Reliance Industries In Focus | Ask Profit | NDTV Profit - video Dailymotion

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#RelianceIndustries has gained nearly 1% after news of it's media business creating a JV with Disney's India unit. What does it mean for shareholders?   Get your queries answered by our guests with Smriti Chaudhary on Ask Profit. #NDTVProfitLive    Guest List: Avinash Goraskshakar, Director, Research Profitmart Securities  Nilesh Jain, Head AVP- Technical & Derivatives Research,(Equity Research), Centrum Broking    ______________________________________________________   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

Transcript

00:00 Good morning, you're watching Ask Prophet. I'm Smriti Choudhury and for the next 30 minutes

00:27 we'll take all your stock related questions. Now you can write to us on any of our social

00:31 media channels or on the WhatsApp number that's flashing on your screen. You can also write

00:36 to us on the YouTube live chat and I'll be tracking that and we'll take questions from

00:40 there as well. Now before we jump into the questions or even the focus for today, let's

00:45 quickly look at where the markets are currently at. If you look at the benchmark indices,

00:49 kind of a flat day today. It's absolutely flat as we speak. It's below 22,000 levels.

00:57 Bit of a weak day in terms of and this sort of weakness is a broad based weakness. If

01:05 you look at the range also in which Nifty 50 is trading, you'll see that it's very range

01:10 bound day and we started off lower, kind of went on in a little bit of green and now we're

01:16 back in red, but pretty flattish. So not a lot of complaints there. If you look at the

01:22 sectors in trade, you have the likes of Nifty Auto that's pretty flat, but slightly in the

01:30 green. FMCG also flattish, but in the green. We have Nifty Metal that's up about four tenth

01:36 of a percent as we speak. Among the losers, rest all are in red. However, the biggest

01:42 loser in today's trade is Nifty Media that's down about 2% in trade and we'll talk about

01:49 Nifty Media and what's dragging the index down as well in just a bit. But before that,

01:56 let's look at the constituents also of the Nifty 50 and see what is there. You have the

02:03 likes of RIL that's in green today and we'll discuss that in a little bit of detail. We

02:09 have the likes of Mahindra and Mahindra Maruti ICICI Bank all in the green, while HDFC Bank,

02:15 Axis Bank, Bajaj Auto all in the red today. That's the idea. If you look at the broader

02:22 markets as well, broader markets are also not doing too well today. In fact, if you

02:27 look at the mid cap index, it's down half a percent as we speak. So there's a little

02:33 bit more weakness on the broader end. Nifty small cap as well down 0.8% of a percent.

02:39 So clearly, a lot more weakness on the broader end today in the markets, but overall a quiet

02:45 day. However, there are a couple of stocks that are buzzing today and that's on the back

02:51 of a big deal that announcement came last night about the Disney-RIL merger. And because

02:59 of that, we're seeing RIL in green today. It's come down from its highs and is up about

03:04 a tenth of a percent as we speak. However, if you look at TV18 and Network18, they are

03:09 in the red today and they were down about close to 4%, 5% now TV18 down and if we can

03:15 pull up Network18 as well, also down 5%. Now, let's talk a little bit about the merger.

03:23 If you look at the valuation, the merger is pegged at about 70,000 crores on post money

03:28 basis. Obviously, this excludes the synergies that are going to come from the merger. But

03:34 let's look at the valuations a little bit more closely and how it affects Reliance and

03:39 how it affects Disney. If you look at the valuations, RIL media business is valued at

03:43 close to 40,300 crores, while the investment by RIL into the media business is about 40,100.

03:51 So that means there's not a lot of value accretion happening for RIL. If you look at Star India

03:56 business, that's the Disney business that's going to merge, is valued at about 25,600

04:01 crores or $3.14 billion for the 36% stake that's going to have in the merger. If you

04:09 look at the pre-COVID levels of Star India's valuation, they were extremely high at 1.2

04:14 lakh crores, that is close to about $14 to $15 billion. Now, Star has been struggling

04:20 in India for a while after it lost IPL rights, and that's a digital rights. And those are

04:26 won by Viacom 18. And that's the valuation front that we're seeing. Shareholders, in

04:33 terms of shareholding, of course, RIL and Viacom will have a major portion in the merger

04:39 and will be led by Neeta Ambani, as announced last night. But on that note, let me introduce

04:44 you to the guests for today and take it up with them, what they think about the merger.

04:49 We have joining us Avinash Gorakshakar of Research Profit Marks Securities and Nilesh

04:55 Jain of Centrum Broking joining in. Welcome, Avinash. Thanks for joining in on the show.

