• 8 months ago
#GSPL got locked in 20% lower circuit as key brokerages downgraded the stock.

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00:00 are all about your stock related queries. So write to us on any of our social media channels or on
00:05 the WhatsApp number that will be on your screen in just a minute. You can also write to us on the
00:09 YouTube live chat and we'll take your queries from there. So even if it's a short term query or a
00:15 long term strategic investment question, do write to us and we'll get them answered by our guests
00:21 on the show today. But before we do that, let's take a quick check of where the markets are
00:25 currently at. Look at the benchmark indices doing fairly well today. Nifty 50 up about
00:31 six tenth of a percent. So not doing too bad there. Let's look at the contributors for the
00:37 Nifty 50 and see what's pulling the index higher. You see the likes of ICICI Bank, L&T, RIL,
00:44 all in the green. However, on the other end, there's HDFC Bank, obviously post its results.
00:51 We're seeing some downtick there and about 20 to 23 points down there. You have NTPC, ITC,
01:00 Maruti all in the red. But you look at some specific names like NTPC that's down about 1.8
01:07 percent. Now, this is the one in the Nifty 50 index that's losing the most. Then there's HDFC
01:14 Bank, JSW Steel, ITC, Maruti, Suzuki. BPCL is the top gainer on the Nifty 50 along with Wipro,
01:21 that's up about 2.5 percent. You have Sriram Finance as well, that's also up about 2.5 percent.
01:27 So, if you look at the breadth of the market on the index front, 44 advances, 6 declines.
01:34 But let's look at the broader end of the spectrum as well and see how the mid-cap and the small-cap
01:40 are doing. Better than the benchmark for sure. The Nifty mid-cap is up about 0.8 percent,
01:46 while the Nifty small-cap is up over 1 percent in trade. So, seems like the broader end of the
01:53 spectrum seems more positive than the benchmark itself. But let's also look at the sectors. You
01:58 have all the sectors in green today. So, nothing to complain there. You have the Nifty Consumer
02:05 Durables, that's up about 1.5 percent. You also have Pharma, Nifty PSU Bank, Realty Index,
02:14 all up over 1 percent in trade. Let's also look at some of the stock-specific action. You're seeing
02:21 GSPL, that's down 20 percent. So, has hit lower circuit and we'll come back to that on why that
02:28 is the case. You have HDFC, MCF down about 0.8 percent. Irida doing well in trade today,
02:34 up about 7.5 percent after the business update. You have Persistent Systems Post
02:39 Results down about 8 percent as well. Ramkrishna Forgings down 2 percent. Now,
02:44 Ramkrishna Forgings has been gaining in the last couple of sessions. We saw gains of about 5
02:51 percent in the last four or five sessions. And this came after they received an order from a US
02:58 EV company to supply to them. But it seems like presumably it was Tesla. But now that order is
03:06 on hold and we're seeing that impact in the stock today. We're seeing Voltas on the back of a
03:11 brokerage note. You have Zomato up about 1.5 percent because of the increase in the price.
03:19 So, they've taken their platform fees from 4 rupees to 5 rupees. So, that's the impact.
03:24 Let's circle back to GSPL, which is the focus for today. The stock is down 20 percent,
03:30 stuck on lower circuit. And we have my colleague Mihika joining in to tell us
03:35 what's happening there. Mihika, take it away. Yes. So, the Petroleum and Natural Gas
03:40 Regulatory Board has cut the tariff of one of the key Gujarat pipeline networks of Gujarat
03:46 State Petronet by 47 percent. Now, the authorized tariff is at rupees 18.1 MMBTU versus 34 rupees
03:54 previously. And this is also much lower than the 50, 51 rupee tariff that GSPL had claimed.
04:01 Now, in terms of impact, while it could lead to lower end user prices for both household consumers
04:07 as well as industrial consumers, it could put a pressure on Gujarat State Petronet's profits.
