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- Axis Bank in focus post Q3 results
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- Axis Bank in focus post Q3 results
Get all your stock-related queries answered by our technical and fundamental guests with Alex Mathew and Smriti Chaudhary on Ask Profit. #NDTVProfitLive
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00:00 It was so terrible that would justify a 6% fall.
00:03 Right. It does look like net profit didn't meet marginally just by a slight,
00:09 it was a slight miss on estimates. So net profit rose 3.7% year on year to 6071 crore.
00:17 Even the core income, that is the net interest income was up 9%. So quite a considerable jump
00:24 there as well. And however, the operating expenses weighed on net profits. If you look at operating
00:31 expenses that were up 32% this year, and a part of that was on account of integration with Citigroup
00:39 India. So it seems like it's a one time or a short term kind of a cost. But overall, it seems like an
00:46 okay performance, not bad, not at least not as bad as our markets have reacted. But let's get in our
00:52 guest and get his view as well. We have Saurabh Jain. Saurabh on Axis Bank, looking at the results,
00:58 looks quite decent, but markets are reacting very sharply to this. Could you tell us a little bit
01:06 more about why that is happening? Hi, good morning. I think there is a lot of pessimism in
01:11 the markets. We are seeing mixed set of numbers coming from all the sectors, for example, IT,
01:16 banking, the way the HDFC disappointed, I think that is coming to the investors mind.
01:21 Slight disappointment is leading to a huge fall. I think some kind of sanity should revert back in
01:27 the market. I think it is the opportunity for the long term investor to chip in because they are
01:32 actually getting Axis Bank at a 5%, 6% discount. I mean, from this kind of a selling is actually a
01:40 good opportunity for the long term investors. Overall, the numbers were cool. They were good.
01:45 And I think the positive surprises may are on the anvil because of the credit disbursement,
01:52 which usually happen in the March quarter. I think March quarter numbers will be much better.
01:56 All right. Let us jump into the questions now. The first one is from Vaibhav Kohli. He is writing
02:02 to us on YouTube. He is talking about IRFC. It is such a 52-week high today and he wants to know
02:09 if he should wait before buying this stock. Do you see value in the stock, Saurabh? And I will
02:15 take a short term view on this as well. See, you do not find merit in buying the
02:20 IRFC considering the valuation at which it is trading. I mean, it is a good company,
02:26 growing at a good growth, at a good pace. But at the same time, the price which you are paying is
02:31 too, I think on the valuation side, it is too pricey. So, in my sense, I think it is better to
02:36 avoid. And Swati, what would you suggest for the shorter term? Should they wait before buying into
02:42 the stock? Yes, we have seen a very good rally from almost 100 levels to 192 levels that the
02:48 stock has given a steep rally. From that level, we cannot deny the profit booking. I believe one
02:53 can buy at the current market price, but one should wait for any dips towards to 120 to 130
02:58 level. That will be a good opportunity to take a buy one because the risk reward ratio is not
03:02 fitable at the CMP. But those who do not want to miss this kind of a rally, at least take a 20 to
03:07 30 percent mine position at the CMP and wait for any dips towards to 130 level. I believe the stock
03:13 is on the formation of the flat pattern and once it manages to give a breakout of 175 levels on
03:18 the higher side, the stock is likely to climb the rally up to 240 to 250 levels. So, it is a buy,
03:24 but buy on the dip strategy should be implied in this particular account.