05:02 Yeah.

05:03 So, we've spoken about the merger, we're seeing RIL kind of, not too much of an increase there,

05:13 but definitely in the green. And I remember it was 1% higher a couple of, I think, 30

05:20 minutes or so back. But TV18, Network18, all down 5%. How are you taking this? And if people

05:26 are holding these stocks, especially TV18 and Network18, what would you suggest them

05:31 to do with this?

05:33 Well, I think clearly, you know, I think, as mentioned by you, the contours of the merger

05:39 are yet to play out. And I think, you know, the markets would obviously look at what kind

05:44 of revenue scalability can come on the consolidated entity. My sense is that, you know, valuations

05:50 are one thing, but markets would obviously see how efficiently, you know, the new management

05:55 led by Reliance is going to scale up the business in the next three to five years. I think for

06:00 the shareholders of Reliance, it's a very big opportunity because that actually adds

06:05 a lot of muscle to their balance sheet. Obviously, they get a very good asset. So I think how

06:10 they would be scaling up the opportunity in the next, say, three to five years is going

06:14 to be a very key element. You know, just one day afterwards, you know, whatever one may

06:20 say, it's very difficult to pinpoint what is the kind of material impact, you know,

06:25 on a near term or a longer term basis. So I think we'll have to wait for some time.

06:29 But yes, I think the direction is right. The merger is definitely going to add a lot of

06:34 value to Reliance in the longer term. And I think as far as Network18 and TV18 are concerned,

06:38 let me tell you one thing. These companies have never delivered in the last three to

06:42 four years. If you see their financial performance, stock performance, they have always been underperformance.

06:46 So I think the markets would be looking at the prima facie front company, that is Reliance,

06:51 how Reliance can actually take this, you know, this acquisition in a much better way. Because

06:57 finally, in the consolidated entity, Reliance is going to now play a very important role.

07:02 So I would believe that, you know, you've got to look at Reliance as a consolidated

07:06 kind of entity. The smaller companies may not show any significant upside, but the parent

07:11 company is definitely bound to benefit because Reliance has been clearly saying that they

07:16 want to diversify into new business areas and come out of their traditional business

07:20 areas to add a little bit of scalability to their business where margins are better, and

07:25 obviously where valuations in the future would get better.

07:28 All right. Thanks to the viewer, Vinash. Let me also welcome Nilesh Jain, who has joined

07:33 us. Good morning, Nilesh, and thanks for joining in.

07:36 Good morning. Thank you for having me on your channel.

07:40 The pleasure is ours. Let's talk about the ITC, Nilesh. We have a viewer, Naveen, who

07:49 wants to know if this is a good time to get into the stock. Would you suggest buying at

07:54 these levels?

07:55 Right. So we have seen a good correction in this particular counter from the levels of

08:00 470 and it has found a good support somewhere around 400 levels. Now, from past couple of

08:08 weeks now, it looks like it is forming a nice base in the range of 400 to 410. So I think,

08:15 yes, it is giving a good opportunity to accumulate this particular counter at current level,

08:20 provided it should not reach 400 levels at the lower side, which is acting as a double

08:24 bottom sort of a pattern that can be seen on the daily timeframe chart. So as long as

08:29 it manages to defend 400 mark on the lower side, we expect a pullback to continue towards

08:35 420 to 430 on an immediate basis. And positionally, yes, it's a good portfolio stock, can be added

08:41 in a staggered manner for a positional target of 450 to 460.

08:46 All right. Understood. Next up, we have a question on State Bank of India. Avinash,

08:52 this is for the longer term. We have Sachin Singh asking if he should invest into the

08:58 stock from a two to three-year perspective. There's some weakness in the last couple of

09:03 days. Would you suggest that now that there's a little bit of a correction that has happened

09:08 in the stock, this is an opportunity to enter the stock?

09:13 I think, see, as far as SBI is concerned, I think it was a great buy around Rs. 600

09:18 crore. I believe once the third quarter numbers came in, the market was not very happy with

09:23 those numbers. But later on, when the management commentary came out and the market got a hint

09:28 that a significant amount of rewriting would happen, the stock actually delivered a very

09:32 good performance in a very short period of time. Now, the stock is consolidating. And

09:36 I think my sense is that at these levels, if the investor enters, then he's going to

09:41 take a view of at least two years plus. The bank has been doing admirably well on the

09:45 asset quality side, on the loan book growth side, plus all the subsidiaries are doing

09:50 well. So unless the investor has got a two-year kind of plus kind of time frame, in the near

09:56 term, the stock may remain sideways. But yes, longer term, there's a lot of value which

09:59 could be considered. But yes, the time frame needs to be at least two years plus if the

10:04 investor needs to make an investment. In the short term, the stock would remain range-bound.

