thank you so much for getting us that update.
12:36 And a lot of those are the details
12:38 with respect to the order and flow
12:39 as far as NBCC is concerned.
12:41 And then onto our final large trade in focus today,
12:45 we have Metro Brands.
12:46 This one has also been buzzing on in trade today,
12:49 and this is on a decline that we've seen.
12:52 Now, well, let's get in Mahima to talk to us
12:55 about firstly the earnings,
12:57 but secondly also what could potentially be in store
13:01 for the company,
13:02 what could have potentially gone wrong here.
13:04 Mahima, good afternoon.
13:06 - Good afternoon, Agams.
13:07 As you rightly mentioned,
13:08 the Q3 earnings were announced recently,
13:10 and the earnings were not as per the expectations.
13:14 The revenues were up by 6%.
13:16 However, we saw a sharp decline of 3% in EBITDA,
13:19 and net profit was down by 12%.
13:22 Also, the margins have declined by 3%.
13:25 It was 34% in Q3 FY23,
13:29 versus that of 31% in this quarter.
13:31 So the results have not been up to the mark.
13:34 However, on a positive note,
13:38 they had a strategic partnership
13:39 locked with Foot Locker in this quarter.
13:43 If you talk about the key highlights,
13:44 they've just hit 800 stores overall,
13:47 and in this quarter,
13:49 they could make only 87 more store additions.
13:51 Also, their e-commerce sales have seen a drop
13:55 because they faced issue in terms of new order management
13:58 and warehouse management.
13:59 So this is where I think the sales have also been affected.
14:03 If you talk about the financial trend,
14:05 overall, the trend has also not been very good.
14:08 The revenues have not grown much.
14:09 The EBITDA and profits have also not grown much,
14:12 and the margins have fallen.
14:13 If you talk about the stock performance,
14:15 because of the entire scenario of Q3 results,
14:18 the stock has touched an intraday low of 6% today.
14:21 Also, five days, it was down over 5%, six months.
14:25 However, it has been up over 14%.
14:27 And one year, the stock has nearly seen
14:29 a growth of 39% only.
14:31 And list recommendations also, if we see,
14:34 they're quite mixed.
14:35 Nine say buy, four say hold, and five say sell.
14:38 So overall, the scenario of Metro Brands
14:41 doesn't look very good.
14:42 However, the advent of Fila and Foot Locker
14:45 might be a positive note for them in the coming quarters.
14:49 - Absolutely.
14:50 Mahima, thank you so much for getting us
14:52 that update on Metro Brands.
14:55 So, well, at this point in time,
14:57 while there may be pressure,
14:59 there is always hope that with an improvement
15:02 in operating metrics,
15:04 there could perhaps be an up move
15:06 as far as the stock's concerned as well.
15:08 At one point in time, we all know that
15:10 Metro Brands was priced to perfection.
15:12 And since then, we have seen a little bit
15:14 of a knock coming through.
15:16 But one, for the long term,
15:18 at least that's as far as the management's concerned.
15:21 But that's as far as your large trades go.
15:24 On that note, let's slip into a short break,
15:28 but on the other side, we get you a lot more.
15:30 Stay tuned to NET Profit.
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19:56 - Welcome back to Last Race.
20:03 India's leading tyre manufacturer, SEAT,
20:05 has launched its new tyre range.
20:07 Mahima spoke to the company's MD and CEO,
20:10 Adna Banerjee, on the new launch
20:13 and the demand in tyre sector.
20:15 Listen in.
20:16 - Yeah, so as you know, the two-wheeler tyres,
20:21 the two-wheeler market in India is mostly commuter-driven.
20:24 So it's a whole technology biased tyre.
20:28 And at the top end, there had been a little bit
20:30 of radialization using fabric radial.
20:33 But for these kind of new applications,
20:36 you need tougher tyres, the steel-belted radial.
20:39 So the advent of steel-belt is a completely new technology
20:43 as far as SEAT is concerned.
20:45 And they are meant for very high-performance usage
20:50 on highways as well as off-road.
20:54 - How big is the market and what does the demand look like?
20:58 - So this is a nascent emerging market
21:01 at this point of time with rising affluence
21:04 and better road infrastructure.
21:06 People are doing leisure biking
21:08 as well as adventure biking.
21:09 So cruising and along highways,
21:13 going on those Ladakh expeditions
21:14 are becoming more and more common
21:16 in groups or even solo sometimes.
21:19 So this market today is about,
21:22 let's say 3% of the total market.
21:24 But this is going to increase disproportionately
21:27 as we go forward.
21:29 - Okay, and will this be only for the domestic markets
21:32 or do you also plan to export these tyres?
21:34 - So we have started off making these tyres
21:38 for the domestic market, OEMs, as well as the aftermarket.
21:42 And we are looking at international markets.
21:46 Immediately there are no plans to do so.