03:28 Okay. Now, I am asking this, Saurabh, with the hope that you have a view on this. Mohit from
03:36 Ludhiana has got 2000 shares of Trident Limited, which he bought at levels of 3.9. The stock is
03:43 currently trading at 43.5. So, he is making a considerable amount of money on this one. He has
03:49 got an outlook for the next two years. This is one of those stocks, Saurabh, that has gained quite
03:54 substantially. I am looking at the longer term chart and I see that over the last one year or so,
04:02 it has gained about 30 odd percent, right? So, do you have specific coverage? If so,
04:07 what should he do? Should he keep this money invested or should he take some money off the
04:11 table? NB Fortune seems to be changing for the textile industry. Markets are rising in that
04:20 exactly. The stock has already witnessed strong re-rating. I think if you have a two-year kind of
04:25 view, then you can surely hold this company and this stock. I think the numbers will improve
04:32 going forward. But since you are making so much gains, I think a lot of rally has already been
04:37 there in a short span. So, it is better to take some money off the table and be long with the
04:43 rest. Understood. Swati, I will come to you very quickly then. If the view is to take some money
04:48 off the table, what is a good selling opportunity according to you? What are the key levels to watch
04:53 out for? I think the overall chart setup is really positive looking towards the monthly formation. I
04:59 believe that the stock has a potential to reach up to 60 to 65 levels. On a monthly basis as such,
05:05 I am witnessing that 35 levels is acting as a very strong, crucial support level. So,
05:10 by keeping a 35 rupees as a profit stock plus, he can carry the long position but
05:15 inject out of 60 to 65 levels on high side. All right. Next up, we are talking about
05:21 Nuvama Wealth. This one is from Amit and he wants a longer term view on this and he wants to know
05:28 the buying levels. Saurabh, could you give us buying levels on this one? It is on a downtick
05:34 today, down about half a percent at this juncture. Would not be able to give buying levels. I think
05:39 it is better to take a see technical view. Overall, fundamentally, how do you see the stock
05:46 going? I am saying this because it is a recent listing, not a lot of data on the technical front
05:52 there. Yeah, I mean, it is not in coverage. I think it is better to wait for a quarter to
05:56 or quarter to how the earnings will plan out and how the, what the management is guiding.
06:01 So, then only I think we can make view. So, as of now, it is not in coverage. So,
06:06 so, then let me ask you this Saurabh, on the fundamentals, those plays that are related to
06:13 the capital markets and we have seen quite a few of them run up very substantially, not least of
06:20 which you have seen the BSE itself that has gone up from strength to strength. You have the likes
06:25 of Angel One, you have a few other stocks as well. CAMS, I guess, is another play. What according to
06:30 you is the best way to play this capital market theme? I think this is the place where a lot of
06:36 turnover is happening, a lot of growth is happening, but at the same time, the competition also
06:41 coming up, which is leading to contraction in the margins. If you look at the angel numbers,
06:45 we saw the contraction in the operating profit margin and the management is saying that they
06:50 will be able to overcome those. I do not think so. And I think this is the space which is overly
06:56 high. Look at the valuation, say, of the BSE Angel. They are on the higher side. I mean,
07:03 we have not seen such kind of valuation in a long span. So, I think if you are betting on this space,
07:09 I think you should have a very long view, say, three to five years. And the market corrections
07:14 are looking in 2024, it looks that market will see a good amount of correction, considering the fact
07:21 that we have seen long run up in the small and mid cap stock. And if that happens, I think we may
07:27 see derating in the valuation of these companies. Okay, fair point. I am coming back to you. And
07:32 again, I am hopeful that you have a view on this one, because it is a question that is being asked
07:38 about an INVIT. This is Power Grid Infrastructure Trust. And the question is coming from Sunil
07:45 Taneja. He says that he is a pensioner and he has bought at levels of 121. He has invested
07:52 4 lakh rupees, I guess, with the expectation of receiving regular income, because that,
07:59 I would assume is a theme that you play with regard to REITs as well as INVITs,
08:06 right, fractional ownership. So, do you have a view, Saurabh, on this one?
08:10 I think largely, usually people buy these INVITs with a view of fixed income type gains. And there
08:18 is also some tax incentives in these types of incomes. So, largely, it is a good company. I
08:24 mean, the parentage is Power Grid only and this INVIT is good enough. I mean, there is no problem
08:30 with this INVIT and the income is likely to grow. And if the asset prices do go up, then we may see
08:37 the market price of the INVIT going up. So, I think he can remain invested.