10:08 Right. Avinash, continuing on this, talking about banking only, we have another question

10:14 from Anil. They're talking about PNB and Central Bank. They've bought PNB at 70 and Central

10:19 Bank at 48. This is for the longer-term perspective. Would you suggest holding on to these two

10:24 counters as well? Yeah, I think, see, within the PSU pack, I

10:29 think PNB has also made a very strong turnaround. My sense is that numbers have been pretty

10:35 solid and I think the bank is making a conscious effort now to focus on core areas like housing,

10:41 finance, infrastructure. And I think these improvements have already got reflected in

10:45 the quarter three for Punjab National Bank. So I think, yes, I think the buying price

10:50 is pretty good. 70 rupees has been a good entry-level price for the investor. So I think

10:54 one should hold on. Here also, I would not be surprised that once the new government

11:01 comes in post the elections, infrastructure is going to be a key focus area. And that

11:05 is where the larger banks like PNB would play a big role. As far as Central Bank is concerned,

11:10 it's a smaller PSU bank. But yes, numbers have been pretty decent. And I think if the

11:14 investor needs to give in a time frame of at least 12-15 months, he can continue to

11:19 hold. We are positive on PSU banks. But yes, I think one should be a little patient here

11:23 because the rise in most of the PSU stocks has been very significant in a very short

11:27 period of time. So as of now, these stocks could remain in a consolidation kind of mode.

11:31 Post the elections, I think one could see a kind of a re-rating again.

11:34 All right. Got it. Next up, we have a question from Bhaskaran. They're talking about two

11:39 counters, Infibeam and Ramco Cement. Both are on an uptick today. Infibeam is up about

11:46 4% while Ramco is up over 8% as we speak. Nilesh, this is from a six-pounds perspective.

11:52 Since we're seeing an uptick in both the stocks today, would you suggest booking some profits?

11:59 Well, Smriti, first counter was Infibeam. I couldn't hear the second counter.

12:07 Ramco Cement. Ramco Cement. Okay. So I believe this particular

12:12 counter is trading somewhere around 8.32 and it looks like slightly flattish for the day.

12:18 Yes. So Infibeam structure is looking strong. It has given a good consolidation breakout.

12:24 It is a multi-year breakout candidate. The breakout came at 29 rupees. So positionally,

12:29 from next four to six months point of view, this particular counter has a potential to

12:33 move towards 40, 45 or maybe 50 rupees on the upside. So still, stop loss should be

12:39 placed somewhere around 29 rupees. So that was the breakout level. So a trailing stop

12:44 loss should be kept below 29 and one can stay put in Infibeam. On the other hand, Ramco

12:49 Cement, today we have witnessed another lag on the lower side. This particular stock has

12:55 underperformed within this particular space. So it looks like it is forming a rounding

12:59 top sort of formation. It looks like on a weaker note on an immediate basis. Below 820,

13:05 we might see further sell-off to continue towards 770 to 750. So not looking promising

13:10 at current level, but a strict stop loss should be placed below 820 on the closing basis.

13:15 Any pullback towards 870, 890 or maybe 900, that should be used as an exit opportunity.

13:20 So within CementPak, the stock that we are liking is Ambuja Cement and Ultratec Cement.

13:26 One can better think about switching the positions in these names.

13:29 Right. Apologies, I was looking at Ramco Systems, which is up 8%, while Ramco Cement is on a

13:36 downturn actually. It's pretty much flattish there. Let's talk about the count of Varun

13:42 Beverages. This one is from Rajesh Maheshwari. They have already bought in the shares at

13:47 an average price of 690 rupees. This is from a medium to long-term perspective. Avinash,

13:53 Varun Beverages as well, a pretty expensive stock there. But from here on, from a medium

14:00 to long-term perspective, what do you see based on the fundamentals of the company?

14:07 I think Varun Beverages is a company which is a prime bottler for Pepsi in India. And

14:13 I think basically, if you look at the cold beverages market, I think they have been riding

14:19 high on the volume sold by Pepsi. They have a pan-India presence. And I think in India,

14:25 for example, in a tropical market like India, I think the cold beverages market is definitely

14:31 growing quite strongly. In fact, they have been launched many new products which have

14:35 done very well. And my sense is that this is a stock which one has to take a view of

14:39 at least next two to three years. The entry price for the investor has been pretty solid.

