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00:00Hello and welcome to NDTV Profit. I'm Meeka Barve and you're watching Ask Profit, a show
00:20where we get all your stock-related queries answered from our fundamental and technical
00:24guests. And you can send all your queries on the WhatsApp number that we have flashing below.
00:29But before we get on to that, let's just take a quick look at how markets are faring right now,
00:32where we do have the Nifty 50, which is almost 0.13% in the green when you talk about the counters
00:40that are contributing to the benchmark gains. We have stocks like Hero Motors, which is the
00:45top gain on the Nifty 50 today. It's up 2.6% in trade right now, as well as Britannia and Bajaj
00:51Auto that have seen gains of over 1%. Some of the counters that aren't doing so well on the Nifty 50,
00:56well, we do have Tata Motors, which is down and under pressure, but cuts of 2%, as well as some
01:02weakness in stocks like BPCL and Adani Post, which are both down over 1%. But when you look at the
01:08broader markets, they are the underperformers today. And there's the Nifty Small Cap 250,
01:12which is seeing intense pressure right now. It's down, cuts about four-tenths of a percent.
01:16When you look at the counters that aren't doing so well on the Nifty Small Cap,
01:22well, we do have Godfrey Phillips that's under pressure. It's down about 6%, as well as
01:27weakness in Home First, Upper Industries, as well as Triveni Engineering. Some of the counters that
01:33are doing well, well, we do have Blue Dart, which is up almost 10% in trade right now,
01:39as well as Himadri Chemicals. And two of the counters that are buzzing are actually
01:44Managar Gas and Indraprastha Gas. And this is on the back of brokerage note that we will be
01:49addressing at the start of the show. When you look at the sectoral indices and you look at the
01:54top gaining sectoral, whereas the Nifty IT that has shown strength today, it's up about four-tenths
01:59of a percent. When you look at the counters that are gaining on the Nifty IT index, well, we do
02:05have Persistent Systems, as well as Tech Mahindra. The sectoral index that's not doing that well
02:10today is the Nifty Media and the Nifty PSU Bank. And Nifty Media is down about almost 1% in trade
02:15today. And we only have one counter on this index that's in the green, and that's Saregama.
02:20Well, we have TIPS Industry and BVR INOX would have seen immense pressure. But the first, you
02:25know, counters that we will be addressing today are the city gas distribution stocks. And this
02:31is Indraprastha Gas and Mahanagar Gas in focus, and both have been buzzing in trade right now.
02:38Well, this is on the back of a UBS note where consolidation, they've spoken about consolidation
02:43in the CGD sector. Now, they expect the Indian city gas distribution space to consolidate and,
02:49you know, pressure of infrastructure targets, gas sourcing challenges are expected to drive
02:54the consolidation going forward. And they believe that IGL and MGL have stated their intentions to
02:59participate in this very trend. Now, UBS on Indraprastha Gas, well, they've upgraded the
03:03rating from a sell to buy at a target price of 700 rupees, which implies a 32% upside on the
03:09counter. And they've said that the infra-expansion and new geographies will drive volumes going
03:14forward. And they've also raised the FY26 and FY27 volume estimates by 1 to 3%. They've also said
03:20that the valuation, believe that the valuations do not reflect the inorganic growth opportunities
03:24presented for Indraprastha Gas, and the market is pricing in too much of the EV risk. When you
03:29talk about Mahanagar Gas, well, they maintain the buy rating as well. They've raised the target
03:32price to 2,400 rupees, which also implies a upside of 32%. They expect elevated volume trajectory
03:39going forward. And as for valuations, they do not believe that Mahanagar Gas's valuations are
03:44demanding and the stock's re-rating partly reflects inorganic growth is what UBS has stated.
03:52But now let's just go on, you know, welcome our guests for today. We're joined by Aastha Jain,
03:55who is the Senior Research Analyst at HEM Securities, as well as Swati Hotkar,
03:59who is the AVP Technical Research at Nirmal Bank. Good morning and welcome to the show.
04:04You know, first, Aastha, I'll come to you, your view on Citigas distribution.
