- L&T falls over 6% after operating margin misses estimate
- What does this mean for shareholders?
Get all your stock-related queries answered by our technical and fundamental guests with Alex Mathew and Smriti Chaudhary on Ask Profit. #NDTVProfitLive
- What does this mean for shareholders?
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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TVTranscript
00:00 You have seen the numbers, revenue and profit growth seems healthy but a bit of a contraction
00:07 in the margins.
00:08 What would you suggest to our viewers who are holding on to L&T, what should they do
00:12 and is this a good time to get into the stock?
00:16 I think infrastructure capacity building, it is a story which will run for the next
00:20 few quarters.
00:21 I mean, it is a quite long-term story.
00:24 I think markets have shown their disappointment with respect to the profit margin.
00:28 But I feel that it is a short-term correction.
00:32 If you go by the numbers, by the management, I think the order book is growing at a stupendous
00:36 pace.
00:37 It has already surpassed the earlier guidance by the management itself.
00:40 And next year also they are looking at good growth in the order book itself.
00:44 And the execution will also be faster next year after the formation of GURD.
00:48 So I think it is an opportunity for the long-term investor to check in at these corrections.
00:54 And for the long-term investor, I think they must hold for the long term.
00:58 Fair point.
00:59 It is actually interesting.
01:00 We were looking at the longer-term price trends for this particular counter and what you are
01:06 looking at is a 12-month chart.
01:07 So if you look at the last seven results, irrespective of what it has done the day after
01:12 because usually it is posting its results post market hours, in seven instances, that
01:18 is in the last seven earnings cycles, between earnings the stock has gone up.
01:23 So Rajesh, on the charts, how does it look?
01:27 And that is despite, I am saying, taking into account today's drop.
01:31 Yeah, definitely.
01:33 So overall structure is on the bullish side across all time frames.
01:38 Yes, there is some corrective action post numbers.
01:42 But now the stock is holding the ground near to this 50-day moving average.
01:45 So I think if it continues to hold above 3400, I think there won't be any challenge in terms
01:51 of continuation of this uptrend.
01:54 And once the stock manages to cross above 3550, 3580 kind of zone, then I think again
01:59 the stock will resume its uptrend and then possibly we can see furthermore higher level
02:04 in L&T going forward.
02:07 So I think this decline should be used as a buying opportunity in the stock.
02:12 I think 3350, 3360 is a good support area in this down move.
02:20 So if you get any opportunity near to 3450, 3430 kind of zone, it's a good opportunity
02:25 again to re-enter in this stock.
02:28 Overall structure is bullish.
02:29 All right.
02:30 So a buy from Rajesh on L&T.
02:33 Now let's quickly get into the questions.
02:35 The first one's coming from Rajesh and he's talking about SBI.
02:39 He bought the shares at 650, which is higher than the current market price of SBI share.
02:44 Now he wants to know if you should, if he should continue holding on to this one.
02:48 He doesn't, we don't know if this is for the longer term, but Saurabh, tell us about the
02:53 longer term outlook and we'll take a shorter term as well.
02:56 I think there have been quite a misses and hits in the banking pack.
03:00 SBI results will be announced I think in a day or two.
03:03 I think then the things will get much clearer.
03:07 Apparently, it is looking that the SBI will also see some kind of a compression in the
03:11 net interest margin and the growth will be close to the industry average only.
03:17 It's a long-term story.
03:18 I think if you are holding SBI, I think you must hold for more than a year or two years.
03:24 Then only you can make a good amount of return.
03:27 I think for the long-term investor, it remains a hope.
03:30 The shorter term, Rajesh, how does it look on the charts?
03:34 So if you analyze the overall structure for most of the PSU banks are showing good traction
03:39 in terms of buying.
03:41 SBI was consolidating for last two, three months.
03:45 But again, if we analyze the overall long-term structure, it's in bullish trajectory.
03:50 On a monthly chart, stock is already trading about to its breakout level.
03:54 So we believe that if it continues to hold above 600, 605 level, then there is a high
04:00 possibility that we can see upward momentum towards 680 to 700 kind of zone on a positional
04:05 basis.