04:11 Now, the reason why the difference between what was asked and what was actually authorized is
04:18 because the Petroleum and Natural Gas Board's assumptions when it comes to volumes, capex,
04:24 and opex is very different. When you talk about the capex, Gujarat State Petronet claimed a capex
04:30 of 3400 crores, while the board only allowed 1800 crores. In terms of volumes, in terms of future
04:37 volumes, while the company assumed 26 million metric standard cubic meter per day volumes in
04:44 the future, the board approved much higher, 22 percent higher at 31.7 MMSTDMD. And then after
04:52 this tariff hike was announced, all the brokerages did turn negative on the stock. Now, we had Nomura
04:56 which downgraded the stock to reduce from a buy previously at a target price of 320, which implies
05:02 a 15 percent downside from the previous close. They've cut their FY25 and FY26 EBITDA and EPS
05:09 estimates. EBITDA estimates were cut by 37 and 42 percent respectively for FY25 and FY26. And they
05:16 did say, however, that the tariff would be renewed next fiscal if the actual volumes show considerable
05:22 variations from the board's assumptions. And then lastly, we had Kotak which downgraded the stock
05:27 rating to reduce to at a fair value of Rs.360, which implies a 22 percent downside. They believe
05:33 that a 20 to 30 percent tariff cut was due, but the actual tariff cut was much above expectations.
05:39 And they've also cut their FY25 and FY26 earnings estimates by 28 and 37 percent respectively. And
05:45 they expect the return on capital employed to decline sharply to 11 to 12 percent.
05:52 Thank you so much, Mihika, for that comprehensive explainer on the stock. Now, on that note,
05:57 let me introduce you to the guests for today. We have Sameer Dalal of Natwarlal & Son Stockbrokers
06:02 and Rajesh Palviya of Axis Securities. Welcome to both of you. Thanks for joining us on the show
06:07 today. Sameer, I'll come to you first on GSPL. We're seeing brokerages coming down hard on the
06:14 stock. We're seeing the stock stuck on lower circuit. Now, the question here is the difference
06:20 in the expectation, not just the street expectations, but the company versus the
06:26 board as well. And we're seeing that impact. So from here on, people who are holding onto the
06:31 stock, what should they do? So I don't have active coverage, but what I can definitely say is that
06:38 when there's such a big variation, you know, I did read about this note, so I can talk a little
06:42 bit about it, is that when you have such a big variation in the expectation and the price,
06:48 the profitability is going to take a very, very large impact. So now what you're going to have
06:54 is the return on equity and return on capital for this company starting to come down, given the kind
06:58 of realizations that they have. And given that this current price is not going to be very remunerative
07:04 for them, you know, you may even see some amount of volume cut, but I mean, it needs to be seen how
07:09 it pans out. But net net, rightfully so, the stock has de-acted 20% down. Somebody who's holding onto
07:16 it, obviously can't sell it today. Whenever it opens up from its selling circuit, one needs to
07:21 review what price it opens at, because at the end of the day, there is still some value to the
07:26 business, right? What they hold. So you have to see where it opens up, but prima facie, this is a
07:33 big negative. And if you're getting an exit at this current price for the time being, I think one
07:38 can take it because the upside is going to be capped in the next six months to one year, given
07:42 the fact that everyone knows that there's not going to be much profit to be made. So you might
07:47 find better opportunities, but I mean, if the circuit opens closer to 250, 240, then one needs
07:52 to review the situation at that point. All right, fair point. Let's dive into the questions now.
07:57 And if you haven't written to us, do write to us on the WhatsApp number or any of our social media
08:02 channels. Let's start off with the first one. This one is from Gattupalli Sanjay from Hyderabad. I
08:08 hope I'm pronouncing the name correctly. This is on Coal India. And even though this is a long-term
08:14 query, I'm going to come to you, Rajesh, first on this one. Now, based on the charts, I think the
08:19 price that they had written to us was slightly lower on Friday. But from a longer-term perspective,
08:26 do you have any sort of targets based on the charts for Coal India?
