-#AlkemLabs denies claims on drug failing quality test
-#Nifty, #Sensex off record highs
Get all your stock-related queries answered by our technical and fundamental guests with Alex Mathew on Ask Profit. #ndtvprofitlive
-#Nifty, #Sensex off record highs
Get all your stock-related queries answered by our technical and fundamental guests with Alex Mathew on Ask Profit. #ndtvprofitlive
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NewsTranscript
02:00Good morning and welcome. This is NDTV Profit. My name is Alex Mathew and you are watching
02:08Ask Profit. This show gets you answers to all of your stock related questions and to
02:14that end, if you have got questions for us, you can send them on any one of our social
02:19media platforms or indeed on the number that you see at the bottom of your screen. Just
02:24remember to tell us your name as well as where you are tuning in from. Now, let us take a
02:29look at where the markets are right now and in fact, you have the benchmark indices that
02:33are trading just about flat having given up quite a bit of the ground that they gained
02:38at the start of the session. In fact, we are off the high point of the day and we are trading
02:43more or less where we ended. But don't count out a rush later on in the session. This is
02:49something that we have seen consistently all through the week. There has been considerable
02:53buying in the last half and particularly towards the end of the session that took
02:58place yesterday as well and we hit all-time highs. We are trading above that level as
03:04things stand right now. The broader markets trading with gains as well and you have the
03:08mid-cap index that's up about 0.2% and you have the small-cap index that's up about 0.4%.
03:14The market breadth tilted in favor of the advances. Even on the benchmark Nifty 50 in
03:18fact, you have 32 stocks that are gaining right now and 18 that are losing ground. Which
03:25are the stocks that are in focus today and you have in terms of the sector performers,
03:32you have IT which is gaining once again and this is on the back of the Accenture results
03:37that came out overnight and this was viewed as neutral to positive from the perspective
03:43of the Indian IT companies and seemingly the worst might just be over. Let's see how things
03:48pan out. Of course, a lot depends on what happens in the U.S. economy and we have been
03:53watching that very closely. What else is panning out and this also has to do with economic
03:59news but this is coming in from China. We have been speaking about that all through
04:03the week and certain measures being taken by the Central Bank as well as the government
04:08in China in order to bolster the economy there. That's having a bearing on metal counters.
04:14The metal pack is once again gaining in trade up about 1% or thereabouts. You have the oil
04:22and gas pack that is also doing well. BPCL incidentally is the top key now in the Nifty
04:2650. Now, let's delve into the focus of Ask Profit today which is Newland Laboratories,
04:34arguably one of the stocks of the day. It's off the high point but it's still up about
04:385% and a significant development coming in for this company in the way of a USFDA approval
04:44for Bristol-Myers Schizophrenia drug. Let's bring in Varsha to tell you about the perspective
04:50here and the context and why this is such a big deal. Varsha, morning.
04:54Good morning, Alex. So, as you rightly said, so Newland Lab is buzzing now just on the
05:00back of USFDA approval for Bristol-Myers drug which is used to treat mental disorders and
05:07the name of the drug is CAR-XT which is a drug developed by Corona Therapeutics which is being
05:14acquired by Bristol-Myers. Now, why Newland is focusing today? Because Newland has been
05:20partnered with Corona Therapeutics since CAR-XT's phase 3 trials in 2019. Now, please do remember
05:27that BMS that is Bristol bought Corona in Q3 FY24 for $14 billion and BMS has a marketing
05:34exclusivity right for CAR-XT drug for 5 years and a patent period that's been much longer. Now,
05:41according to analysts, CAR-XT's peak sales during that patent period could go up to almost $7-10
05:48billion. Also, FDA's approval was based on data from two studies in which the patient on the drug
05:55experienced a meaningful reduction in symptoms. Now, Q3 FY25 onwards could see a huge ramp-up
06:03when it comes to Newland CDMO's revenue for CAR-XT as Bristol starts launching the product.
06:09Let's see what Goldman Sachs has to say on this. So, they have initiated a buy coverage on the
06:15stock with the increased target price of Rs 9,100 which determines an upside potential of 45%.
06:23Now, they expect company's total addressable market of $100 billion in 2023 and expect to grow
06:3013% CAGR this market for next 5 years. Now, this is mainly driven by increase in outsourcing
06:37penetration and market share gains. They are also expecting Newland's top-line growth of almost 24%
06:43in FY26 with EBITDA margin of around 14-18%. Now, this on the back of expansion of their
06:50unit 3 for ramping up supplies of their key products in H2 FY25 and commercialization of
06:57CAR-XT which is the product that we are speaking about and also the potential of their fourth
07:02molecule which will be upcoming. And lastly, they are also bullish on the launch and approval of
07:06newer niche molecules in speciality API segment. This is the reason they are giving the upside
07:12potential of 45% and also they have increased the target price. So, this is all we have on
07:17Newland as of today. Thanks so much Varsha for putting that into context for us and that
07:21is a perfect moment to introduce our guests for the day. We have got Ashish Maheshwari who is
07:26Director at Arihant Capital Market and Rajat Bose who is a SEBI registered research analyst. Thank
07:31you so much gentlemen for taking the time. Thanks so much as always for joining us on Ask Profit.
