RVNL Declines Nearly 10% | Ask Profit | NDTV Profit - video Dailymotion

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- #Breaking: What actually happened between the #RBI and #PaytmPaymentsBank? - #RVNL slumps in trade after disappointing Q3 results Get your queries answered by our with Alex Mathew and Smriti Chaudhary on Ask Profit. #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 Instagram: https://www.instagram.com/ndtvprofit/ #ndtvprofit #stockmarket #news #ndtv #business #finance #mutualfunds #sharemarket Share Market News | NDTV Profit LIVE | NDTV Profit LIVE News | Business News LIVE | Finance News | Mutual Funds | Stocks To Buy | Stock Market LIVE News | Stock Market Latest Updates | Sensex Nifty LIVE | Nifty Sensex LIVE

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01:00 Good morning and thanks so much for joining in.

01:14 You're watching Ask Prophet on NDTV Prophet.

01:16 My name is Alex Mathieu and with me is Smriti Chaudhary.

01:18 We'll take you through the next half an hour or so of trade.

01:21 Very quickly taking through where the markets are currently and

01:23 you have cuts of about two-tenths of a percent for the Nifty 50.

01:27 But a majority of the drop that you're seeing is in the broader markets,

01:31 which is seeing a bulk of the selling right now.

01:33 The mid-cap index, the mid-cap 150 index, down about 2% or 2.2% in fact at this point.

01:40 And the small cap index seeing even more cuts,

01:42 down close to 2.5% at this juncture.

01:45 So very clearly the texture of the market or

01:48 the market breadth tilted in favor of the declines.

01:52 If you look at the key indices and where they are moving, you have sharp cuts in

01:57 media as well as metals, the Nifty metal index losing as much as 3% in trade right

02:02 now, and in fact the PSU banking index also dropping as much as 2% in trade today.

02:08 The Nifty bank though, on the other end of the spectrum, is gaining ground but

02:13 only by about half a percent or thereabouts.

02:15 FMCG also has a pack gaining as much as four-tenths of a percent.

02:19 Now one of the stocks that has been in focus over the last few weeks on account

02:24 of regulatory action is 197 Communications, that is Paytm.

02:28 It is down about 7.8% in trade today as well.

02:32 There is certain source-based information that my colleague Vishwanath Nair has

02:37 picked up and he's joining me now to tell you the latest there.

02:40 Vishy, we had the RBI Governor and in fact Deputy Governor speak about this entire saga

02:45 yesterday.

02:46 What's the latest that you're picking up today?

02:48 Right Alex, so the RBI Governor and Deputy Governor were very clear when they spoke at

02:53 the press conference yesterday that if you are going to be in violation of existing norms

02:59 and if you do not do corrective action as suggested by the regulator, then there is

03:02 likely going to be action against you, so supervisory action against you.

03:06 It could be in the form of penalties or business restrictions depending on how situations

03:10 evolve.

03:11 Now what my sources are telling me with regard to the situation that has evolved in the Paytm

03:18 universe specifically with relation to Paytm Payments Bank is that some of this action,

03:24 some of the RBI's action against this entity could have been spurred by unexpected outcomes

03:29 that came out of the Payments Bank universe.

03:31 Now remember that Payments Banks as entities were originally sort of conceptualized 10

03:37 years ago, vast majority of the Payments Bank universe has not really been able to make

03:41 a dent in the financial services ecosystem except two entities, the SPINO and Paytm.

03:47 These are the only two entities that have been able to use that sort of ecosystem or

03:51 that framework effectively.

03:53 Now what the sources are saying is that there was a lack of engagement between the RBI and

03:59 the Paytm Payments Bank entity primarily because there was really no point person at the Payments

04:05 Bank.

04:06 The CEO, it wasn't clear whether the RBI should be talking to the CEO or the board or the

04:11 promoter considering that Vijay Sharma owns 51%, so he's the majority owner and pretty

04:16 much calls the shots at this entity.

04:18 The other problem that came up here is that the fact that the Paytm Payments Bank's reach

04:24 far exceeded what the regulator expected from the Payments Bank universe and in fact if

04:29 you look at some of the concerns that have emerged in Paytm Payments Bank which was with

04:33 regard to money laundering, potential money laundering and accounts being you know not

04:38 having adequate KYC.

