#VodafoneIdea surges over 9% in trade after K.M. Birla says that he had no plans to exit from the struggling telecom.
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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For more videos subscribe to our channel: https://www.youtube.com/@NDTVProfitIndia
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01:49 - Good morning and thanks so much for joining in.
01:58 You're watching Ask Prophet.
01:59 My name is Alex Mathew, with me is Smriti Chaudhary.
02:02 This show on NDTV Prophet is geared towards
02:04 getting you answers to all of your stock related questions.
02:08 If you've got them, then you can send them to us
02:10 on any one of our social media platforms,
02:11 or indeed on the WhatsApp number
02:13 that is flashing on the bottom of your screen.
02:17 Let's very quickly get you a check
02:20 of how the markets are faring right now this Friday.
02:22 And you have a very narrow movement
02:25 on the benchmark Nifty 50.
02:27 It is gaining about a 10th of a percent
02:29 off the low point of the day,
02:30 but certainly off the high point as well.
02:32 And the action on the broader markets
02:35 is not too significant also.
02:38 So you have gains of about four 10ths of a percent
02:40 for the mid cap 150 index,
02:42 as well as about a half a percent gain
02:45 on the small cap 250 index.
02:47 So therefore, broadly, the market breadth
02:50 tilted just a tad bit in favor of the advances.
02:53 In terms of the sectoral performers,
02:55 then you have the media index
02:57 that is trading with gains of about a percent and a half
03:00 and leading gains.
03:01 You also have the IT index that's up about six 10ths
03:03 of a percent, similar for the pharma index
03:06 that is up at about,
03:07 Realty is also doing reasonably okay.
03:09 Healthcare is up about half a percent.
03:12 And once again, among the laggards,
03:13 you have the PSU names and particularly
03:15 the PSU banking pack as a whole
03:18 that's doing not too well in trade,
03:20 down about eight 10ths of a percent
03:23 or nine 10ths of a percent or thereabouts.
03:25 Now on today's program,
03:26 we are focusing on Vodafone Idea.
03:30 It is arguably one of the stocks of the day
03:32 and it is up quite considerably in trade.
03:35 In fact, at this juncture, close to nine percent.
03:37 Some comments made by the chairman
03:39 of the Aditya Birla Group.
03:41 We'll talk about the context, of course,
03:43 but first listen into what he had to say
03:45 about Vodafone Idea.
03:46 (speaking in foreign language)
03:53 - You are just picking out Vodafone.
03:55 We remain very committed to Vodafone
03:57 and like we've said in public domain,
04:00 efforts are on to get outside investors.
04:05 And I don't know what's prompting your question.
04:08 I think we remain as committed to it
04:10 as we have been in the past.
04:11 - Good morning, that was the chairman
04:17 of Aditya Birla Group talking about
04:20 how they do not plan to exit Vodafone Idea.
04:23 Now Vodafone Idea has been under a lot of stress
04:26 because of its debt position.
04:28 It has a debt of over two lakh crores.
04:30 However, this kind of,
04:32 Kumar Mangalam Birla coming out and saying
04:35 that they're looking for investors.
04:37 Now they have been saying this for a while as well.
04:39 This has been going on for more than a year now
04:42 that they've been trying to find investors.
04:44 If you look at a couple of numbers here,
04:46 their gross debt, as I mentioned, is over two lakh crore
04:48 and most of it, at least 90% of it,
04:51 is owed to the government.
04:52 There are AGR dues and other dues as well.
04:55 So, and also one more point, Alex,
04:58 they have promised, the promoter group has promised,
05:01 now we don't know which promoter group,
05:02 but I like to think it's Aditya Birla Group
05:04 because the London Vodafone Inc. has,
05:08 the PLC group has kind of,
05:11 in their books the value of Vodafone Idea is zero.
05:13 So it's the Aditya Birla Group that has promised
05:16 probably to put 2,000 crores only.
05:19 Now if you put it in context of the amount of debt
05:21 they have, it's nothing.
05:23 So considering all of that,
05:25 but there is a very positive sentiment playing out
05:27 and even if you look at the stock performance,
05:29 it's up about 131% in the last six months.
05:32 So clearly the street is ready to put money
05:36 into Vodafone Idea, but let's take a view
05:38 from our guest today.
05:40 We have joining us G. Chokalingam of Economics Research
05:43 and Kunal Ramya of The Street.
05:45 Welcome to both of you.
05:47 Now I'll start with you, Mr. Chokalingam.
05:49 Tell us about your views on Vodafone Idea.
05:51 We also have a viewer asking about this counter.
05:56 To be specific, he says he bought the stock
05:58 at 8.9 per share.
06:00 Should he continue holding on to for six months?
06:02 If he's a conservative investor, he should sell the stock.
06:06 Unfortunately, there are a lot of new investors
06:09 are buying, lapping up shares which are traded
06:12 in single digit or double digit
06:14 without looking into valuation.