08:42 So, a quick clarification here, Saurabh. If you are not getting that capital appreciation,
08:48 it is not something to be too worried about or bothered by, right, because you are ultimately
08:53 looking for the regular income. Yeah, I mean, the capital appreciation is actually icing on the cake.
08:58 Sure. All right. Next up, we are talking about two stocks. This one is from Subha Reddy and
09:04 we are talking about SPI that they have bought at 650, which is higher than the current price,
09:10 and NUGEN at 840 levels. Swati, for the shorter term view, would you suggest holding on to both
09:16 of these stocks? See, SPI is definitely one of the very good counter and one should be holding
09:22 into their portfolio. If he is looking for a longer term horizon for the one to two years,
09:27 definitely this counter is likely to perform and will test the feet up for 700 to 800 levels
09:33 target I am looking for. So, SPI can be hold at the current market price as well. If you are
09:38 getting any downturn towards the 570 to 550 levels, one can add on so that the average price will come
09:44 down and I am looking for a target of 750 to 800 levels on high side. Talking about the NUGEN,
09:49 this particular stock is as of now very placed above all the important moving averages,
09:53 whatever we look on the technical front that is 1500 and 200 DMA. As long as it is hold 800 levels
10:00 on the downside, definitely one should hold their long positions. So, by keeping a stock
10:04 list of 800 rupees, I am looking for a target of at least 840 to 850 levels for a short term.
10:09 Got it. I do want to get a quick view on SPI from Saurabh as well. A lot has been said about
10:16 the banking pack. In fact, you saw significant selling in the counter yesterday. Not really
10:22 any specific trigger on SPI, but I think the entire banking pack was being sold into.
10:27 So, if I look at the one-year chart, it has not gone anywhere. And so, therefore,
10:31 from that perspective, based on the expectation of the growth that you are seeing in the lending book
10:37 and the prospects for FY25 as well as you look forward, would you buy this counter right now?
10:42 I do not think so. If you look at the ASPI, it is clearly underperformed both NIFTY, BAN NIFTY and
10:49 PSU Bank Index also. I think the market is of the opinion that the numbers will be muted this time.
10:55 I think it is better to wait for the December quarter, the numbers and then make an opinion.
10:59 In the PSU basket, the stocks which we like are Union Bank and the Canto.
11:03 Fair point. So, aggressive view based on the technicals, but hold your horses based on the
11:11 fundamentals is what Saurabh is saying on SBI. We will see soon enough though, the numbers are
11:17 not too far away. Let us talk about a scheme by the government or a program by the government
11:24 that will likely lead to a lot of beneficiaries on the corporate side, on the manufacturing side
11:30 and on the design side. I am talking about the Kavach program of the government, right.
11:34 There was of course an unfortunate incident last year that led to the government pushing
11:39 the Kavach program. Geeta is wondering which stocks stand to benefit and I think we have had
11:44 a little time to understand this scheme and what it entails. Saurabh, any view about stocks that
11:51 will stand to benefit from this program? Did not really see in this scheme.
11:57 Okay. So, then let me broaden this. The Kavach scheme of course is aimed at the safety of
12:06 the railways, right, and to prevent accidents and to ensure that things go in order. So,
12:12 let me broaden this then. Beyond the Kavach scheme, talking about railways, you saw some of
12:17 those stocks take a bit of a beating yesterday. But remember, a lot of these stocks have gained
12:21 very substantially over the last year or so, which according to you, Saurabh, is the one to bet on?
12:26 I think when these types of schemes are on the anvil, I think markets always tries to,
12:32 you know, capture in that prices and we have already seen that. I think when the, it is like
12:38 when the metro is announced, property prices goes up and when the metro comes, property price
12:43 actually, you know, do not go up and may even come off. It is like in the stock market also. So,
12:50 I do not think so. I do not feel so there is any kind of a juice left in those spaces.