14:44 So I think you should continue to hold. These are franchises which are not going to happen

14:49 and which are not going to be developed very soon by any other competitor that easily.

14:53 So the business has got a significant amount of moat and the opportunity in India is pretty

14:57 large. So I think if you have a two to three year kind of time frame, continue to ride

15:01 this company. But in the near term, valuations definitely seem to be fairly expensive. So

15:06 I think in the near term, the stock is just going to consolidate and move sideways.

15:09 All right, understood. Now we'll slip into a short break. But after the break, we'll

15:14 take more of your questions and we'll start off with the Sri Kishore Sharma. So stay tuned

15:19 for that. We'll be back just in a bit.

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17:56 - Welcome back, you're watching Ask Profit.

18:04 Let's quickly dive into the questions.

18:06 The first one as we promised is from Shri Kishore Sharma

18:10 from Bihar.

18:11 They're talking about IRFC.

18:13 They've bought 7,000 shares at a price of 70 rupees.

18:16 Now this is from the longer term perspective,

18:18 power company, brokerages seem,

18:20 Avinash, brokerages do seem to be very positive

18:23 on the sector from a longer term perspective,

18:25 but on this specific counter,

18:27 what would you suggest Mr. Shri Kishore to do with it?

18:30 - I think already, you know,

18:33 if you look at the kind of price upside which has happened,

18:37 the stock has almost doubled, you know,

18:38 from the time the investor has purchased.

18:41 So my sense is that now at these levels, you know,

18:43 I think incremental upside is going to be

18:45 a little bit slower,

18:46 although longer term prospects

18:47 are definitely quite promising for IRFC.

18:50 But considering the fact that, you know,

18:52 IRFC is largely in the financing of railway capex

18:55 to the extent of 40, 50% of the railways,

18:58 you know, requirements every year,

19:00 I would be quite conscious of the fact that

19:02 unless you have a two to three year kind of timeframe,

19:05 this crop can obviously give good returns,

19:07 but only in the longer term.

19:09 In the short term, you know,

19:10 I think the stock has multiplied from almost 25, 30 rupees

19:13 to almost 140, 150 odd rupees.

19:15 So I think they should book out some profits off the table

19:18 and obviously, you know,

19:19 retain the remaining stocks for the next two years,

19:21 which will probably give them a better risk reward.

19:23 At the same time,

19:24 they could encash their profits at the current odd levels.

19:27 - All right.

19:28 Next up, we have a question from Rakesh

19:30 and he's talking about dynamatic technologies.

19:35 Now, Nilesh, this is from a shorter term perspective,

19:38 they want a technical view.

19:40 If there's any targets or any sort of levels

19:43 that you should watch out for in this stock?

19:46 - All right, Smriti.

19:49 So this particular counter has been in an uptrend

19:51 and constantly forming a high-depth and high-bottom formation

19:54 even on the weekly timeframe chart,

19:57 the structure looks very strong,

19:59 provided if somebody wants to hold it

20:01 for a longer term timeframe,

20:02 I think this stock has a potential

20:04 to move towards 7,500 to 8,000 zone.

20:07 On a minute basis,

20:09 the structure looks slightly on a weaker note,

20:10 it may touch the levels of 6,700 to 6,600,

20:14 but from a longer term point of view,

20:15 one can stay put keeping stock below 6,800

20:18 and a potential target comes somewhere around

20:21 to the 7,500 to 7,800.

20:23 - All right, next up, we have a question on,

20:29 this one's from Vino from Chennai.

20:31 Now, Avinash, this is for you.

20:33 Now, they're not talking about any specific stock,

20:35 but they want to pick four stocks

20:38 and they want to invest into it on an SIP basis.

20:41 They plan to invest 50K in total, 50,000 in total,

20:45 and this from a long-term perspective, about five years.

20:48 Are there any stock picks that you have?

20:50 - I think, I would suggest that

20:54 within the private banking space,

20:56 something like an IDFC First Bank

20:58 could be a good candidate for an SIP.

21:00 This is one bank where I feel that over the longer term,

21:03 a lot of value could get generated.

21:05 The stock has consolidated at the current broad levels,

21:07 but if one were to look at the next, say, three to four year,

21:10 I'm pretty confident that the bank will be able

21:12 to expand its balance sheet quite significantly.