04:41 Now these problems are actually much smaller than what one would think would deserve this

04:47 kind of action.

04:48 That's what the sources are telling us.

04:49 They're also saying that disclosures as well as compliance processes which are established

04:54 for the universal banking universe are not so well established within the Payments Bank

04:59 which means that whatever the Payments Bank does essentially the regulator is looking

05:02 at it from a slightly suspicious point of view and therefore without that kind of established

05:07 process there was really no way for the Payments Bank to have adequately satisfied the regulator

05:13 with regard to compliance.

05:15 Now I want to put a disclaimer here, nobody is suggesting that Paytm Payments Bank did

05:19 not do something wrong.

05:21 Nobody is saying that the regulator was wrong in taking steps against the entity.

05:25 However, maybe a severity could have been a debatable topic.

05:29 That's what the sources are telling us now.

05:30 Absolutely.

05:31 Thanks so much Vikshi for breaking that down for us.

05:34 Let me introduce you to the guests we have today.

05:36 We've got Vaishali Parekh as well as Ashish Maheshwari joining in.

05:41 To the both of you, thank you so much for taking the time.

05:44 I believe we've got Vaishali right now.

05:47 Vaishali, we've seen a few stocks react very sharply to results and these are stocks

05:52 that have run up quite significantly.

05:54 One of them of course RVNL from the Railways Pack, disappointing numbers that has caused

06:00 a bit of a crack in the stock.

06:01 PFC is another stock that has gained very significantly over the past several months.

06:06 It's down about 11% in trade today.

06:09 How does one react to some of these news items and the reaction that you are seeing in the

06:14 stocks then?

06:15 Very good morning first of all.

06:17 But yes, rightly said actually when we are talking about all these stocks, I mean since

06:22 a very long time these stocks have been running and there was no respite in that too.

06:29 So I think it was already a time to book profit but right now seeing how it has broken the

06:34 trend, I would really say that yes, one should book exit the stocks for now because mid-cap

06:40 sector seems to be exhausted and I think these stocks can go in for further correction.

06:46 So I would say it's time to exit for some time.

06:50 Let's see how the trend follows in coming days and then we can have a relook.

06:54 All right.

06:56 Good morning viewers and good morning Vaishali.

06:58 We'll quickly jump into the questions now.

07:01 The first one is coming from Tarun and they are talking about Aster DM Healthcare.

07:04 They have already bought in the shares at 437 levels.

07:08 They want to know if this is a good time to accumulate the stock.

07:12 Vaishali, would you suggest buying at this juncture or maybe wait a little bit more?

07:19 I would say actually it's better to wait a bit because I think 400 would be a good level

07:24 to look at and that's where I think the support also lies.

07:28 So in a market like this where there is lot of uncertainty and volatility, I think we

07:33 one should wait for the support levels and buy accordingly.

07:35 Okay.

07:36 BCG is the next counter that we are looking at and in fact this is a question from Nitish

07:40 Gupta.

07:41 He is writing from Bengaluru and he has bought at levels of 20.3 and I mean the stock is currently

07:49 trading below that mark of course at 18.7 or thereabouts.

07:52 He is willing to hold Vaishali for a period of a year.

07:57 What should his strategy be?

07:59 So I would say actually the stock has been consolidating and I mean of course just some

08:04 time back there was an erratic trend but right now I would say it's consolidating.

08:09 So I think to hold now that he has held on for so long, I mean hold the stock with a

08:14 stop loss of 17 and one may get a clarity only about 21.

08:18 So right now I see a range of 17 as support and 21 as resistance.

08:24 Once it moves past 21, there could be some clarity of this stock going towards 23, 24.

08:31 So that's how I would look at this stock.

08:33 All right.

08:34 Ashish is now joining us.

08:37 Ashish, a couple of minutes back we were talking about RVNL and we are seeing some pressure

08:43 in the stock today after disappointing results.

08:46 But on the railway sector and particularly on this stock, we have already seen quite

08:51 a bit of an upside in the stock in the last couple of months.

08:54 How do you see this playing in the next couple of years rather for the longer term, the railway

09:00 pack?

09:01 Yeah, railway pack as far as long term is concerned, there's no doubt in mind of anyone

09:07 that this sector will continue to perform on account of sizable capex which is happening

09:14 in this particular sector.

09:15 So all these companies will continue to do well.

