Ask Profit | Brigade Enterprises In Focus | NDTV Profit
-#BrigadeEnterprises shares surge 11% after Q1 profit jumps four-fold
-#Nifty, #Sensex fall in trade
Get all your stock-related queries answered by our technical and fundamental guests with Alex Mathew on Ask Profit. #ndtvprofitlive
-#Nifty, #Sensex fall in trade
Get all your stock-related queries answered by our technical and fundamental guests with Alex Mathew on Ask Profit. #ndtvprofitlive
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02:25Hi, thanks so much for joining in.
02:26You're watching NDTV Profit.
02:28This is Ask Profit, and my name is Alex Mathew.
02:31This show is geared towards getting you answers
02:33to all of your stock-related questions.
02:35So, to that end, if you've got questions for us,
02:38you can send them to us on that WhatsApp number
02:40that you see at the bottom of your screen.
02:43Before we get to those questions, though,
02:45let's take a look at the markets and where they are right now.
02:49We had a stellar start to the trading session
02:52and quite the bounce from yesterday's sharp slide
02:57and sharp declines, but we are off the high point of the day.
03:01In fact, we are trading with gains of about three-quarters
03:04of a percent for the Nifty 50,
03:06and it is trading above the 24,200 mark,
03:11but we have given up ground.
03:13In fact, we were down about 200 points
03:18from the high point of the day.
03:20We've recovered from that as well.
03:23The broader markets are trading with gains as well,
03:26and in fact, at this juncture,
03:27they're doing better than the benchmark.
03:29The Nifty mid-cap is up as much as 1%,
03:33and the small-cap index is up as much as 1.4%.
03:37Most sectors are currently in the green,
03:39but the Nifty bank has given up ground,
03:41and you will probably see that some of the declines
03:46for the benchmark are led by those banking names.
03:49Right now, the Nifty bank trading is just about flat,
03:53or rather, in fact, it was flat last I checked.
03:56It might just have changed.
03:57In fact, there you go.
03:58It is just about flat.
04:00It has recovered again from the low point of the day,
04:03but take a look at the contributors on the Nifty 50,
04:06and you will see an interesting picture here.
04:09Reliance Industries leading the gains
04:11purely by dint of the weight that it has on the benchmark,
04:15and you have HDFC Bank on the other side of the spectrum,
04:18which is losing ground, not by a very large margin, remember,
04:22but it is proving to be a bit of a drag.
04:26Lassen & Toubro, TCS & Infi are the other gainers.
04:30Bharti Airtel losing ground as well as ICICI Bank,
04:33and I told you that the financials are not doing
04:35particularly well in trade today.
04:37Overall, the market breadth as a whole is tilted
04:40in favor of the advances,
04:42and quite the opposite picture from what you saw yesterday.
04:46Of course, yesterday it was even more stark
04:49in favor of the declines.
04:51But let's talk about the stock in focus,
04:53and it is, in fact, Brigade Enterprises.
04:55This is on the back of earnings,
04:57and the stock is doing particularly well in trade.
04:59Of course, here too, it is off the high point of the day,
05:02but all the same, it's trading with gains of over 5%.
05:06We've got Anushi joining in to set us up
05:09with what the latest development is.
05:11Anushi, the numbers stood out as quite positive, right?
05:15Right. So, now, if you have to look at Brigade Enterprises'
05:18numbers for Q1, quite a set of decent numbers
05:21that we are looking at.
05:22The revenue saw about a 65% jump to Rs 1,078 crore,
05:26while the EBITDA also in line with the revenue growth
05:28saw about a 67% of a jump.
05:30So, both of these metrics are above the Bloomberg estimates
05:34of Rs 1,031 crore and Rs 273 crore, respectively.
05:37Margins also moved upwards to 27% as compared to 26.8%.
05:42And net profit, though it recorded about a 3.6X jump
05:46to Rs 80.5 crore, this was still below the expectations
05:49of Rs 97 crore.