21:15 And most importantly,

21:16 I think with a very solid management bandwidth

21:20 and the kind of opportunity in the MSME, SME space,

21:23 this bank is definitely going to reward shareholders

21:25 quite significantly.

21:27 And the other stock, I would say is that

21:29 if the investor has a three-year horizon,

21:32 then I think he could look at even large cap stocks

21:34 like Mahindra and Mahindra.

21:35 My sense is that M&M is well poised

21:37 to do significantly well over the next, say,

21:40 two to three years.

21:41 They have a well-diversified business model,

21:44 very large in the SUV segment now.

21:46 They're going to make a very strong pitch

21:47 in the electric vehicle segment.

21:49 So I think here also,

21:50 a SIP approach could obviously help them

21:53 if the investor has a timeframe

21:55 of at least three to four years,

21:56 use every market opportunity,

21:58 a decline or a correction in the market

22:01 to add to these shares in a very gradual manner.

22:03 So I think I would be more comfortable

22:05 on these two companies as of now.

22:07 My sense is that rather than having two stocks

22:10 for 50,000 rupees,

22:11 it's always better to have a little bit of concentration

22:14 on two good emerging, I mean, two good companies

22:17 which could obviously generate a decent alpha

22:19 over the next, say, three to four years.

22:20 All right, understood.

22:22 Next up, we have a viewer from Greece

22:25 and they've bought in Shyam Metallics

22:27 at an average price of 450 rupees.

22:30 Nilesh, would you suggest exiting the stock?

22:33 Let's look at where the stock is trading today.

22:36 If you can pull up Shyam Metallics.

22:38 Okay, we have, it's up about over a percent in trade.

22:43 Nilesh, would you suggest holding onto the stock

22:46 from a shorter-term perspective?

22:48 All right, Smriti, so we have seen a good amount

22:52 of profit booking after hitting highs

22:54 in about 730 odd levels.

22:56 It has almost corrected 100 point from those levels now.

22:59 After this correction,

23:01 it is approaching its immediate support zone of 600.

23:05 So yes, at current level,

23:07 one can stay put keeping stop-loss below 600

23:09 on the closing basis.

23:10 And I believe the time horizon

23:12 that somebody's looking for

23:14 slightly short to medium-term point of view,

23:16 then probably we can expect a pullback

23:18 to continue towards 680 to 700.

23:20 And 600 should be the trading stop-loss

23:23 and one can stay put at current level.

23:25 All right, got it.

23:26 Next up, we have a question from Naman Deora from Kolkata.

23:30 Now, Avinash, they bought two stocks,

23:32 Andhra Cements and Zee Limited.

23:34 Zee at 260 and Andhra Cements at 127.

23:38 They say they bought it from a trading perspective,

23:40 but they have held onto it.

23:42 But now they wish to kind of hold these two stocks

23:46 for the longer term.

23:47 Would you suggest that in both of these two counters?

23:51 - No, I think, see, my sense is that

23:54 from a fundamental perspective,

23:56 I think cement companies should do well,

23:58 but I think the choice for buying Andhra Cement,

24:02 my sense is that I would presume

24:05 that since it was a low-price stock,

24:07 the trading option was exercised.

24:09 I think here, unless the investor has got

24:12 at least a 12 to 18-month time frame,

24:15 I would not be surprised that it would take a long time

24:17 for Andhra Cement to actually generate

24:19 a significant upside from the current odd levels.

24:21 So I think if the investor can hold on for, say,

24:24 18 odd months, then I think he can definitely hold

24:26 because cement has started doing well,

24:29 and we believe that infrastructure spending,

24:31 once it starts, then cement is the first building block,

24:33 which will obviously benefit all cement companies.

24:36 But as far as Zee Entertainment is concerned,

24:38 I think there's a lot of controversy

24:41 regarding the merger of Zee with Sony,

24:45 and I think now the merger being called off,

24:47 there are some legal issues also which are being played out.

24:51 So here, I would suggest that at these levels,

24:54 unless the investor has got a risk appetite

24:56 of staying invested for the next couple of years,

24:59 the investor seems to have made a very big loss here.

25:02 So I think rather than booking a loss,

25:03 just wait for the positive developments to come out.

25:06 But clearly, I think a lot of investors

25:09 have got stuck up in this counter,

25:11 and I don't think in the very near term or in the short term,

25:13 you're going to see a big upside.

25:14 So both the stocks, I think if you have a time frame

25:17 of two years plus only, then only one could hold on.

25:20 Only then one could expect a decent risk.

25:22 But in the short term, I would not be surprised

25:24 that both these companies will remain under performance.