06:16 If you look at the valuation,
06:17 it is trading at a 70 to 80% premium to Bahti Hector
06:22 if you take EBITDA.
06:24 I think it is extremely unjustifiable
06:26 considering the fact that Vodafone is not able
06:28 to grow its business.
06:30 In fact, once in a while it loses its market share.
06:33 So therefore, fundamentally sell,
06:35 there is no doubt about it.
06:37 All right.
06:38 What about the technicals though?
06:40 Kunal, this is a stock, as Smriti pointed out,
06:43 that's gained quite considerably.
06:45 And I think a lot of people that invested
06:46 when it was a penny stock have made
06:48 a significant amount of money.
06:51 The question is, should you continue holding
06:52 or should you take this opportunity
06:54 to book some profits?
06:55 What does the chart look like?
06:57 Morning, Alex.
06:59 Morning, everyone.
06:59 So, with all due respect to the fundamentals,
07:02 certainly the counter has actually making
07:04 a clear higher top, higher bottom.
07:06 If you look at the extreme bottoms of March 2023,
07:08 the count was somewhere at around 5 rupees 80 paise.
07:11 And since then, this counter is showing
07:12 extreme volumes coming up,
07:14 and those volumes are on the buying side itself.
07:16 Even in today's day, you should only volume
07:18 that's highest of the last entire month.
07:21 So yeah, as for the technicals,
07:22 the trend is certainly intact.
07:24 One can continue to hold this position.
07:26 In fact, one can initiate the fresh by about 18.
07:29 This is purely based on the price action.
07:31 One can keep the stop-loss now,
07:33 maintaining the stop-loss at around 16.
07:35 I think one can continue holding
07:36 in the levels of 22 to 22 and a half.
07:40 So what, you know, the targets on the weekly chart.
07:41 So yeah, with that target,
07:43 one can continue to hold the position.
07:45 All right.
07:46 So, targets of about 22,
07:48 from a shorter-term perspective.
07:50 On the technicals, of course.
07:52 Next up, we have a question from Surya from Meerut,
07:56 and they're talking about Vedanta.
07:58 Now this is from the perspective of two to three years.
08:03 Mr. Okalingam, how does Vedanta look
08:05 considering the fundamentals?
08:06 Yeah, apparently in terms of, you know,
08:12 the earning, it looks cheap.
08:14 But I would prefer a better name like Indalco
08:17 in the metal space, because in this balance sheet,
08:20 if you look at its associates and sub-divis,
08:22 and the accumulated losses and accounting,
08:25 I do not get much confidence in Vedanta.
08:28 Okay, all right.
08:30 Let's jump to the next question.
08:32 And we've got Birla Soft to talk about.
08:36 And this is Mr. Tangadurai who's asking about this counter.
08:39 And he's looking at a very short-term perspective.
08:43 Is it possible for it to go up?
08:45 And he says 20 points,
08:46 but I'm guessing 20 rupees is the question.
08:49 So is it something like, is something like an 850
08:53 a possibility on a weekly timeframe?
08:57 What does it look like on the charts, Kunal?
08:59 So Alex, if you look at the recent performance
09:03 since 29th of Jan, so far,
09:04 this counter has been in sideways consolidation.
09:07 The trend is massive.
09:08 Undoubtedly, it's clearly making
09:10 higher top, higher bottom formation,
09:11 but this seems to be the time correction.
09:13 Now, because our viewers' timeframe is very, very short,
09:16 I just brought it down to lower timeframe.
09:18 So we have a support coming at around 805
09:21 and the resistance is placed at around 840.
09:23 Unless this counter breaks 840 on the higher side,
09:26 the new rally seems a little difficult.
09:29 So, you know, I would advise him to hold
09:30 with the trailing stop-loss of 810.
09:32 Either 810 or the timeframe,
09:34 whichever gets triggered out earlier,
09:36 should take an exit and revisit the counter above 840.
09:39 I think the levels of 910 to 20 can also be seen
09:43 once 840 is taken out.
09:45 All right.
09:46 Next up, we have a question from Geeta
09:48 and they're talking about Praj Industries.
09:50 Now, this is from a longer-term perspective as well.
09:53 Mr. Jokalingam, we've seen sugar stocks come down,
09:57 but there seems to be a positive sentiment
09:59 around Praj Industries.
10:01 What do you think about it from a longer-term perspective,
10:03 from a two to three-year perspective?
10:05 Yeah, definitely one can bolder
10:07 from two to three-year perspective for two reasons.
10:10 One, the stock has fallen a lot from its 52-week high.
10:14 Most importantly, we all know
10:16 the kind of business model they have.
10:18 There will be ups and downs in the overall business
10:20 because of the election and government policies,
10:22 but over a longer period,
10:24 definitely it should do reasonably well.