04:06 So we recommend here to hold their long position with stop loss of 605.
04:12 Understood.
04:13 All right.
04:14 Let's pull up the stock of Ratan India.
04:17 It's currently trading with cuts, I believe, of about 1% or thereabouts.
04:22 This is a question coming in from Manju.
04:24 And she's wondering whether it's a good stock to buy at the current market price.
04:29 Saurabh, do you have coverage on this one?
04:32 And if so, would you suggest a fresh entry at this level?
04:35 I don't have coverage.
04:37 Okay.
04:38 Rajesh, do you have a view on Ratan India on the charts?
04:43 Would you suggest a fresh entry?
04:45 So though we don't track this stock actively, but on the technical ground, yes, there is
04:50 a breakout and stock is already trading about to its previous swing high breakout, which
04:56 was there in August 2021.
04:59 So it's on a longer term chart.
05:01 Yes, there is already breakout.
05:03 So I think if it continues to hold above 70 to 74 level, then possibly, yes, this buying
05:10 momentum is likely to be there in the stock prices.
05:12 Yes, there is some corrective action on the near term chart, but I think 82 to 78 is a
05:18 good support area for the stock.
05:20 Until the stock not breaks those levels, I think he or she should hold the long position
05:25 for a target of 95 to 105.
05:28 All right.
05:30 Next up, we're talking about Bank of India.
05:32 This one's from Khurshid from Srinagar.
05:35 He's already bought into the stock at 115 levels.
05:37 He wants to know the target for the same and his time period is about one year.
05:42 Rajesh, would you have targets on Bank of India?
05:46 Yeah, so this is stock we have recommended to our client also and we are bullish for
05:50 this stock as if we analyze the long term structure, there is a trend reversal is taking
05:56 place on a monthly chart as well as on the yearly chart.
05:59 So we believe that this stock can show good amount of rally in the current year.
06:05 We have a target around 175 to 180 for this stock.
06:10 So buy and accumulate is the strategy for this stock.
06:13 I think he has already bought at lower level.
06:15 So now he can trail his stop loss towards 125, hold the position for 175 to 185 target.
06:22 Got it.
06:23 We've got Mohit from Ludhiana who's asking about Indian Oil Corporation.
06:28 And in fact, let's pull up the chart if we can.
06:31 He's bought at a price of 77, he says.
06:35 It's currently trading, so it's doubled from his buy price.
06:41 He's got a two year time horizon.
06:42 And this is a stock, of course, as part of the OMC pack that is gained in the recent
06:47 past.
06:48 It's up about half a percent in trade today as well.
06:50 I'll come to you on this one, Saurav.
06:53 Fundamentally, how does it look for two years?
06:56 I think if you look at it from the perspective of two years, I think you can hold.
07:01 On the valuation side, the stock seems to be quite attractive.
07:05 And going forward, it is expected that they would be gaining on the, because of the jump
07:11 in the crude prices, they will be gaining extraordinary gains.
07:15 On the refining side and on the marketing margin side also, the company is expected
07:20 to do well.
07:21 So in my sense, it is a hope.
07:22 All right.
07:23 Next up, we're talking about Fedfina, which recently got listed in December, if I'm not
07:28 wrong.
07:29 This one's from Riaz.
07:30 He's bought the stock at 135 levels.
07:33 Saurav, how does Fedfina look for the longer term?
07:36 Sorry, I don't have the time to list.
07:40 All right.
07:41 I don't think there'll be a lot of data on the charts on this one.
07:44 I think he also wants to know about ITC.
07:46 In fact, that was the first question that he had asked.
07:49 He has bought, I believe, at levels of 145.
07:53 Let's pull up the chart and see where it's currently trading.
07:56 And he's got 300 shares of ITC.
07:59 It's trading and significantly higher, therefore.
08:01 So I believe that he's bought, unless he's talking about 145 shares, which he's bought
08:06 at 300.
08:07 Irrespective, the question is whether to hold on at this point.
08:11 Saurav, what's your view on ITC?
08:13 Results just out of the way.