04:09Hi, good morning to both of you. Talking about this counter, actually, we are really positive
04:14on this counter, although the financial, which they have posted in the Q1 of FY25,
04:18were not very strong because we have seen that they have shown the deep growth in their bottom
04:22line. But what is positive about these companies is that now the volume growth is showing a very,
04:29very strong trend in both of these companies. And that has been also reflected in the Q1 FY25
04:35on the top line front, because bottom line, I'm seeing there was some sort of deep growth.
04:39And now the company has also plans that they will continue to increase on their volume part. This is
04:46I'm talking about specifically about Mahanagar Gas. So, I think volume growth is very important
04:52for them and now they have a plan to continue that sort of volume growth. So, that will really
04:56be helping the company showing strong financial performance. We are positive on this counter,
05:01although we have seen that the increased cost has downsided the margins. But going ahead,
05:07we believe that the cost reduction will be there. So, we are positive on Mahanagar Gas at present
05:12moment of time and recommending a hold, not a buy, because we really need to see Q2 of FY25
05:18results. After that, we will update our ratings. But as of now, recommending hold, initial price
05:23target can be set at around 2100 odd levels. A hold for Mahanagar Gas for those who are
05:29invested. But let's take on the first query from our viewers today. The first one is from
05:32Pardeep Saini, who is holding 97 shares of Cochin Shipyards at a price of Rs.1880. And he is asking
05:39whether he should hold his position or sell his position. Swati, I'll come up to you now.
05:46How does Cochin Shipyards look on the charts?
05:49See, as of now, the view is little bit cautious on this particular counter because from the last
05:53three to four months, we are continuously witnessing a selling pressure from almost
05:572900 to now it's 1700, up to that level. I believe that as of now, the counter is just
06:03entering into the oversale zone. So, it might find some good support nearby 1700 or 1720 levels. And
06:09then onwards, we can see some reversal signs from the support levels and which might take a counter
06:14towards to 2000 or 2100 levels on the high side. If you are looking for a longer-term horizon or
06:20the shorter-term period, at least for three to six months, then definitely you can hold on by
06:24maintaining a stop-loss for 1700 on the downside. And I'm looking for a pullback rally towards to
06:292000 to 2100 in a short period of time. Okay, thank you. The next question is from
06:34Shashi, he is from Bengaluru. Now, he is holding 100 shares of JK Tyres at a price of 396 per share.
06:41And he's asking whether he should hold or sell. He's currently making a profit of around 4000
06:45rupees. Asal, come to you fundamentally, what's your view on the tyre sector and JK Tyres in
06:50specific? So, we are positive on the sector fundamentally also and we have seen that in
06:55the past also JK Tyres have been able to show the strong financial performance, going ahead
07:00with a reduction in their raw material cost that will be helping the company in posting these
07:05strong numbers on the operational front. So, tyre sector as a whole is looking good to us and in
07:10fact JK Tyres is our preferred buy. So, we are positive on this counter although this is showing
07:15some sort of softness in the stock prices today. But I think that will be a strong buying opportunity
07:19if the stock falls to the level of 420, 415 odd levels. However, the price target can be set at
07:25around rupees 480 to 490 odd levels. Got it. The next question is from Ravi,
07:32and he's holding 11 shares of Tina Rubber at a price of 1749 per share and he's asking for the
07:40outlook for the company. He's currently making a loss of around over 900 rupees. Asal, come back
07:45to you as well. Ravi is asking for the outlook on Tina Rubber. What are your views on the same?
07:51Sorry, I don't track these counters. We're not able to comment on this.