05:50But this was on the financial metrics part,
05:53but even if you look at some of the other key metrics,
05:55which is the pre-sales, or rather the sales booked
05:58for projects under construction,
05:59the pre-sales saw about a 9% growth at Rs 1,086 crore,
06:02while the pre-sales volume rose to about
06:051.15 million square feet as compared to
06:071.46 million square feet.
06:09Now, taking this into consideration,
06:11the average realisation for the same stood at about
06:13Rs 9,483 per square feet.
06:15But over here also, if you look at the segmental-wise performance,
06:19again, the growth that we are seeing is led by
06:21the realty segment, seeing about a 105% growth,
06:24followed by leasing revenue, which saw about a 23% growth
06:28and hospitality revenue, clocking in a 11% growth.
06:31But on the other key developments for the company also,
06:34that we should be watching out forward,
06:36the company has also signed an agreement
06:38for new office space in Bangalore.
06:39From year-end, they expect to see a lease income
06:42of up to Rs 100 crore per year,
06:44and they'll be investing Rs 750 crore for the same.
06:47So, while Brigade is in focus today,
06:49if you look at its stock performance over different periods,
06:52in the last one week and one month,
06:55it has seen some weakness, 6% of a downtick,
06:58while in one month, it has seen about a 9% of downtick.
07:01And if you take the six months' concentration,
07:03the stock has seen about 12% gains.
07:05So, this is all that we are gathering on
07:07in Brigade Enterprises as of today.
07:09All right, Anushi, thanks so much for getting us those details.
07:12Of course, there is something else that is also buzzing
07:15in the real estate space.
07:16Whether or not this is true is another matter.
07:19There could, in fact, be a review of the LTCG on real estate.
07:23No confirmation, remember, of that,
07:25but the Realty Index as a whole has been in focus all morning.
07:29Aastha Jain of Hame Securities,
07:32as well as Swati Hotkar joining in this morning
07:36to answer all of your questions.
07:37Thanks to the both of you for taking the time.
07:40Pleasure, as always, having you on the program.
07:42Aastha, I'll come to you first on Brigade Enterprises.
07:45What did you make of the earnings,
07:46and what's your view on the stock?
07:49Hi, good afternoon to both of you.
07:52Yes, talking about this counter, definitely,
07:54the price momentum today is a reflection of the earnings
07:57and the strength in the earnings which this company has posted.
08:01So, on the back of me,
08:02I know that there is a strong growth in their sales
08:05because 65% of their basic business is only real estate
08:10followed by these rentals and then hospitality.
08:13So, if I talk about this business of real estate,
08:16they have shown strong, strong growth.
08:18Now, on the basis of the robust booking,
08:20their launch pipeline is very strong.
08:23So, I think in future also,
08:24we will continue to see strong momentum in their earnings
08:28from this counter.
08:29And hence, we are positive on this counter.
08:31There is only one concerning thing about this is
08:34the premium valuations, which it is quoting right now.
08:37So, that is the only reason that we have not seen
08:40this stock performing so strongly in past few days.
08:43But now, after this earnings,
08:45definitely, the stock has gained momentum.
08:47So, our idea here is to stay invested in the counter
08:51with an initial price target of about 1300,
08:54but that too in the medium to long term
08:56because right now, premium valuations are already there
08:59in this counter.
09:00So, it is a medium to long term buy call from our side
09:03for the possible target of 1300.
09:051300. All right.
09:06The stock is very close to that 1200 mark.
09:09So, not a tremendous upside from this point.
09:12Let's jump into the queries.
09:13And just a quick reminder,
09:15you see that number at the bottom of your screen.
09:17If you are sending us a question for the first time,
09:19do tell us your name and your location.
09:21It will help you identify when we take up your question.
09:24The first one we are taking today is from Sahil
09:26and he is asking about a company in the automotive
09:29ancillary space.
09:30He is talking about Madasan Wiring.
09:33And this is an interesting stock, of course.
09:36It is currently trading higher by four-tenths of a percent
09:39at about 70 rupees.
09:41The question is for the long term prospects though
09:44and for the next two years.