12:55 All right. Let us shift focus to Avas Financers. This one is from Sid and he wants a longer term
13:02 view on this. Now, in the last one year, the stock has lost 18%. For the longer term,
13:09 Saurabh, how does it look Avas Financiers? I think on the finance, on the NBFCs, I think
13:17 there will be a pressure on the net interest margin and this is a very small company and I think the
13:23 valuations are on the higher side. It is better to look how the numbers man out for the December
13:30 quarter and what the management guides. Then only I think it is better to decide. Otherwise, there is
13:34 a lot of competition coming in this space. So, my sense it is better to avoid as of now.
13:39 Avoid is a call on Avas Financiers. We have to slip into a very quick break.
13:44 Viewers, we will be back on the other side to take more queries. So, do stay tuned.
13:48 Thank you.
14:00 Thank you.
14:14 Thank you.
14:27 Thank you.
14:41 Thank you.
14:55 Thank you.
15:09 Thank you.
15:23 Thank you.
15:37 Thank you.
15:50 Thank you.
16:19 Welcome back. You are watching Ask Profit. And before we continue the show, I would like to
16:24 remind you that you can write to us on any of our social media channels or on the WhatsApp number
16:29 that is flashing on your screen or will flash on your screen in a couple of minutes or you can
16:33 write to us on the YouTube live chat as well. Now, let us talk about Divi's Labs. This one is from
16:40 Babu and they say they bought the stock 25 years ago and they have been holding on to it since
16:46 then. So, now the purchase price is now negligible at this point. He wants to know the longer term
16:53 view on this. Sourabh, now we have seen a little bit of weakness in Divi's Labs. But for a longer
16:58 term, would you suggest holding on to this one? I think a lot of activity is happening in the
17:04 pharma space. I think we saw several numbers and the other companies coming up with the numbers.
17:08 I think Divi's is a company which can do well for the long term since it has invested for the last
17:13 25 years. In my opinion, I think it should stay invested because the competition in the
17:18 medical market is also going down. I think there is a scarcity of some kind of medicines also.
17:26 The company is in the APIs intermediaries and generics and I think it is likely to do well. So,
17:31 my sense is that it is better to stay invested. Right, fair enough. All right, that's the view
17:38 on Divi's. And by the way, in case you are wondering, the buy price was
17:41 likely in the single digits. If it is the maximum time frame, which is around the early 2000s,
17:48 it is around 9 rupees or thereabouts that Babu probably acquired it at. Tata LXC is the next
17:55 counter that we are looking at. Swati, this question is for you. Rinesh is asking, he has bought
18:00 7 shares at a price of about 6000 rupees and he is looking for a view for the next 6 months.
18:08 What would you say that he should do? See, as of now, the stock is under correction mode. We
18:13 have seen that in the last 5 to 4 previous trading sessions, the stock has given the breakdown of 20
18:18 days moving out and from there onwards, one side we are witnessing a fall. I believe this fall is
18:24 likely to be extended towards to 7500 to 7600 levels up to that level we can witness a fall
18:30 and there onwards we can see some sort of a reversal which might again take a stance towards
18:35 to 8400 to 8500 levels on a downside. So, as of now, for a very short term perspective,
18:39 the view is little bit cautious. I believe that the stock will take a support nearby 7600 to 7500.
18:46 There onwards, we will witness some sort of a pullback rally towards to 8500 will be my first
18:51 target and from there onwards 9000 levels can be tested. So, the overall view is for the current
18:56 period is little bit cautious, but for a longer term horizon, definitely it is a positive and we
19:00 can witness some sort of a buying in this particular stock on every dips. Alright, next up we have a
19:06 question from Raghunandan from Tamil Nadu and he wants to know what stocks he should buy. So,
19:12 Swati, based on the texture of the market today, what stocks do you have a buy call on?