25:26 - Right, and now there's a behemoth of a media entity

25:30 to compete with as well.

25:32 So that's a new development in the media space.

25:34 But let's talk about SJVN.

25:37 This is for you, Nilesh.

25:38 This one's from Karthik from Hyderabad.

25:40 What are the key levels that you should watch out for?

25:41 I'm not sure if they've already bought in the stock.

25:45 Nilesh, any key levels for SJVN that we should look out for?

25:53 - Right, so if somebody's looking

25:56 from a fresh entry point of view,

25:57 then I would rather wait for further dip towards 105

26:01 or maybe below that, because the immediate structure

26:04 looks likely on a weaker note.

26:05 We have already seen the stock hitting high near about 165

26:10 and from those levels, we have constantly witnessed

26:11 a decline.

26:12 So at current levels, still I feel there could be

26:15 a small dip which may open downside towards 110 to 105.

26:20 Post then, it can be bought keeping stop-loss below 95

26:23 and then we probably can expect a pullback

26:26 to continue towards 130 to 135.

26:28 But at current level, I'm not that kind of convinced

26:31 with the structure.

26:32 I would rather wait for a breakout on the upside

26:35 towards 128, post then it can be bought.

26:37 - All right, got it.

26:38 Next up, we have a question from Sudarshan.

26:41 They're talking about Vodafone India.

26:42 We saw the company come out with a fundraise plan,

26:47 but Avinash, the stock cracked yesterday.

26:49 Now, if anyone's still invested, what would you suggest

26:52 and what do you see for the company from here on?

26:55 - I think clearly, Vodafone India is one of the most

26:59 weaker players in the entire telecom space

27:02 if you compare it with Bharti or Jio.

27:05 My sense is that this fundraising exercise

27:08 has come in after a very long delay.

27:10 And I think clearly, what kind of money is going to be put

27:14 in by the promoters, that is Vodafone and the Birla family.

27:18 I think that is something which is very important.

27:20 Clearly, the markets are not excited

27:22 because even after this fundraising,

27:24 the company will be on a weak note,

27:26 already 100 to 150 basis points of market share

27:29 has been taken away by both Bharti as well as by Jio.

27:32 I would not be surprised that at least

27:34 for the next couple of quarters,

27:36 considering the fact that 5G license payments

27:38 are going to be scheduled for early 26,

27:41 the cash flows are extremely weak.

27:43 And unless the company starts generating

27:45 good operating cash flows,

27:46 the markets are not going to be excited.

27:48 So I think it's better to exit this stock on every upside.

27:53 It's a stock which I think you should exit

27:55 because clearly in the near term,

27:57 it will definitely remain weak.

27:58 - All right, got it.

28:00 Now we're completely out of time

28:01 on this edition of Ask Profit.

28:03 Thank you so much, Avinash and Nilesh for joining us

28:05 and for answering so many questions for us.

28:07 Viewers, thanks for tuning in.

28:09 We'll be back tomorrow, same time, 11.30 a.m.

28:12 But stay tuned to NDTV Profit, lots more coming up.

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31:40 - Hello and welcome.

31:52 This is Hot Money.

31:53 I'm Agam Vakil.

31:54 A quick look at how the markets are faring

31:56 at this point in time, flat for the Nifty and the Sensex.

32:00 Currently trending largely where they closed off yesterday.

32:03 And as far as the Bank Nifty is concerned,

32:05 that is also looking at marginal losses right now.

32:08 All eyes will be on today's monthly expiry

32:10 with respect to futures as well as options.

32:12 And while it's been a quiet last one hour of trade,

32:16 well, I'm certain we can expect a lot more activity

32:19 going through the course of, well,

32:21 the balance half of this trading session.

32:24 That said, as far as your key indices go

32:27 and the constituents there,

32:29 well, we are looking at good gains

32:32 in a whole host of counters,

32:33 something which would include

32:34 something like an Adani Enterprises,

32:36 along with Adani Ports.

32:38 Both of them are advancing at the moment.

32:40 And in fact, Eminem is a top gainer right now,

32:43 which is up around 1.6%.

32:46 And then we have Tata Consumer Products,

32:47 which is also starting to look higher and move positively

32:52 as far as the underlying goes up around 1.4% there as well.

32:56 And the Maruti Suzuki is the other one advancing in trade.

32:59 What is, however, declining today is Bajaj Auto.

33:03 Even as we move ahead of the buyback date,

33:07 the final date for where the shares

33:09 could be tendered for the buyback.