10:26 So therefore, only for long-term investors, it's a bold.
10:30 Got it.
10:31 All right.
10:32 We've got Lavish from Indore
10:33 who's asking about Balaji Telefilms,
10:36 which he has bought at levels of 120, he says.
10:39 Let's pull up the chart
10:40 and see what it's currently trading.
10:42 I believe it's at 137 or thereabouts.
10:44 So he's making a little bit of money,
10:46 but he's looking at a six-month time frame.
10:48 So Kunal, based on the charts,
10:50 what are the kind of targets that he should look at?
10:52 And if at all, what are the stop losses
10:54 that he should bear in mind?
10:56 So, Alex, on the chart,
10:59 the counter has really come up in a big way.
11:01 If you look at the volume activities,
11:02 they are really strong enough,
11:04 and the counter is certainly in trend.
11:06 But yeah, one needs to keep in mind
11:07 that when such a massive rally emerges,
11:09 there are always retracements and pullbacks,
11:11 which are also gonna be sharper.
11:13 Undoubtedly, one can hold on
11:14 with the trailing stop loss of around 120 as of now.
11:17 And if the counter remains near to these levels,
11:20 I think 170 to 175 can be the target.
11:23 And this target is based on 2017 and '18 previous high.
11:27 So considering those levels,
11:28 I think one can hold on
11:29 with the trailing stop loss of 120 in mind.
11:32 So just a clarification,
11:34 Geeta's message saying that she is looking
11:36 to do a fresh entry into Praj industry.
11:39 So the call on the fundamentals
11:41 is a hold, but on the technicals,
11:43 Kunal, what's the view on the charts?
11:45 Is this a good opportunity to accumulate?
11:47 Or would you say that you should wait a little bit
11:50 for better opportunities?
11:52 - See, on the Praj industries,
11:54 we have seen the counter is facing the resistance
11:56 of around 520 since a month now.
11:58 So yeah, one can certainly initiate a buy above 520.
12:02 And with the stop loss of around 485,
12:05 one can expect the targets of around 580 also.
12:07 But it's a conditional call
12:08 to initiate a buy only above 520 on a closing basis.
12:12 - All right.
12:13 Next up, we have a question by Loke Shetty.
12:18 He's written to us on YouTube.
12:19 He's talking about our power, Reliance Power.
12:22 Now, he wants to know if it's a stock
12:25 he should hold on for more than a year.
12:28 Now, Mr. Okalingam, we've seen a lot of brokerages
12:31 being constructive on the power sector as a whole,
12:33 but Reliance Power, the Q3 results were,
12:38 weren't as good.
12:40 The losses has expanded, the expenses are increasing.
12:44 So would you suggest buying into our power
12:46 or is there an alternate to our power
12:48 that you would suggest within the power sector?
12:51 - I think it's a good sell.
12:53 Luckily, because of the bull run in the small cap,
12:56 it has rallied a lot.
12:58 I agree with you, there's a lot of debt
13:01 and there are a lot of assets which are yet to be turned around,
13:04 put in operation, they're struggling.
13:06 So it's a good sell.
13:08 Alternative, unfortunately,
13:10 when the high quality stocks like Tata Power,
13:13 Torrent Power, they're all gone up.
13:14 So I would consider a good alternative
13:17 for this kind of stock is a bank fixed dollar savings.
13:21 - Okay, that's an interesting perspective.
13:23 Not even in the renewable space, Mr. Okalingam?
13:26 - Unfortunately, even in the renewable space,
13:29 if you take solar, the stock price has rallied a lot.
13:33 And look at the data point.
13:35 The global prices of solar panels have crashed even 35 to 45%.
13:40 And today, you could have seen in the media,
13:43 2023, the solar power generation,
13:46 the demand, the actual implementation has come down a lot.
13:50 But the market is not listening to all this.
13:52 So that is why I said,
13:55 if you are asking me to give alternative power,
13:57 honestly, I don't have alternative
13:58 except the fixed deposits.
14:00 - All right, and rightly so.
14:03 Even in the power financing space,
14:05 Mrs. Okalingam, REC, PFC, REDA,
14:08 all of them have run up quite substantially.
14:10 So your point is well taken.
14:12 We've got a question on the technicals though
14:14 of a company called Silgo, Silgo Retail.
14:18 Let's try and pull that up.
14:19 In fact, this is Deepa from Bengaluru
14:21 who's asking about this counter.
14:23 She's bought at levels of 41.9
14:24 and she's got as many as a thousand shares.
14:26 It is currently unchanged on the markets right now.
14:32 She's talking about having seen their rights issue as well
14:35 and she's wondering whether to hold.
14:37 She's lost a little bit of ground.
14:40 On the charts Kunal, how does it look?
14:42 - So I think she must have bought on 11th of Jan
14:46 where the counter hit that high.
14:47 In fact, I heard this company name itself
14:49 for the very first time.