19:17 Yeah, I would like to give a buy call on two buy calls at the current level. Sun Pharma is really
19:24 looks good on the technical front. This particular counter is just really doing very well and in the
19:30 yesterday's market also we have seen a very good bounce back rally. It will act as a defensive
19:35 counter. Currently, the stock is trading at 1380 levels. No wonder it is trading at the high level,
19:39 but at least 20-30% can be taken a buy call at the CMP and any dips to come towards to 1320,
19:46 I believe it will be a good enough portion to take a buy call. Downside, it has a very good support
19:50 at around 1250 levels. So, one can hold a long position and looking for a target of 1600 to 1700
19:57 levels on the high side. Another counter is that is the Indus Tower. This particular stock is also
20:02 really doing very well. In this kind of a market on the monthly chart, the stock has given the
20:08 cup and handle formations breakout and for non-stop it is really doing very well from 210 levels.
20:14 At the current market price, one can also take a long position, 231 is the current CMP,
20:19 210 is the immediate support level. So, one can keep a stock price of 210 and take a buy call
20:25 for immediate target of 272-280 levels on the high side. Got it. So, Senthil is asking this
20:31 next question and look, I think it is important to address this as well. He is asking about penny
20:39 stocks. A few of these names have done incredibly well and I guess to a certain extent that is
20:46 driving the appetite for them, but it is a dangerous game to play. Suzlon, for example,
20:53 made a tremendous recovery and if you think about it, Vodafone Idea has also made a tremendous
20:58 recovery from the low point, right? But can you very quickly in 30 seconds explain why
21:03 it is not necessarily a winning game? I think it is largely the gains in the penny stocks comes
21:10 when there is a dash of liquidity chasing markets. A lot of money is coming to the riskier assets and
21:16 there is a huge volatility in small companies' business profiles. For example, as you said,
21:22 Suzlon, I think there is some kind of a change in the operation metrics. I think companies are
21:27 improving their financials, the debt got restructured, the business prospects are improving
21:34 and that is why we saw the stock related. But on the other side, Vodafone Idea, I don't think so
21:39 fortune can ever change for this company. The balance sheet is too heavy, the debt is too high
21:43 and the company is making less money and they are losing its customers. So, I think it is a very
21:49 difficult game to play. It only looks rosy at the screen, but when you jump into, you can lose all
21:54 your money. Fair point, because while the gains might be substantial, just a 20 percent or a 30
22:01 percent drop would mean that a lot of your gains are wiped out, right? Let us talk about South
22:06 Indian Bank then because Senthil is asking about a specific view, Swati, on South Indian Bank for
22:11 less than a year. Would you suggest a fresh entry at this price? See, already the bank has given a
22:17 very good rally from 26 to 33 levels. I would not suggest to take a buy call at the current market
22:22 price, but definitely it is one of the very good stock which can perform very well in the future
22:27 as well. If you are getting any dips towards to between 30 to 28 level, one can take a long
22:32 position because at that level, the risk reward will be a favorable. Downside 24 level is acting
22:37 as a very strong support level. So, one can take a long position any dips towards between the range
22:42 of 28 to 30 and looking for a target of 45 to 50 levels on high side. All right. Next up, we have
22:49 a question on IDFC First Bank by V. Srinivaslu. I hope I am saying that correctly. They bought the
22:56 stock at 87, which is higher than the current price. Saurav, would you suggest holding on to this one?
23:04 I think if you are there for the long term, it is a hold. Otherwise, there is a good amount of
23:10 correction can come in these stocks because the stock has already got re-radied in the last one.
23:15 So, you have to stay put for long. Okay. All right. Thanks, Saurav, for that view and indeed
23:20 for answering all the questions that you did. Swati as well, thank you for joining us on this
23:24 program. Viewers, if we were not able to answer your specific question at the very least,
23:30 hopefully, the answers that were given to the other questions have benefited you in some way.
23:35 A few of you, I have promised that I will take your question tomorrow. Remember, we are back
23:40 tomorrow at 11.30 and we will take all of your questions live. That's the end of this particular
23:44 program from Smriti and myself and the team that put the show together. Thank you so much for
23:48 watching. Do stay tuned, lots more coming up on NDTV Profit.
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