33:11 We have Apollo Hospitals,

33:12 which is also down around 2.7% at the moment.

33:15 And LTI Mindtree, that's also something

33:19 which is under a tad bit of pressure.

33:20 Very quickly, let's pull up UPL,

33:23 because UPL will be one of those Nifty counters,

33:25 which will be moving out of the Nifty come 28th March,

33:29 and that will be replaced by Sriram Finance.

33:32 And Sriram Finance, of course, is the other one,

33:35 which is advancing today, but not substantially higher.

33:39 So these are some of the names that we can watch out for

33:41 as far as your benchmarks are concerned.

33:46 In the broader markets, again, very mixed cues coming in.

33:50 A considerable amount of weakness in Max Health Care.

33:53 Now, Max Health is down around 7.8%,

33:56 and it is the top loser on the Mid-Cap 100 Index.

34:01 Moving on, Prestige Estates is also under pressure.

34:03 That's down around 4.8% as well.

34:06 And besides that, well,

34:08 PTM is under a tad bit of pressure along with Trent.

34:11 So those are some of the names that we can watch out for.

34:14 But, you know, on that note,

34:17 let's address what we want to talk about today

34:20 in terms of all the stocks and all the sectors which are in focus.

34:24 Of course, we'll be talking about Hospitality.

34:26 We talked about Reliance, Disney, the tie-up there,

34:29 as well as UPL and Sriram Finance.

34:31 And to take us through the views here

34:34 for our whole host of these stocks,

34:36 we have Aastha Jain, Senior Research Analyst at HEM Securities.

34:40 That's HEM Securities who's joining us on the show.

34:42 Aastha, good afternoon.

34:43 Thank you so much for joining in.

34:45 Aastha, before I come to you,

34:47 let me get in Monal to talk to us about

34:51 the hospitals sector here

34:53 and all the updates coming through.

34:55 Monal, good afternoon.

34:57 Afternoon.

34:58 Agam, yes, hospitals are seeing pressure.

35:01 So this is on the back of a media report

35:03 and the Supreme Court hearing

35:05 that came in last evening.

35:07 So it talks about the Supreme Court directing

35:11 a common standardized rate for hospitals.

35:13 Now, it has directed the center to come forward

35:15 and do that within a month.

35:17 This would essentially mean that

35:19 they would be prescribing a rate range

35:21 within which even the private hospitals can charge

35:23 because of the amount of disparity

35:25 that is seen between the rates charged

35:27 by a private and a public hospital

35:28 for the same surgery.

35:30 So now the idea is that if this is not done

35:34 within one month,

35:35 the Supreme Court has gone ahead

35:37 and warned the center,

35:38 saying that they will implement a standardized rate

35:41 as prescribed in the central government

35:43 health service list.

35:45 So this entire thing was in response

35:47 to a PIL which was filed by an NGO.

35:50 And this is what is bringing stocks

35:52 with high average revenue per occupied beds

35:55 under pressure because if you see these,

35:58 that typically means the rate at which

36:00 the hospital earns per day.

36:02 And if that's really high,

36:03 it could also mean that their surgery costs

36:05 are higher than the peers.

36:07 So we are seeing pressure.

36:09 Of course, like you mentioned,

36:09 Max Healthcare has seen the maximum amount of pressure,

36:12 but there's a pressure that is seen on Fortis,

36:13 Yatart, Apollo, Medanta, that's Global Health Hospital.

36:17 Everybody is seeing the pressure.

36:18 - Right, absolutely.

36:19 And there's no doubt about the fact

36:20 that should we see some raining in of pricing,

36:24 well, we most certainly could have an impact

36:27 on the P&L for a whole host of these hospital companies.

36:29 Monal, thank you so much for joining in

36:31 and taking us through that update here.

36:33 Aastha, coming to you,

36:35 how are you rating hospitals at the moment

36:38 and considering what Monal has just told us about

36:41 with respect to putting some amount of pricing pressure

36:45 when it comes to hospitals and the way they charge,

36:47 would that change your view significantly?

36:50 How would you address this?

36:52 - Good afternoon.

36:53 So yes, that actor has came in as really a dampener

36:57 on the stock prices of all the hospital stock

36:59 that what we have seen right now.

37:02 But in the long term, I think definitely it's gonna impact

37:06 the financials of the hospital stock,

37:08 especially if we talk about the ARPOPs,

37:10 that is the average revenue per occupied bed,

37:12 then I think it will get significantly impacted due to this.