14:50 The counter is in lower circuit.
14:51 You know, the problem with these counters
14:53 is that the risk management goes for toss
14:55 even if it comes down and one wants to exit the position.
14:57 So I'm just sharing the levels and on the charts,
14:59 we can see the previous support.
15:01 The previous, I would say the bottom at around 27.
15:05 So I think one can hold on with the stock loss of 27.
15:07 If the counter fails to hold this 27 mark,
15:10 one should take an exit,
15:11 but I'm a little worried as to how the liquidity
15:14 will play out in this counter.
15:15 So for now, just hold on with the stock loss of 27
15:18 and try to exit such kind of counters,
15:20 though there is some corporate action which is visible,
15:23 but I think one should take an exit
15:24 from such counters, yes.
15:26 - Kunal, the next one we're talking about,
15:30 is SBI cards.
15:31 This one's from Namita.
15:33 They bought the stock at 755 levels
15:35 and that's above the current market price.
15:39 And the time period is three to four months only.
15:43 So from a technical standpoint,
15:45 the stock hasn't given much returns,
15:47 even it's down in fact 11% in the last six months.
15:51 From a three to four month perspective,
15:53 would you suggest holding on to this?
15:55 - Yeah, certainly.
15:57 Smriti, if you look at the overall formation since 2021,
16:00 this counter has been in the roller coaster ride
16:02 and it's right now available right near to the support level.
16:05 The extreme support is at 700.
16:07 In fact, just a month back,
16:08 I think it tested that level
16:09 and from there it has recovered.
16:11 From the risk reward point of view,
16:13 this is an amazing counter.
16:14 One can certainly hold on to it.
16:16 I think the momentum we will see
16:17 once the counter manages to cross above 760.
16:20 But yeah, for now, one can certainly hold on.
16:22 Initiate a fresh buy above 760
16:25 with the target of around 825 to 830.
16:28 Even I'm watching out for this counter,
16:30 but as of now, the momentum is missing.
16:31 Risk reward ratio is extremely favorable.
16:33 Hold on to the position.
16:35 - That's a view on SBI cards.
16:37 We have to step into a very quick break,
16:39 Mr. Chokalingam as well as Kunal.
16:40 Do stay with us.
16:41 Viewers, we'll be back before you know it.
16:43 Keep your questions ready.
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21:00 - Welcome back.
21:08 You're watching Ask Prophet.
21:10 Let's quickly dive into the questions.
21:11 This one's from coming,
21:13 we're talking about Dr. Reddy's now,
21:15 and this one's coming from Anand Kumar from Dharampuri.
21:18 He bought the stock at 5,878 levels.
21:22 From a longer term perspective, Mr. Chokalingam,
21:25 will this be a pick within the pharma space?
21:29 - It's definitely not a buy based on the valuation.
21:32 Probably it can hold on
21:34 since I'm looking negative on small and big cap.
21:37 This kind of pharma defensive may not fall
21:39 and it might protect the equity wealth.
21:41 From that perspective, it's a hold.
21:44 - And any targets that you might have, Kunal,
21:47 based on the charts for Dr. Reddy's laboratories,
21:50 maybe a shorter term timeframe?
21:53 - The lowest timeframe, which is the early one,
21:55 I think the country is clearly making higher top,
21:57 higher bottom formation
21:58 and this channel might just continue.
21:59 So, you know, what I would advise in such kind of counters
22:02 where the target is very difficult to set
22:04 is to keep a stop loss in mind,
22:06 which is trailing stop loss.
22:07 As of now, that's placed at around 6,200.
22:10 With that stop loss, one can just continue to hold on
22:12 and keep trailing the stop loss
22:13 till the time that Reddy just continues.
22:16 - All right.
22:17 We've got the next question coming in from Dilip
22:19 and he's asking,
22:21 coming in from Dilip and Dilip is writing in
22:23 from Jamnagar in Gujarat.
22:24 He's got Wellspun Living,
22:26 which he's bought at levels of 165.
22:29 He's got 500 shares.
22:30 Any view on the fundamentals, Mr. Chokalingam?
22:33 - Yeah.
22:35 It looks, you know, quite stretched in terms of valuation.
22:41 I would give a sell call on Wellspun Living.
22:44 - So let me take that further then to Kunal.
22:47 Kunal, the sell call has come through on the fundamentals,
22:50 but what level should Dilip look to sell at?
22:52 - See now, Alex, on this counter,
22:55 we saw the rally from almost 60 rupees to 170 rupees
22:58 in just one year time span.
23:00 In fact, post-November,
23:01 we have seen the sideways consolidation
23:03 and the price consolidated near the high itself.
23:06 I'm watching out for the breakout of 170
23:08 if the counter manages to go above 170.
23:10 I'll consider this to be, you know,
23:11 the beginning of a new rally.