08:30 Yeah. So overall, the structure for Coal India is on the bullish side. And if we
08:36 analyse on the longer-term time frame, yes, we do have a bullish view on the stock. If we analyse
08:42 on the monthly chart, the stock is continuously moving in an up-sloping channel. That clearly
08:46 shows that there is a sustained buying action is taking place. Though there is some consolidation
08:52 is taking place since the last couple of weeks, but the overall structure on the short to medium
08:57 term is also on the bullish side. Till the stock is holding above 410, 405 level, I think one should
09:04 remain on the long side of trade. Once the stock manages to cross above 460 zone, then possible
09:10 really on the higher side, we can see towards 500, even 540 kind of zone on a longer-term perspective.
09:17 So I think he can hold the position. Even if he wants to add further more position, can add
09:23 above 460 once that breakout happens. All right. Fair point. Next question is from
09:29 Vaishnavi from Chennai. Now, Sameer, I don't know if you'll have coverage on this counter.
09:33 It's Gabriel and the stock is currently priced at Rs.348. However, they bought the stock at Rs.196.
09:41 From a longer-term perspective, do you have a view on this?
09:45 No, actually, we don't have Gabriel under coverage. I'm really sorry.
09:49 All right. Let me take it to you, Rajesh. On Gabriel,
09:53 they bought the stock at Rs.196, currently trading at Rs.348. What's the view?
09:59 So since last couple of months, we have seen some profit-taking happening in this stock. But
10:06 if you analyse on the longer-term perspective, yes, the stock is holding the ground on the bullish
10:10 side. Till the stock is managing to hold above 310 level, that's the important level on the
10:16 longer-term chart also. If it holds above 310, then yes, the long-term trend is likely to remain
10:22 on the bullish side. And on the higher side, once the stock manages to cross above 365, 370 zone,
10:28 then it will resume its uptrend and then possible target on the higher side, we could see towards
10:33 420 to 440 also. So overall, the structure for Gabriel is on the bullish side. He can hold the
10:40 position. All right. So hold is the advice from Rajesh on Gabriel. Next up, this one is from
10:47 Satya. And there are a couple of pharma names now, Sameer, here. And he wants to know if it's a good
10:53 time to enter into any of these. The three names are Zydus Life, Divis and Gland. What's your pick
10:59 among these three pharma names to enter? So if I had to take a pick, I would have picked Divis
11:05 in this list. Divis is not my top pick in the pharma space. And the reason I would pick Divis
11:10 in this lot is because of the API expose that they're doing. And that continues to see a lot
11:15 of traction. They did have some problems in the middle with regulatory from the US FDA where
11:22 certain criteria were not met, because of which they did have a bit of an impact on their sales
11:28 and the business. But Divis is a very strong company which will be able to address a lot of
11:32 those issues. And once they are able to start growing their export business again from the
11:37 API side, I think they will do well. So if you ask me in the pharma space, I mean, since he's
11:42 given three specific names, the person has given three specific names, I'm saying Divis. But if
11:45 they want to venture beyond just these three names, the top pick for me in the entire pharma
11:52 space still continues to remain Sun Pharma. It's again a large cap company where they are working
11:57 on the differentiation of product like brand degenerates, which can get traction, which is
12:04 beginning to see traction, and which is why we've seen the stock price move up. If that traction
12:09 continues, which we believe will give it the kind of product launches that they have. I think Sun
12:13 Pharma could be something that outperforms, but Divis from the three that you mentioned.
12:17 What price target on Sun Pharma? So I think if you look at maybe a two-year
12:22 horizon, I think you could get a 20% CAGR return over that period of two years.
12:26 All right. All right. Next counter we're talking about is Tata Alexi. This one's from,
12:31 okay, I'll try and say the name and I hope I say it correctly. It's Noshan
12:39 Kanjabdulla from Kerala. I hope I've said it correctly. And the counter is Tata Alexi. They've
12:45 bought the stock at 7,799, slightly above the current market price. And Rajesh, the stock
12:54 hasn't done too well in the last couple of months. But do you see upside from here on?