07:54Okay. Then Satya, I'll come to you. How does Tina Rubber look on the chart and what should the
08:00view do? See, Tina Rubber as of now we have seen that this particular company is under the
08:06formation of a flat pattern if you look towards on the weekly chart. And it's in the consolidation
08:10phase within a very tight range of 1600 to 1720 levels. So, breakout on the either side will
08:17decide the clear trend of this particular stock. But looking towards the overall on a larger degree
08:22charts, I believe one should exit the long positions on every rise towards to 1740 to 1760
08:29level. I believe that we're likely to witness some sort of a selling pressure in this particular
08:32stocks which might take a counter towards to 1550 or 1500. So, it's an exit from my end
08:38on every rise and such. Okay. Thank you so much for that. The next question is from Narendra,
08:43who is from Nagpur. Now, he's owning 341 shares of BSE at a price of 900 apiece and he's asking
08:49for the outlook on the same. He's currently making a profit of around 8.32 lakhs. And he's asking,
08:56you know, Astal, come to you. What's your view on BSE and, you know, specific the non-lending
09:02sector as a whole? So, what we have seen that this strong operating growth have led to surge
09:08in the profit which we have seen in the Q1 of FY25 results. Now, they are working in the various
09:14segments in order to drive more volumes and the various client segments. So, I think that will be
09:19helping the company in posting strong performance. And their various derivative products has proved
09:24to be the trend changing measure. My idea here is that with the introduction of the new products,
09:30innovative products, and with the introduction of the new practices which will drive more volume,
09:35more growth, BSE is well poised to cater the opportunities present in the sector as we have
09:40seen the capital markets are also surging very strongly. So, BSE is a major beneficiary to that
09:48and we are positive on the counter recommending buy as well as hold initial price target which
09:52we are giving to this counter is Rs.3650. And talking about NBFC sector as a whole is also,
09:58we are right now positive since we are seeing so many primary market movements are going on in this
10:03space as well. So, this space will keep on pulsing and we are positive on the NBFC sector as a whole.
10:09Okay. Well, that's positive outlook for BSE and the NBFC sector as well which has been seeing
10:13some action lately. The next question is from Anand and he's holding 300 shares of JK Paper
10:19at a price of Rs.517 per share. He's asking whether he should hold his position or sell it.
10:24He's currently making a profit of around Rs.84,000. And Swati, I'll come to you. How does JK Paper
10:31look on the charts? JK Paper definitely looks very positive on a larger degree as such,
10:37but on the shorter period of time from the last two months, we are witnessing a profit booking
10:41in this particular counter. Since he is making a handsome money, I will suggest to book at least
10:45partial profit at the current market price. Second partial, you can hold on by maintaining
10:49a profit stop loss of Rs.440 on a downside. Any momentum above Rs.480 levels will take a lead on
10:55the higher sides towards to Rs.520 to Rs.540 levels. So, at that point of time, you can keep
11:00on trailing your stop losses on higher sides. But at the current moment, I would suggest to
11:04book your partial profits and keep another long, keeping a stop loss of Rs.440 levels on the downside.
11:11Right. And the next query we have is from Prabhav Gaurav from Jabalpur,
11:15Madhya Pradesh. He is holding 200 shares of RT Industries and this is at per price of Rs.624.3.
11:22And he is asking whether he should sell. He is currently making a loss of Rs.12,000.
11:28Astha, I'll come to you. The outlook on RT Industries?
11:33Outlook is positive because what we are seeing is strong volume growth visibility from this counter.
11:38So, we are positive on this counter. And in fact, the company is also investing in the new product
11:43portfolio. So, I think that will be helping the company in posting these strong numbers going
11:48ahead. And now the plan is to invest around Rs.1500 to Rs.1800 crore in the F25 towards
11:54this expansion of the product portfolio. So, I think that will really help the company
11:59in posting strong numbers. So, we are positive on this counter. And I think there is no need
12:03to book any sort of loss because the cost price is more than or it is at around Rs.600 odd level.
12:09So, stay invested in the counter. Definitely, one will see the cost price as well as we are
12:14expecting this counter to show the level till Rs.610 or Rs.615 at the initial site.
12:20Got it. Rs.610 price target for RT Industries. The next query we have is from Raj who is holding
12:2610,000 shares of SCPC which is Sriram EPC at a price of Rs.21 a share. And he is asking whether
12:33he should hold or sell his position. He is right now making a profit of Rs.90,000.