09:18 I think RVNL only issue was that for last three quarters, company is not able to deliver

09:25 as per analyst expectation.

09:27 Because if you see the stock price from 50 rupees, the stock went up to 350 rupees.

09:31 Everything happened in one year time frame.

09:34 And at that time, if compared to other peer stock like Aircon or Rides, you under deliver,

09:41 then certainly some sell off is bound to come.

09:45 And this is what's happening in this stock also.

09:47 But long term, I'm bullish as far as railway sector is concerned.

09:51 Only thing is, this particular sector was also quite hot along with other PSUs or some

09:56 other stock.

09:57 Profit taking is happening.

09:58 So would you suggest buying because now the stock is slightly dipping?

10:05 No, I'll still not suggest to buy because I think after this quarterly numbers, still

10:13 we haven't seen any institutional participation.

10:15 One thing is also we must take into account, particularly in RVNL, if we see last one year

10:21 shareholding pattern, neither FIIs nor DIIs have increased their stakes significantly.

10:27 So it is all about the retail money which is flowing in the stock.

10:30 This that is done so much movement is there in the stock when results are not as per expectation.

10:38 But surely I'll be a buyer in this stock at 200 rupees because in long run, Navratna company

10:43 and the kind of order book they are building up, I think this stock will perform.

10:50 But wait for 50 rupees more correction.

10:56 I want to talk about HDFC Bank.

10:57 This is a question coming in from Amit.

11:01 Pull up the year-to-date chart.

11:02 This is not every couple of months that we have a conversation like this about HDFC Bank.

11:08 It's 13 odd percent or at least it was 13 odd percent of the nifty 50 and it's down

11:14 about 17 percent in the year-to-date period.

11:16 So the question is, should you buy at this juncture?

11:18 Of course, Amit is wondering about rumours circulating about Paytm payments bank and

11:24 I think a lot of rumours circulating about who will buy if at all it will be bought.

11:29 I don't think that's what I want to focus on.

11:32 The question is on the fundamentals, loan growth doesn't seem to be an issue.

11:37 If anything, deposit growth was an issue in the third quarter.

11:41 Do you think that the stock is beaten down too much?

11:43 Should it be bought at this juncture?

11:45 Oh, still, I think this is one of the laggard stock if you see entire banking rally and

11:51 still there's no solace that or there's no bottom in sight.

11:58 Because again, the problem is this almost 80 percent is hold by institutional players

12:03 and given the market cap also almost 10 lakh, 50,000, 60,000 crores the market cap now.

12:10 I think the bank is fairly valued if you ask me at 1400 rupees.

12:15 So now if you ask me from the risk return point of view, I see better returns in other

12:22 stocks like Axis Bank or ICICI Bank instead of SGFC Bank because valuation is already

12:27 quite stressed and post SGFC merger also I think still bank is taking some time to show

12:36 the kind of numbers or the ratios which analysts are looking for.

12:40 So wait for SGFC Bank, maybe 1325, 1350 will be good level to enter.

12:46 So wait is what Ashish is saying for fresh buying into SGFC Bank.

12:51 But next up, we're talking about DCB Bank versus City Union Bank.

12:57 This question is from Satya and he wants to know which is better from medium term outlook.

13:02 Vaishali, comparing both of these two, which one would you pick?

13:07 Well, so City Union Bank actually has really not performed and I think it's quite corrected

13:15 and risk reward ratio right now looks quite favourable.

13:19 So I'm talking about it purely from technical terms, well, 129, 130 was the previous low

13:24 and chartically also it's quite oversold.

13:27 So I think City Union Bank can be bought with 128 as top loss and for a trading target of

13:34 140, 145.

13:35 And as far as DCB is concerned, well, it's just got its corrective move.

13:41 There is still scope of further downside because from today's candle what I see, it is still

13:46 likely to go towards 120 levels.

13:49 So that is the level where I would have a look.

13:52 All right.

13:53 I want to pull up Zomato next and we've got a question coming in from Geeta.

13:59 She's asking whether it can be held for the long term.

14:01 She is wondering whether to buy at levels of 144 or thereabouts, which is where it is

14:06 right now.

14:07 Of course, the company just posted its numbers for the third quarter in a stellar set.

14:12 It was, it's a net profit of 138 crore in the quarter and that compares with a net loss

14:19 of 347 crore in the year ago period.