08:15 And I think the only underperformance came, or rather the only outperformance came from
08:19 the hotel business.
08:20 Whereas the others underperformed, and I believe there was also an issue in terms of volume
08:24 growth that they faced.
08:27 See, last year, the base was high.
08:29 The 50-60% kind of volume growth was witnessed in the cigarette business.
08:34 But the company came out, even, you know, the expectation of the market was 0-2% volume
08:40 growth, and it came below that.
08:41 So that was a disappointment.
08:43 But I feel that it is a short-term disappointment.
08:45 Going forward, I think all businesses, if you look at the business, all the businesses,
08:49 FMCG, cigarettes, hotels, paper business is not doing well.
08:53 But I think the things will improve.
08:56 And ITC is the kind of a stock which should remain in your portfolio.
09:00 I think in the next few quarters, I think we'll see much higher price and much better
09:06 performance.
09:07 All right.
09:08 We'll slip into a short break now, but we'll take more questions on the other side.
09:13 Stay tuned.
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12:19 - Welcome back, you're watching Ask Profit.
12:21 Now, before we dive into the queries again,
12:23 I'd like to remind you that you can write to us
12:25 on any of our social media channels
12:26 or on the WhatsApp number that will be on your screen.
12:29 You can also write to us on the YouTube live chat
12:32 and we'll be tracking that.
12:33 Now, the next question is coming from Satya
12:36 and he's talking about two stocks here,
12:38 Dixon and Industars.
12:40 Now, there's some news flow around Dixon as well.
12:43 There's some import duty that's been slashed
12:45 from 15% to 10% on mobile components.
12:48 And on the other hand, Indus,
12:50 we just saw Vodafone Ida come out with the results
12:52 and talked about the management spoke about
12:54 how they will prioritize vendor dues
12:58 and Indus being one of the vendors may benefit from that.
13:02 Now, Saurabh, your view on these two stocks
13:06 and this is from the perspective of one to three years.
13:09 - I think Dixon technology,
13:10 the business prospects are good.
13:12 I mean, the business is expected to grow well,
13:15 but it is a very low margin business.
13:18 Little here and there in the commodity cost
13:21 can impact the margin significantly.
13:23 And moreover, the stock seems to be too pricey.
13:25 The valuation have remained in the past too pricey.
13:28 I mean, on the price to book value side,
13:30 it is pretty good 28 times.
13:32 So that way it doesn't give comfort,
13:36 but all in all, I think stock is good.
13:39 The other stock you talked about, Indus Tower,
13:40 I think the market is pricing in that going forward,
13:43 there will be recovery from the Vodafone Ida.
13:45 Earlier Indus Tower has provisioned the mount
13:50 which it has to take from the Vodafone Ida.
13:54 So at that time we saw a significant amount of connection.
13:59 I think it is a good play as of now.
14:04 - All right.
14:05 We've got a question,
14:06 or rather we've got a couple of questions from Harish.
14:08 He's asking about CG Power,
14:10 which he's bought at levels of 50.
14:12 And in fact, he's pointing out the stock price
14:14 is significantly higher than that right now.
14:17 And he's also got IRFC, which he's bought at levels of 70.
14:20 So on both those, he's making quite the killing in fact.
14:25 So should he hold on and should, or should he book profits?
14:29 Rajesh, what's the view on the charts?
14:31 - So both stock have delivered a good amount of profit
14:37 to his investment.
14:38 So I think he may book some 25% kind of profit.
14:42 And I think, and overall the structure
14:45 for both stocks are looking still on the bullish side.
14:47 I believe that these really can extend further
14:51 as the whole market is in bullish trajectory.
14:53 And the kind of momentum which we are seeing
14:55 in the broader market,
14:56 as well as in the mid-cap, small-cap space,
14:58 that clearly shows these two stocks
15:02 clearly on the winning side.
15:04 So I think IRFC, CG Power, he may hold out.
15:07 He may book some 25% of his investment.
15:10 And now his trailing stock loss for CG Power
15:13 should be at around 420.
15:16 And for IRFC, his trailing stock loss should be at around 155.