12:38Swatia, I'll come to you. How does Sriram EPC look on the charts?
12:42Sir, the charts look very promising. The counter has given a very strong breakout of 26-25 levels
12:48on the monthly chart. And it's just a V-shape or double top breakout is there with very good
12:53volumes. So, I believe definitely this rally is likely to be extended towards at least Rs.50
12:59from here onwards. So, I would suggest to keep the long positions open. If you want to keep any
13:05profit-stock losses, keep the Rs.25 as a profit-stock loss and carry the long positions
13:10for a target of Rs.50. Thank you, Swati, for giving us those views.
13:14The next question we have is from Rajesh Maheshwari from Indore. Now, he is holding
13:18100 shares of Berger Pains at a price of Rs.619. And he is asking for the long-term outlook.
13:24First, Aastha, I'll come to you. Your views on the paint industry, especially this counter?
13:30So, paint industry is looking strong to us on the basis of what we are seeing that the
13:35fall in the crude oil prices will always be helpful to the paint industry. So, that is the
13:41major point. And what we are seeing in this company is that their volume growth is continuously
13:46showing strong growth. However, the management was little cautious when they were giving their
13:51commentary during the results that they were little cautious about the growth outlook of the
13:56company. But I think with the fall in the crude oil prices, definitely that will help the company
14:00boosting numbers as well as strengthen the margin. So, we can say that on that optimism, one can
14:06remain invested in the counter. Initial price target which we are giving to this counter is Rs.655.
14:13You know, Swati, I'll come to you as well on Berger Pains. How does the stock look on the
14:17charts? Not done so much in terms of year-to-date performance, just gains about 2%.
14:24Berger's paint chart really looks good because from the last one to two years, we are witnessing
14:30that the stock was treading under the pressure and it's just treading in the pattern of the
14:34low-top, slow-bottom. Now, finally, the stock has came out, gave the breakout of a trend line with
14:40the very decent volumes. I believe now the rally is likely to get started and henceforth, we are
14:44likely to witness some positive momentum towards to Rs.700 or Rs.720 levels on the higher side.
14:49So, it's definitely hold a particular recommendation from my end. If you are looking for
14:54any profit stop-losses, Rs.580 will act as a very crucial support level provided by short-term moving
15:00averages. So, by maintaining that stop-loss, we can definitely hold on the long positions for
15:04immediate target of Rs.700 and Rs.740 levels on higher side. Thank you, Swati, for giving us
15:10positive views from both the fundamental and technical side. Next query is from Devendra Rao
15:15and he is asking for the fundamental and technical view for Tata Tech. He is currently holding 50
15:19shares of Tata Tech at a price of Rs.1,102 apiece. He is currently facing a loss of Rs.500.
15:27Aastha, I will start with the fundamental view first. What is your initial outlook on Tata Tech?
15:33Our initial outlook is positive and I think the stock has a strength to show the momentum
15:40towards the level of Rs.1,200, Rs.1,250. Now, talking about the fundamentals, I mean,
15:45they have a robust skill set for the engineering services, especially if we talk about the EV
15:50services. In fact, I mean, the kind of solution this company is providing is outstanding and we
15:56are positive on this counter because they have got a very strong client name in their list.
16:02So, looking after all these positives, yes, we know that the stock price has not shown major
16:08momentum after its listing but long-term growth outlook is looking strong to us and positive on
16:13this counter. As I have already told, the price target can be set at around Rs.1,200 to Rs.1,250
16:18odd levels in the medium term. All right, a positive view from the fundamental side. Swati,
16:24I will come to you from technical aspect. I mean, the stock is down 10% since its listing date.
16:29How does it look on the charts right now? Definitely, the chart looks promising. Aastha
16:34has rightly pointed out that after the listing, the stock has corrected almost. And now,
16:40towards on a larger degree, the stock is under the formation of rounding bottom formations
16:44and it is taking a very strong support of Rs.90,000 to Rs.20,000 level. So, as long as
16:48it is mentioned at support level, definitely, we are likely to witness some sort of reversals
16:52towards Rs.1,200 or Rs.1,240 levels on the high side. So, definitely, it is a hold from my end.