12:59 Yeah. So stock is still underperforming. If we analyze the near-term short-term structure,
13:07 stock is trading below to their important support area, moving averages. And now stock is trading
13:13 near to its critical and important support area, which is a multiple support area for the stock,
13:18 around 7,400, 7,370 kind of zone. If at all the stock breaks below 7,370, then possible down move
13:26 may extend and we can see further lower level towards even 7,100 also for Tata Alexi.
13:32 On the higher side, the major supply zone for the stock is placed at around 7,700. So until the
13:39 stock not crosses above 7,700 level, it may remain under pressure only for whatever pullbacks we are
13:46 seeing in the near term will attract supply pressure. Above 7,700, yes, there could be some
13:53 move we can expect towards 8,000, 8,200 kind of zone. But at this moment, I think 7,400 needs to
14:02 keep as a stop loss. If it breaks below those levels, then possible downside can extend further.
14:08 All right, fair point. Stay with us, Sameer and Rajesh. It's time for a quick break,
14:13 but we'll come back and take more questions. Stay tuned.
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16:45 Welcome back. You're watching Ask Profit on NDTV Profit. Let's start off with the questions again.
16:51 The first one is from Praveen Kumar from Kerala and the counter we're talking about is CDSL. They bought the shares at
16:57 645 apiece. I'm going to come to you, Sameer, on this. There's a substantial profit, notional profit,
17:05 that they're sitting on. It's currently trading at around Rs. 1,969. It has doubled in the last one
17:13 year itself. But what would your suggestion be in a case like this where there is a considerable profit?
17:21 Should you take some profits off the table or stay in when invested in a stock like CDSL where the future seems positive?
17:29 So definitely the future is very positive and it's a great company. Strong balance sheet, no requirement of additional capital per se.
17:39 The growth has been exceptional over the last couple of years given the fact that new D-PAT accounts have opened,
17:45 which is at the end of the day what generates revenue for a CDSL. But what has also happened simultaneously,
17:51 what you rightfully said, is the stock has run up quite a bit. And because the stock has run up so much, I think the valuations
17:57 have probably moved above where our comfort zone remains. So as much as I say that I like the stock from a long-term point of view,
18:06 for the next five years, because I still think there's a great opportunity for D-MAT accounts to be open.
18:12 Once you have someone like a geofinancial getting into the broking business, I don't know whether they use an SDL or CDSL,
18:20 but let's assume, what I'm trying to say is the reach of the broking industry is going to keep increasing,
18:27 which means more D-MAT accounts opening. But for the near term, I think a lot of the valuation from the upside has been captured.
18:36 So maybe one can look to book some profit in the near term. But yes, if the stock comes closer to the 14, 1500 levels,
18:43 I would definitely look to buy the stock back. The question is only I don't know whether it will come down to those levels.
18:48 But at this point, I mean, I'm not comfortable holding it given the valuations. I think, again, there are companies
18:55 which cater to the same equity market kind of scenario, which can probably generate better returns.
19:01 All right, fair point. The next counter we're talking about is HDFC Bank. It's a little weak today in trade.
19:08 But this is from a shorter-term perspective, from a three-month perspective, Rajesh. This one's from Surjay from Kolkata.
19:14 Now, we've seen Q4 results, deposit and NIMS growth seems positive. But on the technicals, how does it look from a three-month perspective?
19:22 So if it's for short-term, yes, stock is showing buying interest on the downside.
19:30 1514.80 is the important support area for the near-term to short-term perspective.
19:36 If you analyze on the weekly timeframe, the stock is moving in an upsloping channel.
19:40 Though there is a major supply zone, it's placed at around 1540-1550 zone.
19:45 That is a major hurdle for the stock on the higher side. If the stock manages to cross above 1550 zone,
19:52 then possible short covering may trigger in this counter and then upside target we could see towards 1600 to 1620 also.
19:59 So as he has invested for short-term perspective, I think he can remain invested.
20:04 Keep your stop-loss now at around 1480 to hold your long position.
20:08 Alright. Next counter we're talking about is Amber. And this one is from Rahul from Delhi.
20:15 They bought the stock at 2000 levels. The stock is currently trading above 3600 levels.