09:46Aastha, would you have a buy call on this?
09:50So, for next two years, right now,
09:52I think one can just wait for some more decline to come
09:56and then make an entry into this counter.
09:59Because long term prospects are very strong.
10:01But right now, the kind of market conditions we are looking,
10:04I think some decline can come in case if markets will not behave
10:08in the manner in which they are behaving right now.
10:11I mean, if they decline more from here.
10:13So, talking about this counter,
10:15I think they have the diverse range of wire harnesses.
10:19And in fact, their technology is very strong.
10:22So, I think going ahead, definitely this company will prove
10:25its mettle in their financial performance.
10:28But market conditions are like that only.
10:30That's why I am recommending buy and hold strategy.
10:33Not right now.
10:34Maybe at the fall of around 65.
10:36This stock is a better buy option.
10:38With a price target of 80 to 85.
10:41Okay.
10:42Again, not a considerable upside based on the fundamentals.
10:45I am coming to you for the next one, Swati.
10:48And this one is Zee Entertainment.
10:50We've got Salim from Andhra Pradesh
10:52who is holding Zee, 4,000 shares, bought at levels of 177,
10:57which is elevated levels.
10:58And the stock is currently trading at 136 or thereabouts.
11:02Would you suggest holding on or would you book a loss?
11:07He's asking, when can he recover his buy price, if at all?
11:12Good morning, both of you.
11:14Definitely, the view on particular Zee media is a little bit cautious.
11:17Why I'm saying that?
11:18Because from the year of 2020,
11:20we are continuously facing a selling pressure.
11:23The stock is trading near by its low level.
11:26We are witnessing a double bottom near by 114, 120 levels.
11:30So, downfall, as of now, it's very restricted.
11:34Downside, it can come down up to 120 to 115 levels.
11:38So, I would not suggest to sell or to book the losses at the current market price
11:42because the risk-reward ratio is favorable at the current level to average it out.
11:47So, if you are getting any dips towards 115 level,
11:50you can buy or average this particular counter.
11:53I believe we might see some turnaround after forming some sort of a bottom
11:57near by 115 level.
11:59And we might see some pullback rally towards at least 240 to 230 levels on the higher side.
12:04So, at the current level, I would suggest to hold on or to book the losses.
12:08Okay, we've got Rohan Sharma who's got the next question.
12:11REC took a bit of a battering in trade yesterday.
12:14He's bought at levels of 587.
12:17And one of the concerns, I think, has been the unwinding of the yen carry trade
12:25and how it relates to the access to capital.
12:28Swati, or rather Aastha, I'm not sure how this affects the fundamentals
12:32because a lot's been said about the lending in this space, in the electrification space.
12:39Would you say that you should hold on?
12:41It's more or less at the market price from what I can see.
12:44Yes, so I think hold is a better option at present moment of a time
12:48because I don't want that the investor should make any sort of losses
12:51by exiting round right now.
12:53So, talking about this counter, yes,
12:55rural electrification corporation, as we all know,
12:57it is into that only the funding, et cetera, of railways.
13:01And we think that definitely some numbers can be muted going forward.
13:07But in the long term, the kind of demand is there.
13:10I think it will not going to affect the financials of the company.
13:13And in the short term, maybe the coming quarter can be a muted set of number.
13:17But going ahead in the long term, we can see again strength in the counter.
13:21So, my idea here is to stay invested in the counter.
13:24Initial price target which I can attribute to this counter is 620 to 630.
13:28Right now, I'm giving short targets because we are really cautious about the market.
13:32So, I'm not giving any big targets to any of the queries today.
13:36But I think 620, 630 can be attributed to this counter.
13:39Okay, that's a fair point. And thanks for that clarification.
13:42We've got Jammu and Kashmir Bank to talk about next.
13:44And we've got Khursheed who's tuning in from Srinagar in Kashmir.
13:49And he's bought 20,000 shares at a price of Rs. 76.
13:54So, he's in the green right now. The stock is up as much as 2.8% in trade today.
13:59The question is, what are the long term prospects?