16:57For a longer term horizon, you can even add more quantity at the current market price also. I am
17:03looking for a target of Rs.1,200 to Rs.1,240. So, it is a hold from my end and even fresh positions
17:07can be added. Okay, fresh positions as well as a recommendation to hold Data Technology. Well,
17:13the next query is from Nanda Reddy. He is from Andhra Pradesh and he is holding. Tanla platform
17:18shares at Rs.940 apiece and he is wondering if he should hold or sell his position. He is not
17:25he is not given the number of shares, but we will talk about the fundamental outlook.
17:31Aastha, any views on Tanla platform? Yes, the view is positive because it is one
17:37of the largest communication platform and as a service provider up there in India. So,
17:43first of all, that is positive and what we are expecting this company that they will
17:49show the strong revenue growth of around 15% to 16% over the period of FY24 to FY26,
17:56that is over the period of a two year because the new client addition which the company has done
18:01is definitely going to have the company posting this sort of CEGR growth which we are expecting.
18:05So, I think there is not a major issue with the company. One can remain invested in the counter.
18:10Initial price target we want to give to this counter is at around Rs.1,100 to Rs.1,120.
18:16Rs.1,100, Rs.1,100 target price. The next query we have is from Juhi Rawat,
18:23who is holding 10,000 shares of IDBI Bank and the price is Rs.65 apiece. She is currently
18:28making a profit of Rs.2 lakhs and she is asking whether she should hold or sell her position.
18:33Aastha, I will first come to you. Initial outlook on IDBI and the banking space as a whole?
18:38Banking space is looking good to us, especially what we have seen in the last two days,
18:42the strong momentum was there, but we are more positive on the banks like ICICI Bank
18:48because their net interest margins are really strong. The return on asset profile is strong
18:54and whatever the legacy issues with the asset quality was there, now that have been resolved
19:00and what we are seeing is that the bank is showing strong numbers on the asset quality front as well.
19:05So, not very much positive on the IDBI Bank, but positive on ICICI Bank. So, my idea here is since
19:10the investor is in the strong profit, then book partial profit and remain invested in the partial
19:16quantity and if it is possible, then buy some quantity for ICICI Bank also because this bank
19:22is poised for a strong run in the future. So, we are positive on ICICI Bank.
19:28Partial profit booking recommendation, Aastha, and a recommendation to actually take position
19:33in ICICI Bank if you want to be exposed to the banking space. Well, the next query is from Jayesh
19:39from Mumbai. Now, he is holding 2,000 shares of WardWizard Innovations at a price of 66 and he
19:44is asking for the technical view and asking what the chart suggests. Swati, I will come to you.
19:49How does WardWizard Innovations look on the charts? Jayesh is currently in a loss.
19:55Yeah, as of now, if you are looking on this particular technical patterns as such, as of now,
20:00I believe that the stock is under the selling pressures. Currently, it is trading nearby very
20:067 to 8 support levels and I believe if you are getting any rise towards this particular counter,
20:11you should exit out because there is no major reversal I can see from the current market price
20:17or not something technical formations are there. So, I believe on every rise,
20:20one should exit the positions and try to invest in some other quality counter.
20:26So, a sell for WardWizard Innovations. Well, the next counter we have in focus is Tata Motors and
20:31this is a query from Siddharth. Now, he is holding shares at around price of 1,070 a piece. He has
20:37not given us the amount. So, Swati, I will come to you first. What do Tata Motors charts look like
20:43right now? Yes, Tata Motors counter is really very good, but as of now, it is under the selling
20:49pressures since the counter has already bought at a very all-time high levels, nearby that level
20:55itself. And currently, we are witnessing some profit making or say the selling pressures.
20:59I believe the stock will find out a support nearby 920 to 940 levels. Between that level,
21:04we can witness some sort of a rounding bottom formation and there onwards,
21:07we may witness some pullback or rally. I believe if you are looking for a longer-term
21:11horizon, definitely you should hold on this particular stocks. Upside, I am looking for
21:16immediate target of 1,050 to 1,100 levels. So, you can hold on this long positions for a
21:22short period of time as such. Thank you, Swati. Aastha, I will come to you as well on Tata Motors.