20:20 Sameer, somebody here as well, a decent amount of profit that you're sitting on.
20:25 You see the stock almost doubled in the last one year itself. What kind of upside do you see from a longer-term perspective?
20:33 So from a long-term perspective, again, very, very bullish. It's a similar story to CDSM.
20:38 I still believe, not that the business model is the same. What I'm saying is the upside over a long term is the same.
20:43 Given the fact that the penetration of electronic goods within the country is only going to keep increasing,
20:48 replacement demand growing, Amber Enterprises being one of the early boosters,
20:52 their mix of technologies, both are going to be beneficiaries of the growth in consumption,
20:58 especially the discreetly consumption that happens over the next five to seven years.
21:03 Again, the same problem is where I face is again, the valuations that probably move way beyond,
21:09 and I mean way beyond our comfort zone. So to justify this valuation,
21:14 I need the profits to be at least 1.8 to 1.9 times of where it is.
21:20 There I would find some. So maybe, you know, one year, one and a half years down the line,
21:24 if the growth numbers pan out the way I think the street is expecting and we get no hiccups along the way,
21:31 and the stock is at a similar price, it may be something that I look at.
21:35 But at this point of time, I'm not looking to invest in it. If the person has some decent profit,
21:40 once again, take a little bit of profit. You can hold on to some amount of it and take some profit off the table.
21:46 Look for the opportunities and maybe, you know, one year down the line,
21:49 if we see the stock has either corrected by 20, 25 percent or the earnings have grown by 20, 25, 30 percent,
21:57 then one can maybe look at even re-entering even at the same price, but one year later,
22:02 because that money can be used to generate another 15, 16 percent return over that one year period.
22:08 All right. Fair point. Next question is from Rashida. This one is on Anoop Engineering.
22:13 The question is, should this stock be bought after its X bonus date of 23rd April?
22:20 Let's first take a look at how the charts look in this particular stock.
22:24 So, Rajesh, Anoop Engineering, how does it look right time to buy into the stock?
22:30 So, very strong structure across all time frame. The way stock is holding the ground at higher level,
22:38 whatever minor dips which we are getting in this stock is attracted by the buyer's interest.
22:43 So, I think those who are already holding the position can hold and we could see another runoff really in this stock
22:50 and possible upside target we could see towards 3700, even 3800.
22:55 The way stock is moving up across all time frame, we believe that whatever minor dip if you are getting in this stock
23:01 should be used as a buying opportunity on the downside. 3300, 3350 are the important level for near term to short term perspective.
23:10 If you get opportunity to buy this stock around those levels should be used as an opportunity.
23:15 On the higher side, 3700, 3800 could be the possible target going forward in this stock.
23:20 All right. Next counter is Persistent System. Now, this is losing intraday today. It's down over 8 percent.
23:28 This one is from Ramanandan from Hyderabad. Sameer, we saw the results, decent revenues, decent profits,
23:36 some bit of pressure in margins but lower TCVs. Does this give you a picture of the mid-cap IT space
23:43 and specifically on this counter, would you say that this is a buying opportunity at this juncture?
23:50 No, I don't think Persistent is a buying opportunity at this moment.
23:54 So, you know, for some time now, we've been saying that the IT stocks have probably got another year,
24:01 year and a half of period where growth is going to be low. Now, to say that you want to value these companies
24:08 at 20 plus, 25, 30 times earnings is something that's unjustifiable when you're talking of revenue growth
24:15 of anywhere between 1 to 7, 8 percent for most of the companies. Persistent has of course done better,
24:21 much better than the rest of the industry. Hence, the stock has actually seen such a strong run up
24:25 over the last year. But again, what you rightfully said, you know, in the question was that the total contract value
24:32 that they have won for the current quarter has come down, which indicates that there is a bit of a slowdown
24:37 and that slowdown is going to persist for another six months to a year,
24:41 till things start seeing an uptake and still there is some more clarity on what is happening
24:47 in the geopolitical situation globally. So given those facts, I think giving premium valuations
24:53 to the IT sector is not justifiable. Even though these are very good companies,
24:59 which are spitting out great amounts of cash, you see them doing buybacks, giving it back in the form of dividends.