23:13 And based on technicals,
23:14 one can certainly initiate a buy above 170
23:16 with the stop loss of 160.
23:18 And the targets can then be as high as 235 to 240.
23:22 And, you know, this might just cross the previous high also.
23:24 So yeah, there might be much more room for the upside.
23:27 So wait for the closing above 170
23:30 with the stop loss of 160,
23:31 then one can initiate a buy.
23:33 - All right.
23:34 Next up, we have a question on Centum Electronics.
23:38 Now this one's from Ravi Kumar.
23:41 And they have already bought the shares at 1,675 levels.
23:46 And I think this is a long-term question.
23:49 So Mr. Okalingam, I'm going to come to you on this.
23:52 Now, we saw the profits jump on this stock in the third quarter.
23:56 But from a longer-term perspective,
23:57 would you suggest holding on to this?
24:00 - No, before giving my view on the stock,
24:02 I just want to tell you that I'm a little considerate in my approach.
24:05 So there is a possibility of losing, you know,
24:07 market opportunity in the short term by listening to my views.
24:12 So please take your own call.
24:14 Centum Electronics is a great management, good, you know, promoters, I believe.
24:20 There is no doubt at all.
24:21 But the value, and if I look at the values in multiple,
24:25 I do not have any comfort at all.
24:28 So according to me, it's a set.
24:31 - All right.
24:31 Let's take a technical view on this.
24:33 Kunal, would you suggest holding on to this?
24:36 Or is it a good time to book profits?
24:38 And what are the levels for booking profits?
24:41 Should you wait?
24:42 Should you maybe look at some, maybe it's some more time to stay in the stock?
24:47 - See, you know, again, this is one of those counters which saw the massive rally.
24:50 And since August 2023 so far, this counter is not able to cross 1900 mark.
24:55 In fact, there were three attempts to cross 1900 levels, but it was a failure.
24:59 In fact, in today's, this week also, if you check the high,
25:02 that was at around 1905, but it failed to sustain that level.
25:06 So once this counter manages to close above 1900,
25:09 I think a fresh rally of again 200 to 250 points can be seen.
25:13 So wait for the closing above 1900.
25:15 If our viewer is already holding, I would suggest him to take an exit for now.
25:19 Just wait for 1900 closing and above that level,
25:22 one can reinitiate the buy with the stop loss of 1800.
25:25 One can expect the targets of around 2100 to 2150.
25:29 - Got it.
25:30 Mohan from Talcher is asking about Bajaj Finance.
25:34 He's pointing out that he's a senior citizen and a pensioner.
25:36 So that is context for you.
25:38 He's holding 10 shares, which is what at levels of 7500,
25:42 slightly elevated levels, and the stock is currently trading at 6,676.
25:47 On the fundamentals, there are certain issues that have been highlighted by the regulator,
25:54 Mr. Chokalingam, in the unsecured space.
25:57 And I think to a certain extent, the management has also taken stock of that.
26:03 You know, a lot to be said about capital adequacy,
26:05 which is not a concern for Bajaj Finance.
26:07 But I guess to a certain extent, one would expect that loan growth may not be as aggressive
26:12 as it has been in previous quarters.
26:14 With all of that in mind, what would you do with Bajaj Finance?
26:19 - Definitely, I agree with you.
26:21 And also the POC banks, after post-consolidation,
26:24 they are giving tough competition to the entire NPFC space.
26:27 First time, they have come back to on par with the industry credit growth, these POC banks.
26:32 And on the other hand, Bajaj Finance valuation is highly stressed.
26:36 Still, since he has bought at Rs. 750,000 and also considering his growth track record,
26:43 also high beta nature of the stock, probably he can hold on to it till Rs. 750,000.
26:49 - All right. Next up, we have a question from Gangadhar from Mangalore.
26:54 They're talking about Bharat Forge. They bought the stock at 1425 levels.
26:59 And they recently bought the stock about 45 days ago.
27:02 Now, they want to know if they can recover their investment and make some profit on it,
27:07 this for a shorter term, for three months period.
27:09 Kunal, from a three-month perspective, possible for the stock to go further?
27:15 - See, we have already seen the massive correction and that was along with the volume.
27:18 I think the extreme bottom has already been done on the counter.
27:21 If you look at the overall longer-term trend, it's still positive.
27:24 So one can certainly hold on to the position right now.
27:27 The levels which I'm watching out for are like 1050, which is a strong support.
27:32 1040 to 1050 is something to keep in mind as a support.
27:36 If the counter by any chance reaches those levels again,
27:39 one can initiate a fresh level entry at that level.
27:43 The stop-loss can be like 20-25 points.
27:45 And I think this rally might just continue.
27:47 But for now, in the immediate short-term timeframe,
27:50 I really doubt on whether counter can bounce back looking at the recent correction.
27:54 But yeah, these levels are worth certainly holding the position right now.