21:49 - What is the price range and how is it different
21:51 from the other motorcycle tyres that you're already selling?
21:54 And how does this impact your margins?
21:56 Will it be margin-accurative?
21:58 - Yes, it will be definitely margin-accurative
22:02 in the aftermarket where the margins will come from.
22:07 So an average price of this tyre
22:09 could be about maybe 8 to 10X of a normal tyre.
22:14 And it is definitely margin-accurative.
22:20 And the technology is also completely new.
22:22 We have set up a new facility for this.
22:25 A lot of R&D effort and resources have gone into this.
22:30 So we are pretty bullish about this.
22:32 - And now on to some top voices coming in
22:35 from the World Economic Forum at Davos,
22:38 NDTV's Vishnu Som caught up with Rishad Premji,
22:42 the Executive Chairman at Wipro.
22:44 Listen into a slice of this conversation.
22:46 - AI governance and how we think about AI governance
22:50 is going to be incredibly important.
22:52 The element of accuracy, of safety, of transparency,
22:56 of security is going to be incredibly important.
22:58 One of the things we've set up is an AI governance council,
23:01 which is a cross-functional team.
23:03 Every use case that we put together
23:05 goes through that council.
23:07 It goes through from an individual dimension,
23:08 it goes through from a social dimension,
23:10 it goes through from a technical dimension,
23:12 it goes through from an environmental dimension.
23:14 So we certainly want to make sure
23:15 that the technology is safe.
23:17 The other thing we want to give great comfort to
23:19 is that today we see this as a strong enabler,
23:23 augmenter of capacity, of capabilities,
23:26 a productivity tool for our employee base.
23:28 It is not replacing people,
23:30 it is enhancing the capability of people.
23:32 If you can do your software job with 25% faster,
23:36 there's 25% more you can deliver
23:38 because there's enough software to be built.
23:39 So this is not about job elimination.
23:42 There may be some jobs that it creates more disruption around
23:45 and then it's the focus of companies like ours,
23:48 industries like ours, and the government
23:50 as to how do we skill and upskill people
23:52 so that they become relevant for a skill set
23:54 that is less important tomorrow,
23:55 than it was yesterday.
23:57 That's not a new phenomenon.
23:58 But I think this mindset of leveraging it
24:01 impactfully as an augmentation tool,
24:03 as an enhancer, as an enabler for you,
24:06 is an important change management mindset
24:08 we as an organization, we as an industry,
24:11 I think have to drive as well.
24:12 Right, and as we all know that on January 22nd,
24:18 we have the Prana Pratishtha at the Ram Temple in Ayodhya,
24:22 but the economic opportunities created
24:25 are witnessing no limits across the country.
24:29 We have Sasha Sen reporting from Delhi
24:31 on how the traders are making hay amid these festivities.
24:37 The date for the Prana Pratishtha Puja in Ayodhya nears,
24:42 the excitement around Ram Temple is reaching its crescendo.
24:45 It's not just about religion,
24:47 but business and economy as well.
24:49 While the tourism sector and businesses in Ayodhya
24:53 are expecting a surge in economic activities,
24:56 the opportunities created is not just limited to Ayodhya.
25:00 Delhi traders are also making hay while the sun shines,
25:03 leading to bulk sales of diyas, flags,
25:06 and even miniature models of Ayodhya temples.
25:10 Wholesale traders in the bullion market
25:11 are also claiming there is a high demand
25:14 for silver coins and miniature idols.
25:17 The Confederation of All India Traders body
25:19 in fact has estimated businesses worth Rs 1 lakh crore,
25:24 with Delhi alone generating businesses
25:26 over 20,000 crore in the run-up to the ceremony.
25:29 NDTV Prophet visited markets in Chandni Chowk,
25:32 Retakailash, Khan Market, as well as Karol Bagh,
25:36 and spoke to several traders.
25:38 Listen in what they have to say.
25:40 Particularly the trading community is upbeat
25:44 over organizing various functions, various events,
25:49 and so many other things,
25:51 which has resulted into a generation of business
25:55 to the tune of Rs 1 lakh crore.
25:58 The coins made at the Ram Mandir have high demands.
26:01 5 grams, 10 grams, 20 grams, 50 grams, and 100 grams.
26:05 We have made more than 1,000 to 2,000 kilos of stock.
26:09 In all honesty, Diwali is here.
26:13 Well, that was the voices coming in from the traders in Delhi
26:17 who are rejoicing the spillover effect
26:19 of the business boom in Ayodhya.
26:21 And sales are expected to escalate further from here,
26:25 bringing cheer to the small and medium enterprises,
26:29 with camera person Suraj Singh,
26:31 Sesha Sen for NDTV Prophet.
26:33 And that is all that we have for this edition of Last Trace.
26:38 But don't go anywhere.
26:40 We slip into a break, and on the other side,
26:42 we get you India Markets Close.
26:43 Stay tuned in.
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