25:05 I still believe that valuations is something that you have to look at, not only valuation, but also growth.
25:12 Why should you get that valuation when your growth is as tepid as it is?
25:17 You know, people talk about because of AI that their cost of operations will come down
25:22 because a lot of the automation will take care of some of the requirements of staffing,
25:26 which will lead to operational efficiencies. But we really need to see that playing out.
25:30 And I don't think we're going to see any of that really playing out for the next six months to a year.
25:35 So I think over the next six months to a year, whenever we see things happening,
25:39 maybe IT is something that we will look at to buy. Persistent valuations have moved up again quite a bit.
25:45 It's not a buy according to me in this moment.
25:47 All right. Fair point. Now, unfortunately, we're completely out of time on this edition of Ask Profit.
25:53 Thank you so much, Sameer and Rajesh for joining and for answering so many questions for us.
25:57 And viewers, if you were not able to take your questions today, we'll try and take them tomorrow.
26:02 But I hope that the questions that we did take, the counters that we did speak about will be of help to you.
26:08 But that's all that we have on this edition. But don't go anywhere.
26:12 We have lots more lined up for you on Indy TV Profit.
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26:51 I do hope all of you are going to go out and cast your vote, and especially the youth of the country
26:57 and the youth and the corporate citizens, people who work in our urban centers and companies.
27:02 You know, we are the, you know, in many ways, we actually are the generation which is going to build the country.
27:09 You know, our parents spent their whole life building roti, kapda, makan for us.
27:13 And our grandparents fought for independence.
27:16 So, it's actually our responsibility and our destiny to build the country to the India of our dreams.
27:22 And we do that by working hard every day. But we also have to do that by participating in India's democratic and political process.
27:30 And it's the world's biggest festival of the power of a vote and the power of a citizen.
27:35 So, I do hope all of you get out and vote. It is not just our responsibility,
27:40 but it's also our core participation in building the future country of our dreams.
27:44 And I am today pledging to vote. My vote is in Punjab on 1st June.
27:49 So, I am pledging here to vote and I do hope all of you do the same.
27:53 So, I am going to just sign this pledge to vote.
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30:34 Benchmarks continue to extend gains.
30:36 The Sensex trades above Rs 73,500 while the Nifty crosses Rs 22,300.
30:41 A sea of green across sectors, PSU Bank, Realty and Consumer Durables emerge as the top gainers for the day.
30:49 And GSPL hits lower circuit as the Petroleum and Gas Regulatory Board cuts key Gujarat pipeline tariffs by 47%.
31:01 That is 64% below the company's expectations.
31:05 More earnings on the radar. You have Reliance Industries and Mahindra Logistics.
31:11 Both expected to come out with their March quarter numbers today.
31:15 And Hong Kong's Food Regulatory Body recalls three MDH and one Everest spice mix after detecting cancer-causing ingredients.
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31:41 Good morning and welcome. I'm Harsh Saita. You're watching Hot Money on NDTV Profit.
31:46 Quick check on where markets are at. You're seeing the Nifty trade very close to the day's high.
31:51 Above the 22,300 mark as we speak. Of course, the day's high came in around the 22,340 mark.
31:59 So, very close to the day's high after inching lower at least in the first hour or so of trade.
32:07 Let me quickly take it to some constituents which are doing quite well in trade.
32:11 You're looking at the likes of an ICICI bank knocking off the loss which is seen on HDFC Bank at least on the Nifty contributories today.
32:22 So, you're seeing 20 points contributed by ICICI Bank up roughly 1.4% in trade.
32:28 The other one gaining well is Axis Bank as well as Larsen and Toubro.
32:32 Those are the other two which are gaining fairly well in trade.
32:35 Within the Nifty 50 pack, you have also some traction which is seen in BPCL, Ayesha Motors, both of which are up 3% plus in trade.