21:26Fundamentally, what could drive this counter higher?
21:32So, what we are seeing is that the new product launches can be the big driver as of now. This
21:39is what we can expect from this counter. Although we have seen a strong fall post some brokerages
21:46report, but I think the way this company has performed and the way the financial performance
21:51has come out along with the strong industry tailwind, which we are witnessing right now in
21:56this sector, I think this stock can again have a capacity to move towards the upside. So,
22:02maybe a matter of time. So, right now, we are recommending a hold with the initial price
22:06target of 1,050. And those who want to buy, do not buy at this point of time. Let the stock fall
22:12more till the level of 920, 930 or levels and then we can make an entry to the count.
22:19Gaurah Aastha. The next query we have is from Srinivasa Rao, who is holding 9,000
22:24shares of Paradip Phosphate at Rs. 75 apiece and he is asking for the long-term outlook.
22:28Swati, I will come to you. How does Paradip Phosphate looks on the chart for someone who
22:33wants to stay for a long-term perspective? Definitely, this counter is really doing
22:38very well. It is under the permission of the flag pattern and it is under the
22:41permission of the body of that particular flag. Any momentum above Rs. 80, 80, 80,
22:4689 levels on the closing basis, definitely this counter is likely to be entered into the
22:52three-digit very soon as such. I am looking for a target of 100, 210 levels for a shorter period
22:57of time. So, if you are having any long positions, you can definitely hold on by
23:00keeping a stock price of Rs. 84 on a downside for a target of Rs. 100 on high side.
23:05Gaurah Aastha. Target of Rs. 100 for Paradip Phosphate. The next question is from Vincent
23:09and he is asking for the outlook on HDFC Bank. Aastha, I will come to you. You said you were
23:13positive on the banking space and ICICI Bank. What are your views on HDFC Bank?
23:19So, for HDFC Bank, we really need to wait for the Q2 results to arrive and then they will give
23:24a call regarding the buying on this counter. But as of now, we are recommending a hold. Although
23:29the financial performance was on an average front, but we are expecting this counter to show little
23:36improvement in the performance in Q2 FY25. But still, we would like to see the results before
23:41making any or recommending any fresh entry to this counter. One can remain invested in the
23:46counter if everything falls in place, then definitely this counter can move to the level
23:50of Rs. 1,700 to Rs. 1,750 or less. Q2 performance, a key for this counter right now.
23:56The next query we have is from Rajiv who is holding 150 shares of Mazgaon Docks
24:00at a price of Rs. 5,740 apiece. He is currently making a loss of Rs. 2.3 lakhs and he is asking
24:07whether he should hold or sell. Aastha, I will come to you first. Fundamentally,
24:13Mazgaon Docks, the defence PAC, the PAC has seen a correction. What's your views on the same?
24:19It has seen a correction because the valuation concerns are now started
24:24hovering around this counter. Although we have seen that this counter has shown strong financial
24:29performance and their execution capabilities are exceptional because they have given before
24:34time deliveries as well and that has helped the company posting strong margin. But with this
24:40strong rise in the stock prices, the valuation has now become a concern and that is why we are
24:44seeing a correction in the stock prices also. So, my idea here is wait for the Q2 results and let
24:50the stock settle till that time and then make entry to the counter. So, here the cost price
24:57is around Rs. 5,000. So, one really needs to wait for a long term. So, wait for it and if everything
25:03falls in place, then definitely this counter will show the cost price of Rs. 5,000 of this invest.
25:09Thank you so much Aastha and Swati for joining us today. We are completely out of time.
25:13And thank you viewers for joining us and sending in your queries. And remember,
25:18you can get all your stock related queries answered with the fundamental and technical analysis
25:23guests on the show at the same time tomorrow as well. But stay tuned to NDTV Profit.
25:27Lots more lined up on the other side.