14:23 And that's on the back of better than expected top line growth as well.

14:26 Ashish, the question is, should it be bought from the long term perspective?

14:31 You know, a lot of people are talking about the potential in this space.

14:33 The question is, is that in the price right now?

14:37 Ashish, that's for you.

14:40 Yeah.

14:41 So even if you see a quarter over quarter from 36 now, this has come to 136 crore profit

14:49 from September to December quarter, that's all the story.

14:53 That now company is focusing more on profitability and whatever the blanket related issues are

14:59 there, whether stop or hammer down, it is now on the back burner.

15:04 And I think this is something a classical story.

15:07 You have 138 crore quarterly profit and 1.25 lakh crore market cap now of Zomato.

15:14 It shows the kind of confidence our institution players are having now in this company.

15:19 Besides this, if you see BI in last one year, they've increased their holding from 7% to

15:24 almost 16%.

15:26 So whatever PIP investors have exited, they are mopped up by our domestic institutional

15:33 investors who seem to be very bullish.

15:35 And whatever the brokerages report, you see on Zomato from 170 to almost 200 plus targets

15:41 are also being given.

15:43 So in my view, you can remain invested here.

15:46 In fact, at 140 or if you get below 140, this will be a good buy.

15:52 All right.

15:53 We'll slip into a short break now, but we'll take more questions on the other side.

15:58 Stay tuned.

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19:38 - Welcome back, you're watching Ask Profit on NDTV Profit

19:46 and I believe we've got a caller on the show today.

19:49 Ravi Kumar from Chennai is calling in.

19:51 Ravi, if you can hear me,

19:52 what's your question for our experts today?

19:55 - Yeah, my question is regarding a stock

19:57 called the MSP Steel and Power Limiter.

19:59 So I would like to buy the stock

20:02 and then I was quoting around 29 rupees.

20:05 But it's the right time to buy.

20:08 So I'm a long-term investor.

20:09 - Got it.

20:10 So Ravi, how did you hear about the stock

20:12 and what was the idea that you had?

20:14 - No, actually now I was going to the steel industry,

20:19 the capital market magazine.

20:20 In particular, you know,

20:22 the stock only was trading at a low price

20:24 and looks to be turned around the last quarter.

20:27 And the book, I mean, the results also became positive

20:32 and it was negative to positive.

20:34 I thought, okay, still it's a low price.

20:36 There's a right time to buy.

20:37 - Understood.

20:38 - There's only some solution for their side.

20:40 - Understood.

20:41 Let me take it to the fundamental expert then.

20:44 What about MSP Steel, Ashish?

20:48 What do you think of it?

20:48 Have you looked at this company?

20:50 - Yes, I looked at this company.

20:54 In fact, from seven rupees stock went to almost 33 rupees.

20:57 And I think Ex-Ind is put into surveillance also.

21:02 This is why we have seen a ceiling from 33

21:06 to now 29 rupees.

21:07 But I agree that as entire cycle

21:10 of the steel industry is reversing.

21:11 So we have seen excellent set of numbers

21:14 from mid-size steel companies also.

21:17 But one thing you must be always present

21:20 that because steel prices are directly related

21:23 to what is happening in the China

21:25 and the metal market globally.

21:26 And as now many commodities prices

21:28 are also at one to six month low like lead, copper,

21:32 nickel, et cetera.

21:33 So some pressure may again come.

21:35 Though fundamentally things are improving,

21:38 but you are taking a call on steel prices.

21:41 So instead of this, I suggest to remain

21:43 with the large cap stock in steel

21:46 instead of small cap stocks.

21:48 So my picks will be more like Godavari Power

21:52 kind of a stock or Jindal Steel and Power

21:56 instead of MSPL.

21:58 - Right.

22:00 Thank you so much Ravi for joining us

22:02 and thanks Ashish for your answer.

22:05 Now Ashish we've got your fans on the show.

22:08 We have Satya and Sid and they've asked me

22:11 to convey to you that you're one of their favorites.

22:15 And we have a question as well.

22:19 Sid wants to know about Avanti Feeds.

22:21 He wants to know if this is a good time to buy the stock.

22:25 The stock is down, I believe 4%,

22:27 three and a half percent in trade today.

22:29 - Yeah, I think today's downfall in the stock

22:34 cannot be perceived that the stock has done bad

22:37 or there's something because if you see indices

22:41 and the small cap, mid cap indices are almost down 3%

22:44 on account of profit taking.