15:20 And I think we can see another really in these stocks,
15:24 and we can see further more higher level
15:26 in both the stocks.
15:27 - Next up, we have a question from Abhishek,
15:31 and they want to know which option stock is a good buy,
15:35 considering that we're only a day away from the budget.
15:38 Saurabh, any stock that you would suggest?
15:42 - I think better to seek help of technical.
15:45 - Yeah, Rajesh, okay.
15:47 According to the budget.
15:48 - So I think the real estate is one space
15:53 where one can look to focus at this moment.
15:55 So I think DLF is our preferred choice from that space,
15:58 and you can buy 800 strike call option for DLF
16:02 at this moment,
16:04 which is almost trading almost near to 28 rupees.
16:09 So he can keep his top loss of 19 rupees
16:12 and upside target for this stock,
16:14 we can see towards 45 to 50.
16:16 And another space that we like towards budget,
16:19 that is PSU Bank.
16:21 And from that space,
16:22 I think he can look to buy Kendra Bank call option.
16:25 Kendra Bank is also showing good traction.
16:27 So 480 strike call option,
16:29 he can buy it around 19 rupees with stop loss of 12 rupees.
16:32 Upside target we are projecting towards 28 to 32.
16:36 - The next one we'll take is on Suzlon,
16:39 and this is a question coming from Durga.
16:41 She has bought 6,000 shares at 43.85.
16:46 I believe the purchase was made just yesterday.
16:50 Saurabh, on the fundamentals,
16:53 this is a stock that has made quite the comeback,
16:55 but it's not completely out of the woods yet.
16:58 There are a few headwinds that it still needs to face.
17:02 What are the prospects though on the fundamentals?
17:04 - I think things are changing for the Suzlon for the better,
17:08 and that is what market is trying to price it.
17:10 The debt has been reduced,
17:12 the company is getting new orders,
17:14 their products are getting well rewarded now.
17:18 I think things will change and it is a kind of a buyout
17:21 candidate also, the holding is risky.
17:24 So I think that is what market is trying to price.
17:26 And if you have bought at these prices,
17:28 close to these prices,
17:29 I think you must hold for a long term.
17:31 I think things will improve going forward.
17:34 - All right.
17:35 Next up, we have a question from Jitendra.
17:36 They're talking about HDFC Bank.
17:38 They've bought 100 shares at an average price of 1530.
17:42 They want to know if they should average at this price
17:44 or should they wait?
17:45 Rajesh, what would you suggest?
17:47 We've already talked about the fundamentals post results
17:49 on HDFC Bank quite a lot,
17:51 but how does it look on the charts?
17:53 - So still, stock is facing the supply pressure
17:57 or whatever minor pullback,
17:58 which we are seeing in the stock prices.
18:00 But yes, it's a good quality stock.
18:02 Already stock has corrected.
18:03 It's in oversold trajectory.
18:05 Some pullback action would be there,
18:07 but until stock not manages to cross about 1540, 1550,
18:12 short covering would not be triggered.
18:16 So I think some pullback action for trading point of view,
18:19 yes, could be there.
18:20 Keep stop loss of 1420 to buy this stock.
18:23 As whole banking sector is showing good traction
18:25 in terms of buying.
18:26 Maybe we can see a target of 1500 to 1520
18:29 in the near term for trading perspective.
18:31 - Okay.
18:32 We've got a question coming in from Shishir.
18:36 He's writing from Nagpur.
18:37 Shishir has got three questions,
18:40 but I think I'll stick to one.
18:42 I hope that you have coverage on this, Saurabh.
18:45 This is Sai Silks,
18:46 which is also called Kalamandir Limited
18:49 or Sai Silks Limited,
18:50 which is currently trading at 241.
18:53 It's down about 1% or so.
18:55 He's bought at levels of 257,
18:57 which is not too far away from the current market price.
18:59 Would you have a view?
19:00 And if so, should he hold on?
19:02 - I think this company has got a lot of brand value.
19:07 And if I recollect rightly,
19:10 I think the company is making a good stream
19:13 of good growth in revenues
19:15 and the profitability is also okay.