27:57 - All right. Fair point. Kunal, as well as Mr. Choklingam,
28:01 thank you so much for joining in and answering all the questions that you did answer today.
28:05 And viewers, I know that we've not been able to take all of your questions today,
28:09 but we've certainly taken quite a few.
28:11 Hopefully, some of them have benefited you as well, even if your specific question was not answered.
28:16 We promise to take a few of those questions that you've asked on Monday for everybody else.
28:21 Do tune in on Monday. We'll be back at 11.30.
28:23 There's lots more lined up over the course of the day from Smriti and myself
28:27 and the team that put the show together.
28:28 Thank you so much for watching. Do stay tuned.
28:30 This is NDTV Profit.
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32:42 Hello and welcome. You're watching Hot Money. I'm Harsh Sait.
32:45 We're going to quickly take you through where markets are at as we stand.
32:48 We're looking at a pretty flat market.
32:51 In fact, you're seeing just about a slight positive bias as we speak, just about 7 basis points higher.
32:58 And, you know, let's, if we can just quickly highlight some of the stocks which are buzzing on the Nifty 50 itself.
33:05 We're looking at gains coming in from OneCipla and Dr. Reddy. Those are the two top gainers.
33:11 We're also seeing gains from some of the life insurers, SPI Life, HDFC Life.
33:16 Those constitute probably the top five gainers on the Nifty 50, all of which are gaining 1% plus in trade as we speak.
33:24 The losers come from the likes of An Asian Paints, a BPCL, a Bajaj Auto.
33:28 Bajaj Auto hit it out of the park yesterday, but a quiet day of trade, 1.1% lower as we speak.
33:34 And we also have an NTPC, which is down roughly a percent or thereabouts.
33:38 So let's also look at what are the top contributories on the Nifty, if we may.
33:43 HDFC Bank stands out in terms of that. Not much to talk about, honestly, on the benchmark,
33:48 because we're trading in a very tight 90 point kind of a band.
33:52 And, you know, it's a day that we would take because we are very close to all time highs.
33:58 And as long as we don't slip up at this point, it looks like a day that we would not mind taking.
34:04 Let's look at where the mid caps and small caps are, because those are still on a tear, a third of a percent higher on the Nifty mid cap.
34:11 The Nifty small cap also higher by around half a percent or thereabouts.
34:14 Nothing much sectorally also happening. If we can pull up the sectors and what we'll see is, yeah, I mean, mild gains on the Nifty Bank.
34:23 The Nifty Media seems a buzz as well. Nifty Pharma making gains.
34:27 We did speak about the two top gainers on the Nifty 50 being DRL and Zipla.
34:31 Very similar to that showing. And that's a reflection of what's happening on the Nifty Pharma as well.
34:36 And Nifty PSU Bank being the top loser. But we're going to talk about some specific stocks that we always do on this show.
34:44 And, you know, I'm going to start off with, you know, some order that's come in from the Maharashtra FDA.
34:52 McDonald's is has been told to change the labeling of cheese based products.
34:58 Tamanna is here to break down details. We have Westlife Foods and Focus on the back of that. Tamanna, over to you.
35:04 Yeah. So the Maharashtra FDA in December last year ordered an Ahmednagar outlet of McDonald's to shut down.
35:14 The reason is that the order of the FDA says at least seven to eight products being sold by McDonald's that claim to have cheese in them just did not have cheese.
35:27 Now, this is where it gets interesting, because this product looks like cheese, tastes like cheese, but is not cheese.
35:34 This is called a cheese analog. It's unfortunately widespread use in the food industry and is made out of hydrogenated oil instead of dairy.
35:45 Now, a lot of outlets do use them because it's more cost effective.
35:48 McDonald's was asked to explain itself that, you know, communication to the Maharashtra FDA was that we will remove the labeling where we are claiming it's cheese.
36:00 But the fact is that the Maharashtra FDA was not satisfied. They shut down this Ahmednagar branch.
36:05 Now, what is important to understand from a Westlife perspective is that the FDA in Maharashtra wants to extend this to the entire region as well.
36:15 So what that means for Westlife is that they will have to relabel these products as making sure it does not say it's cheese and make those changes across the board.
36:27 Now, the last we checked on online aggregator apps where you can order McDonald's, some of these products are still called cheese.
36:34 For example, the blueberry cheesecake does not have cheese, according to this Maharashtra FDA order.
36:40 The cheese nuggets do not have cheese. They have something that looks like cheese, but is not quite so.
36:46 As of this point, we are awaiting a response from Westlife on what they're about to do, what they plan to do and what their response is to what the Maharashtra FDA said.
36:54 But definitely pressure on the company. And the interesting part, if you go through the Maharashtra FDA order, is that they suspect a lot of other food outlets must be doing this.
37:05 They are now going to start investigations in that direction.
37:08 Wow. So this is, of course, coming to you with regard to Westlife and the impact of that.