14:01And he's defined this as two years, Aastha.
14:04On the fundamentals, would you hold on?
14:06Yes, for sure. J&K Bank is looking strong in the long term.
14:11Because here the time horizon is two years. So, no need to worry.
14:14The only thing which we have to see right now, how the deposit mobilization is being done.
14:19And for that, how the deposits are coming into the bank.
14:22Because that is the key concern for all the banks across the board.
14:25So, we really need to see that.
14:27For the coming two quarters, we really need to see how the deposit situation is.
14:31But again, if I talk about the other parameters, I think their asset quality is okay.
14:36It is into the fine shape and we can see some sort of increase in the margins also going ahead.
14:42So, from the long term perspective, it is a hold from our side.
14:45Initial price target, again, which I am attributing right now to this counter is around 135 to 140.
14:53Okay. Gale is the next counter that we're looking at.
14:57And I'm just pulling up the charts as we speak.
14:59It is up as much as 38%, 38.5% for the year to date, 2024.
15:05We've got Ramesh Walia from Chandigarh, who's bought at levels of 220.
15:09The stock is currently trading at 229, not too far away from the buy price.
15:15The question is, for the next one year, what are the prospects?
15:18What are the key levels to look at?
15:20And Swati, what is your advice on this particular stock?
15:23See Alex, the counter is really doing very well.
15:26From the 2023, we check out the rally from almost the stock has given a breakout for 120.
15:32Non-stop, it has rallied up to 240 levels.
15:34So, at the current level, profit bookings cannot be denied.
15:37But probably the profit booking can be, we will be seeing at around up to 200 levels.
15:42And again, we will see some bounce back rally.
15:44The overall technical setup is really positive.
15:47We are not showing any, the charts doesn't show any sign of a reversal from the high assets.
15:52As long as it's just trading in the upward rising channel.
15:55So, at the current level, you can definitely hold on the long positions.
15:58I believe 210 is the immediate support level.
16:01So, as long as the particular counter holds that level,
16:04definitely one can go for a long position, hold each long position for immediate target of 270 to 280 levels on the high side.
16:11All right. Let's pull up Adani Green and see where it's currently trading.
16:16And this is a question from Uttar Pradesh.
16:19And Utkarsh Singh is asking about it.
16:22It's currently trading at just under 1800.
16:25And we've got Utkarsh who has bought at significantly elevated levels.
16:32What's the view on the charts though, Swati?
16:35If you have bought at elevated levels, and if you have the patience, would you hold on to this?
16:41Alex, as of now, the stock is in the formation of an up-and-handle pattern, which is being formed in the monthly charts as such.
16:50Now, it is under the formations of the handle pattern.
16:53So, we are getting very sideways momentum in the last few three to four months session.
16:58It's got stuck within the range of 1700 to 1900 in between 200 points.
17:04It is consolidating.
17:05A breakout on either side will decide the clear trend of this particular counter.
17:09I would suggest to hold on because as long as 1700 levels are intact on the closing basis, I believe we might witness some more rally.
17:17Initial targets will be 1900 above that level.
17:20Definitely, a swift rally can be seen towards to 2400 or so.
17:24So, if you are looking for a longer term horizon or a little bit shorter term horizon, definitely, you can hold on this particular account.
17:30Just a clarification, Swati, because I was not sure of the buy price.
17:35He has bought at all-time highs or very close to all-time highs.
17:38He says his buy price was 2800.
17:41So, with that information, would you still hold on?
17:44Yes, definitely, I will hold on because 1700 is acting as a very crucial support level.
17:51So, till the time he has kept the long position, I would suggest to wait for more times.
17:55We might witness some turnaround in this particular counter.
17:58So, take more 70-80 points risk and hold your long positions and wait for the turnaround levels.
18:03All right.
18:04Just a standard disclaimer, this is NDTV Profit, part of the NDTV Group, which is owned by the Adani Group.
18:11We have to slip into a very quick break.
18:13We will take more of your questions on the other side.
18:15So, do stay tuned.