19:17 So you have to stay put for long.
19:19 I think things will improve going forward.
19:21 I think stock price will move higher.
19:25 You have to stay put for next two, three quarters.
19:27 - All right.
19:28 Next up, we have a question from Devnath
19:30 and they're talking about GMR Airports Infra.
19:32 They've bought the shares at 86.
19:34 Should they continue holding onto it?
19:36 I'm assuming this is for the longer term.
19:38 Saurabh, what's your view on this?
19:41 - I think things are improving for GMR Infra.
19:43 Recently, they have gained some money
19:48 out of their arbitration award from the DAI also.
19:53 So I think on the operation metrics
19:56 of the quarterly numbers are improving.
19:57 So you can hold for now.
20:00 - Got it.
20:01 Naresh Thakur from Jalandhar is writing
20:04 in asking about rights,
20:05 which he's bought at levels of 700.
20:07 Should he hold a book profits?
20:09 What's the view, Rajesh, on the charts?
20:11 - Yeah, he may hold rights.
20:15 I think the overall structure is bullish.
20:17 His stock is almost trading near
20:19 to its all-time high trajectory.
20:20 He may keep a stop loss of 685 to hold the position.
20:24 I think we can see a target towards 800 to 840
20:27 in coming weeks.
20:28 - Rajesh, quick one on Bank Nifty.
20:31 I do not know the name of the,
20:33 so Vidhu is asking about this.
20:35 Tomorrow, of course, today is expiry,
20:37 but tomorrow, what's the view on Bank Nifty?
20:39 - So I think if it's holds above 45, 500 level
20:45 and today's closing on a closing basis,
20:47 then possibly we can see target towards 46,
20:49 600 to 46, 800 in next one or two trading session
20:52 as short covering action is clearly visible
20:55 in today's session.
20:56 So I think 45, 500 is the important level now
20:59 on the Bank Nifty spot.
21:01 We are projecting target towards 45, 500, 600.
21:04 - Got it.
21:05 Rajesh, as well as Saurabh,
21:05 thank you so much for joining in
21:07 and answering all the questions that you did.
21:09 And viewers, we're completely out of time
21:10 on this particular edition of Ask Profit.
21:12 Hopefully some of the answers that we discussed today
21:14 help you out.
21:15 There's lots more coming up over the course of the day,
21:18 and this is NDTV Profit.
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24:32 - Volatility rocks the large street,
24:36 market watchers, IUS Fed decision,
24:39 and interim budget.
24:40 Sensex erases early losses.
24:43 Nifty nears 21,600.
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24:49 Most sectoral indices trade in the green.
24:52 Pharma realty lead gains.
24:54 PSU banks recover from intraday lows.
24:57 (upbeat music)
24:59 Maruti Suzuki, Bank of Baroda, and Sun Pharma
25:03 expected to come out with their December quarter earnings.
25:06 (upbeat music)
25:10 And a stellar D Street debut for Nova Agritech.
25:13 Shares list at a premium of 36% to issue price on the BSE.
25:19 (upbeat music)
25:21 And the Parliament budget session begins.
25:24 President Murmu says, "Make in India,
25:27 "Atma Nirbhar Bharat are now strengths."
25:30 Meanwhile, Prime Minister Modi warns against
25:33 "democracy disruptions in the Parliament."
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25:47 - Hello and welcome.
25:52 This is Hot Money.
25:53 I am Agam Vakil.
25:54 And in this show, we take you through
25:56 all that is buzzing in trade today.
25:57 But before that, a quick look at the markets.
26:00 And for now, we are looking at a substantial amount
26:03 of strength as far as our Indian markets are concerned,
26:06 largely on the back of the bank Nifty.
26:09 While the Nifty and the Sensex are advancing by around 1%,
26:12 the bank Nifty is up a whopping 1.7%
26:16 as we speak in trading near day's highs.
26:20 A substantial up move, a move perhaps,
26:22 which has taken many by surprise.
26:25 And remember, today is the bank Nifty weekly options
26:28 expiry, which means that a lot of call writers
26:31 perhaps will have run.