22:46 So I don't think so any issue as far as good quality stocks

22:51 are concerned.

22:51 Avanti Feed has also given very good return.

22:54 As in budget, government has also given a lot of emphasis

22:58 on aquaculture related work or exports of aqua products.

23:03 So companies like Avanti Feed will keep on doing.

23:06 In fact, 475 will be a good level

23:09 to enter into this stock also.

23:12 - All right, let's go across Vaishali to you on NBCC.

23:15 We've got Subhendu who's asking this next question.

23:19 Could it be bought at the current price

23:20 and what according to you is the trajectory

23:22 that the stock is likely to take?

23:24 It's under significant pressure in trade today

23:26 down about six and a half percent.

23:29 - Yes, I agree but I think it is better to accumulate

23:32 because we still don't have a clarity

23:34 whether market is halting here

23:35 or are we going to see further corrective move.

23:37 But the trend right now looks pretty much intact

23:40 and I would say it would be a better strategy

23:43 to accumulate with 130 as support

23:45 because when I'm looking at the monthly chart,

23:47 we have upward projection of 180 to 200 levels.

23:51 So NBCC is a buy at every decline for now.

23:55 - All right, next up we have a question from Sanal

23:58 and he wants to know about Cochin Shipyard

24:02 and RT Industries as well.

24:04 Now Vaishali, this one's from you.

24:06 What are the targets on these two stocks,

24:08 Cochin Shipyard and RT Industries?

24:12 - So Cochin Shipyard I would say continue holding

24:14 with 800 as support and look for a target,

24:17 a near-term target strategy would be around 945.

24:20 If we move past that, there could be a scope

24:23 for the stock going towards 1050 to 1100.

24:26 Now as far as RT is concerned,

24:28 well, it is in a trending mode

24:30 and in spite of all the choppiness

24:32 that we have witnessed today, it's holding on.

24:34 So that implies the inherent strength of the stock.

24:37 So I would say RT Industries can be bought

24:40 with 600 as support and I think long-term positional target

24:44 can come to 700 to 720.

24:48 - Got it.

24:49 We've got another question from Vijay

24:50 and he's writing in from Chennai.

24:52 He's asking about Crompton Greaves Consumer Electricals

24:54 which he's bought at levels of 296 in December.

24:58 It's currently trading at 286 or thereabouts

25:01 and he's asking what action should he take?

25:03 Should he hold or should he exit?

25:04 He's got 900 shares.

25:06 I will come back to you Vaishali on the charts.

25:08 How does it look?

25:09 - So continue holding.

25:11 There is no strength right now.

25:12 It's in fact showing some signs of profit booking.

25:15 If 280 levels break,

25:17 then I think one should exit the stock.

25:19 - Let's take the next one and it's from Nirmit.

25:23 Nirmit is asking about Hoodco

25:25 and he's bought at levels of 114 or thereabouts

25:29 and he's got 16,200 shares.

25:33 So he's making some gains here.

25:35 The question actually is on the fundamentals.

25:37 Oh, actually no, he's asking for a one month view.

25:40 So Vaishali, I'll come back to you.

25:41 On the charts, he's making significant profits.

25:44 Should he take some off the table?

25:46 - I would think so, yes.

25:47 Partial profit booking should not be ruled out at this level.

25:50 - What are the levels that he should watch out for?

25:52 And if at all you're suggesting a trailing stop loss,

25:54 can you guide us with the levels?

25:56 - The trailing stop loss comes at around 165 levels.

25:59 So that will be pretty much still 20 rupees

26:01 below the price that it is right now.

26:04 So 165 levels break, 160, 165 is a very strong support level.

26:09 Then the stock can get into a corrective mode

26:11 and perhaps go to even 150, 140 and so on.

26:15 So well, 160 is the base for support.

26:18 - All right, that brings us to the end

26:20 of this edition of Ask Profit.

26:22 Vaishali, as well as Ashish,

26:23 thank you so much for joining in.

26:24 Viewers, we'll be back on Monday

26:26 to take all of your questions from Shruthi and myself

26:28 and the team that put the show together.

26:30 Thank you so much for watching and have a great weekend.

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RVNL Declines Nearly 10% | Ask Profit | NDTV Profit

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