37:15 Thanks so much for that, Tamanna. And let's quickly pull up a Westlife on chart, see what it's doing.
37:21 One point seven percent lower. The chart was flashing. And let me also welcome on board Gaurang Shah, who is the head investment strategist at GeoJit Financial Services.
37:32 Welcome to the show, Gaurang. Firstly, Gaurang, you know, talk to us about what this possibly means for Westlife and how do you look at Westlife and its valuations as of now?
37:48 Is this a larger risk which could start to play out on the industry as a whole as well as for Westlife in particular?
37:55 What's your sense? Thank you very much and good afternoon to all of you. Thank you very much for having me on the show.
38:03 So, first of all, I think we should always remember that the consumer is the king.
38:07 And as Tamanna was mentioning, I think if names like credible names like McDonald's or any other company which is involved into selling something which is not actually what it is.
38:20 And if you are going to mislead and fool the consumers, I think you'll have to pay a price for that, to be very honest.
38:27 I mean, you have to maintain that ethics, credibility. And I think it is long time now that in India, consumers' interests are taken care of.
38:41 And there are appropriate rules and regulations which are not only in books, but also applied at ground level.
38:48 So, I'll be more than happy if the government or the regulator steps in and not only check McDonald's, but all such outlets, all such names,
38:59 who on the pretext of saying that they are serving cheese to you, but it is something which is clinically or lab made.
39:11 My sense is that ethics, common sense and wisdom should have prevailed upon West Life Food, which goes by the name of McDonald's,
39:20 and have enough credibility not to do these kind of things. And I guess if appropriate actions have to be taken, if stores have to be shut, so be it.
39:30 Understood, Gaurang. You're giving it a bit of a bashing. But, you know, this apart, I just want to quickly try and cover and understand.
39:40 Some of these companies are trading at valuations of 100 plus in terms of price to earnings.
39:45 Now, I fully understand that structurally the story is very strong. Growth prospects are very solid.
39:54 It's an underpenetrated industry, especially when you look at how vast India is geographically, as well as people wise, the total addressable market, as they call it.
40:05 But are these valuations slightly elevated in your view from a sector perspective?
40:12 So let me first of all give you, you know, India has a population of 140 crores.
40:16 Thirty five percent of that I'm given to understand, according to my understanding, that 35 percent of that 140 crores is the young population,
40:24 which is between the age bracket of 30 and below and 28 and below.
40:28 Now, if you have such a vast audience to cater to and along with that, of course, you know, a lot of people other than that young population consume these kind of products.
40:38 So it's a huge market. And India was, is and always be a consumption driven economy.
40:43 In terms of valuation, some of it might look a little bit expensive depending upon what earnings are delivered.
40:51 Those, you know, ratios will get re-rated upwards. And similarly, the price targets get re-rated upwards.
40:59 But since it is such a huge market and it has such huge potential, my sense is that if you want to buy something good, you have to pay a premium for it.
41:11 You don't go and buy second hand things from the market. Similar is if you want to purchase something in your portfolio from a long term perspective,
41:18 you will have to pay a little bit of premium for it. How much of premium you are willing to pay is,
41:23 it depends upon individual to individual, investor to investor. And of course, the perspective in terms of what kind of time horizon.
41:30 So as and when you get correction in the market, you get opportunities. You should look at strong, credible names in this QSR segment.
41:38 One company that I would want to mention is Jubilee Foodworks. We have fundamental coverage on that.
41:43 Understood. Got it. Thank you so much for that perspective, Gaurang. We quickly switch focus to Vodafone Idea.
41:51 The company now says it's going to consider fundraising through multiple instruments board meeting next week.
41:58 Smriti, talk to us about what this means. Smriti joining in.
42:02 She's going to talk to us about what this means for the company and give us some more perspective and color on this, Smriti.
42:08 Good afternoon, Harsh. Yes, you rightly mentioned that there's a board meeting scheduled for February 27,
42:14 where they'll consider fundraising through QIP rights issue or any other instruments.
42:19 Now, to give you a little perspective before this, in fact, a year ago, more than a year ago,
42:25 the promoter had promised that they will infuse about 2000 crores in the company if needed.
42:32 And in their earnings calls, they mentioned time and again that this will be part of the fundraise that happens.
42:37 Now, I think this is the fundraise that we're looking at. So it's very likely that the promoters will come in and infuse 2000 crores.
42:44 However, if you put this into perspective in terms of their debt, now they have a debt of over the gross debt of over two lakh crores.
42:53 So is 2000 crores enough? Unless some other investors come in and put more money, it's it's not enough.
43:00 Now, I'd like to quote Sunil Bharti Mittal, who in a recent media interview said that Vodafone Idea would need about seven to nine billion dollars to survive.