32:45 And you also have the likes of Atata Consumer and SBI Life.
32:48 But the breadth of the market is extremely strong. If we can have the advance decline, you have 45 advances on the Nifty 50 itself.
32:56 And the advance decline in front of you clearly showing that the breadth of the market is extremely strong.
33:01 Because the broader markets too are doing fairly well, in fact, outperforming the Nifty 50 in trade today.
33:07 So, you're seeing good traction in broader markets.
33:09 The Nifty Mid Cap up around 9/10 of a percent in trade and the Nifty Small Cap too up over a percent, 1.2% in fact, in trade today.
33:19 So, good traction across the larger caps as well as the mid and the small caps.
33:24 Within sectors, first let's focus in on the Nifty Bank up around 2/3 of a percent.
33:29 But outside of that, good traction seen in the Nifty Pharma and Nifty PSU Bank, both of which are the lead gainers along with the Nifty Realty Index.
33:38 So, Nifty PSU Bank up around 1.8, Realty up around 1.4 and Pharma up around 1.3.
33:45 So, those are the top gainers for you.
33:48 No losers, you're only seeing a carpet of green.
33:52 Of course, Nifty Consumer Durables is up 2+ percent.
33:56 So, that's the one other one which is in focus.
33:59 But quickly moving on, we'll shift to the five stocks that we focus in on every day on hot money.
34:06 And let me first try and highlight some of those stocks.
34:10 You have GSPL, no surprise there, going to be a knock definitely over the next one year with regard to tariffs.
34:18 Spark, plenty of news happening.
34:21 We'll try and break that down a little bit more because one of their drugs has been taken off and that may impact and it's impacting the stock price.
34:30 HDFC Bank on the back of numbers.
34:32 IT stocks, Wipro and Persistent, a tale of two, you know, both stocks have moved in different directions in trade today.
34:41 You have Hindustan Zing and Voltas among the other buzzers.
34:43 So, these are some of the stocks that we'll focus in on.
34:46 And I have with me today Ashish Maheshwari, who is the director at Arihant Capital Markets.
34:52 And we're going to try and break some of these stocks down.
34:56 Now, welcome to the show, Ashish.
34:57 Thank you very much.
34:59 Right.
35:00 First up, Spark.
35:02 It's hit lower circuit.
35:04 Company has halted its Parkinson's drug trial.
35:08 Varsha joins us with the details.
35:10 Varsha, what's the kind of impact that this will have on the numbers?
35:15 Going forward.
35:16 Well, thanks, Harsh, on that.
35:18 So, yes, Sun Pharma Advanced Research have locked in another 5% lower circuit today.
35:24 Now, with today's move, the stock is down 19% in last five trading sessions.
35:29 Now, this is on the back of company halting their Parkinson's drug trial.
35:33 Company has ceded phase two study on Vodabatini, which is again a drug for Parkinson's.
35:39 Now, company had completed review of 442 patients who finished part one of the study by March 2024.
35:47 And the primary goal of the study was to show an improvement in the systems.
35:50 But the study showed no evidence of treatment benefits in patients who received this drug.
35:56 As a result, the company decided to close the study.
35:58 Now, if you see the estimated peak sales of this drug for Parkinson's disease is around 5 billion US dollars.
36:06 Now, company did a call wherein they said that it will look to out license this drug.
36:10 And there have been consistent interest from larger pharmaceutical companies as of today.
36:15 So let's see what happens, you know, what pans out for this company.
36:19 So this is all we got on Spark as of now.
36:22 OK, thank you for that, Varsha.
36:25 Ashish, let me switch over to you.
36:27 Spark, the stock itself has nearly doubled before cooling off 20 odd percent down over the last few sessions, as Varsha highlighted.
36:37 What's the sense at this point, especially with regard to fundamentals?
36:43 How would you look at this development which has come through?
36:48 These research companies which are very focused towards pharma research or research of new drugs or new molecules.
36:58 If you are investing in such companies, the highest high return.
37:03 So we have seen this top from 180 to almost 470.
37:09 And as soon as the negative news came,

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