37:16 But we really need to see how all these things

37:18 will pan out in the later stages.

37:21 So that really need to be seen.

37:22 But the initial or a primary view,

37:25 which we are telling our clients also,

37:29 is that it might impact hospital stocks,

37:31 their financial performance.

37:33 So I think in the long run,

37:35 we really need to see how it gonna affect,

37:37 but yes, prima facie,

37:38 and what we are seeing right now

37:40 is the impact in the stock prices also.

37:42 So ARPOP can get affected

37:44 because that is the major parameter

37:46 to value any hospital stock.

37:49 So that will get impacted by this

37:51 and maybe a short term dampener

37:53 can be seen on all the hospital stocks.

37:55 But in the long term,

37:57 we find some very good quality

37:58 National India level presence hospital

38:01 to be a good portfolio performer.

38:04 So in that regard,

38:05 we are really positive on Apollo Hospital

38:07 at the present moment of a time,

38:09 but it is a long term call.

38:10 In the short term,

38:11 we think that yes,

38:12 it will really impact the hospital stocks, financials.

38:15 Okay.

38:15 Well, we move on to the second theme of this day

38:18 and that is Reliance.

38:19 Of course, we all know that Reliance and Disney

38:21 have signed a binding agreement

38:23 to form a near 70,000 crore joint venture.

38:26 Now, we also understand that Reliance Industries

38:29 will also put in an additional 11,500 crores

38:33 in terms of investments

38:35 and where the OTT services will of course

38:39 be under the same umbrella now

38:42 after the joint venture comes through.

38:45 It is really interesting because

38:48 after the joint venture comes to fruition,

38:52 we understand that Disney will hold about 36.8% stake

38:56 and the balance will be split between

38:58 Vacom 18 holding 46.8% stake

39:01 and Reliance to own around 16.3% stake.

39:04 To very quickly take you through the house use as well,

39:07 all in all, it does seem like it's positive.

39:09 Most brokerages are very sanguine about this particular deal.

39:14 However, Ilara does mention that this may hinder the ability

39:17 for global OTT platforms to raise average revenues per user,

39:22 but it doesn't seem like much of a problem

39:26 when it comes to the Indian markets.

39:28 That said,

39:29 we are likely to see a monopoly in sports.

39:31 Of course, that could always augur well

39:33 with this particular partnership.

39:35 So, more pros and cons overall.

39:38 Aastha, what is your view on this particular merger

39:42 as well as Reliance Industries as a whole?

39:45 So, first of all, this particular merger is looking,

39:49 I mean, the Reliance in its move towards scaling up

39:52 its media business, they have taken this decision.

39:55 I think that will be a positive move

39:57 for the Reliance Industries per se.

39:59 And in that regard, we are positive on the stock.

40:01 First of all, want to give the price target

40:03 that is around 3150 to 3200 in the longer run.

40:07 So, talking about this particular arrangement,

40:09 yes, it will help the company in scaling up its media business

40:13 and definitely increasing its revenue from there.

40:17 And if I talk about the other verticals also,

40:20 because we really need to see how the Reliance Industries

40:22 as a whole will be performing after this arrangement.

40:25 So, other verticals also, they are also showing

40:27 clear sign of improvement.

40:28 If I talk about Jio, definitely what we have seen

40:31 is the increase in their average revenue per user.

40:34 So, in Jio, we have seen they are showing strong performance

40:37 on the basis of increased R2.

40:39 Now, if I talk about the retail business,

40:41 Reliance has a real thrust on increasing it

40:44 and they have the target to increase it

40:45 to the threefold in coming three to five years.

40:48 So, that will again going to be performing strongly

40:50 in the future.

40:52 OTC business is already performing good

40:54 because what we have seen in the results

40:56 is the cost reduction measures which they have adopted

40:58 and due to this, we have seen the good results

41:01 or the decent results from this vertical also.

41:04 So, if I combine all these verticals

41:06 along with the media vertical in which Reliance

41:10 is scaling up its business,

41:11 then it comes at a really positive move for the company

41:14 and we are positive on this counter,

41:16 giving a price target of 3150 to 3200

41:19 in the medium to long term.

41:23 That's as far as Reliance is concerned

41:25 and of course, the big joint venture

41:28 that we are seeing through.

41:29 But we have flashes on your screen

41:32 which do suggest and that is just in,

41:34 this is of course, regarding PTM,

41:37 where SoftBank affiliate SPF India

41:39 is cutting stake in the company

Reliance Industries In Focus | Ask Profit | NDTV Profit

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