43:12 So that's the money needed for the survival of Vodafone Idea. Vodafone Idea currently does not offer 5G as compared to its competitors like Jio and Bharti Airtel.
43:23 They have been on a losing streak. They've been losing subscribers left, right and center. And Jio and Bharti Airtel have been gaining from this.
43:31 Now, just they have a deferred payment obligation of about one point three lakh of the two lakh crores that I mentioned.
43:38 Ninety percent of it is owed to the government. So that's the debt position of the company.
43:43 If you look at the stock performance, however, the street seems to be very positive and upbeat about the stock.
43:49 The stock is given 131 percent gain in the last six months itself.
43:53 Now, this fundraise may also be a positive for Industar, which is why we're seeing an upbeat in the Industar stock as well today.
44:00 If Vodafone Idea starts paying its dues to Industar, according to brokerages, the Industar may come out with a special dividend as well.
44:08 And it may, you know, positively improve Industar's situation as well.
44:14 So it's a positive for Industar if Vodafone Idea is able to raise funds.
44:19 Got it. Thank you so much for that Smriti. But six and a half percent higher on Vodafone Idea yesterday.
44:25 Ten and a half percent higher on Vodafone Idea today. Also, if we can pull up Indust Towers, rather the stock was up.
44:33 I missed the number, but there you go. Almost six percent higher on Indust Towers today.
44:38 Gaurang, lots happening on some of these counters. Your sense with regard to valuations, a very interesting statistic,
44:46 which I just pulled out while Smriti was making that talk.
44:51 Thirty one and a half lakh shareholders in Vodafone Idea. Thirty lakh shareholders in State Bank of India.
44:58 Fifty lakh shareholders in Yes Bank. What's happening here?
45:04 So honestly, on Vodafone Idea, currently we have a sell recommendation.
45:10 And I was listening into those numbers that Smriti was just mentioning with respect to how much funds is likely to come in.
45:18 And this is not the first time that we are listening this kind of news or stories, so call it.
45:26 It has not materialized. Even in the recent past, we have heard that, yes, funds are going to come in.
45:31 But those funds are nowhere near the door for them to come in.
45:36 So I wonder when and when in what form it is going to come in. Point number one.
45:40 Point number two, I hope you listen to what the figure of debt was on the balance sheet in excess of two lakh crores.
45:47 What percentage are we talking about when it comes to two lakh crores of debt and two thousand crores of fund infusion?
45:54 That number doesn't make sense to me at all. Along with that, a huge number of subscribers are getting lost to likes of Bharatiya Airtel and Jio.
46:04 They are still living in 4G. And I don't think that they have any plans in the near future to launch 5G.
46:10 Because launching 5G will require a lot more capital, a gradation of platforms and technologies.
46:16 So forget about that. My sense is that if you want to buy something in cellular service provider, then as a disclosure, we have coverage on Bharatiya Airtel.
46:26 We also have coverage on Reliance Industries because Jio Mobile Mobility is also a part of Reliance Industries balance sheet.
46:34 So my sense is that it is better to stick with known names rather than to go for uncertainty and risk your capital along with the sleep at night.
46:44 In terms of Yes Bank, again, we had coverage over there on the sell side. Earlier, we had a buy recommendation.
46:51 But then, of course, the earlier management and the kind of new slow we had, we converted our buy to sell.
46:56 Our targets on the lower side on Yes Bank was achieved. We have removed the coverage.
47:00 Currently, we don't have any coverage. And even in the banking universe, if you want to like the private sector banks, the way Yes Bank is,
47:07 then I think it is more credible to go with Federal Bank rather than go with Yes Bank.
47:11 Got it. Got it, Gaurang. Thank you so much for all of those views.
47:15 We're going to slip into a very, very short break. More on the other side. We'll talk more stocks.
47:20 Stay tuned to NDTV Profit.
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51:32 Welcome back. You're watching Hot Money on NDTV Profit.
51:43 Now, the latest update with regard to Byju's, the extraordinary general meeting has been delayed.
51:50 This is, of course, an NDTV Profit exclusive.
51:53 We have Rishabh joining us with what his sources are telling him.
51:57 Rishabh, what do you have for us?
52:02 That's right, Harsh. We are in Bangalore where the extraordinary general meeting is taking place.
52:09 And this is a hot showdown that we're seeing between Byju's and its investors.
52:15 And what I'm hearing from sources on both sides, so I'm hearing from Byju's sources as well as investor sources,
52:22 that the EGM started at 9 but the roll call process took a really, really long time.
52:27 It was delayed because there were a lot of impersonating people there,
52:33 people impersonating various famous celebrities as well as investors in Byju's.
52:40 We're seeing that the EGM is still going on. The voting is still going on.
52:45 It's expected to complete at around 12.30, 12.45,
52:50 post which it will go to a registrar who will sort of verify the results, count the votes,
52:57 and then we will know what resolutions have been passed.
53:01 We're also seeing that