07:36I'll come to you first Ashish on Newland. It's up and about today, but given the note that we just
07:41spoke about, the return potential seems to be significant from this point on. Would you be a
07:46buyer and how do you rate the latest development? I think that 9100 target was of old report.
07:54This is not something a new report. I think this report was released in April 2024 when
08:01those prices were there. 13000 is the stock price, 9100 target is unrealistic one. So,
08:08in my view, coming back to this new drug launch, this is particularly very significant development
08:17for Newland because this is a drug which is used in schizophrenia and Alzheimer treatment and
08:24there's a big market size looking at the mental situation or mental related issues which are
08:31coming across the world and particularly US market. Newland is again an interesting company
08:38just on the path of how MRF has given data. There's no bonus, there's no split in the stock,
08:44very small equity of just 12 crore rupee and very low dividend also they give. So, a lot of
08:53value to shareholder, this company has provided over a period of time. Even we saw very good
08:59numbers in February 2024 from them where net profit almost doubled. And this year also,
09:04I'm expecting they'll do almost 500 crore kind of profit form. It's still looking attractive,
09:11stock is just 50 degree higher today, but all decline should be used to buy this fundamentally
09:16very strong company. Right. So, that was the focus on AskProfit, Newland Laboratories. But
09:23I'd like to talk about another focus. It's a moment to talk about a very important asset.
09:30No matter what you're holding is, this particular asset is probably the most important one for all
09:35of us. I'm talking about the heart. Success in the stock market is not just dependent on the brain,
09:42it takes a strong heart as well. This Sunday, the 29th of September is observed as World Heart Day
09:49and on this occasion, we at NDTV Profit would like to urge our viewers to remember to take
09:54care of their heart, just the way they take care of their portfolios. Now, on that note,
10:01it's the perfect opportunity to kickstart the query segment and a lot of you have written in
10:06already. By the way, if you're tuning in for the first time, you should tell us where you're
10:10tuning in from and what your name is. The first question we're taking today is on ICICI Bank and
10:16it's a relatively short-term question and so I should come to you, Rajat, on this one. We've got
10:21Gauri who has bought at levels of 1130 and she's wondering what levels she can look at from the
10:29perspective of the next three months. Well, if it were to continue moving up, at the moment,
10:37there is a little bit of profit taking that is going on in our ICICI Bank but so long as the
10:44stock doesn't fall below 1300 level, there is nothing much to worry about. On the upside,
10:501316 to about 1375, you can expect beyond that if it moves, then 1418 would be the next target
11:00and definitely there should be a stop-loss below either 1300 or at best 1280.
11:08Okay, we've got a question from Rakesh who says that he's a senior citizen, he's writing in from
11:13New Delhi and he's also asking about a couple of banks. I've said that I will take it on
11:19IndusInd Bank which he's bought at levels of 1443 and Axis Bank which he's bought at levels of 1180
11:27and he's pointing out that he's looking for a shorter-term perspective. Does he hold or
11:35sell is the question that he's got. Since it's a relatively shorter-term question, Rajat, I'll
11:40come back to you. You've already given us a view on ICICI. What can you tell us about IndusInd
11:45and Axis? I would say IndusInd Bank from a technical point of view looks quite good. In fact,
11:53he should continue to hold on immediate target once it crosses 1495, 1520 and thereafter,
12:03the higher prices can be envisaged to about 1550. So, put a stop-loss below the level of 1430 because
12:13around that range, 1430, 1440, the moving averages are located especially the 50-day
12:23and 200-day moving average is located. IndusInd is a clear buy. Regarding Axis, I would say
12:30don't buy a fresh but continue to hold on what you have. Again, the same, since you are a
12:37short-term player, I would say below 1250 should be your stop-loss because that is the level where
12:44the 9-day exponential moving average is located and use closing price and not just intraday dip
12:51below 1250 for the stop-loss. Okay, fair point. The next count is Engineers India and this is
12:59a question coming in from Kanak Kothari who is writing in from Ahmedabad. Kanak has bought at
13:03levels of 175 or thereabouts, very close to that level and of course, seeing a profit right now.
13:11EPC player, what would you say Ashish about the prospects for this counter?
13:16She is sitting on gains of about 1.3 lakhs. My advice will be to book gains once in Engineers
13:25India because from ISO 300 rupees, we have seen continuous liquidation in this stock and
13:33there's a lot of selling coming in from institutional players also in this stock.
13:38Though fundamentally, the company is okay but in my view, whatever the PSU stock related euphoria
13:44that is now subsided and now very selective stocks are getting higher valuation or rich
13:51valuations and this is paid. So, in my view, you are having so many other opportunities in other
13:57sectors which looks much attractive than Engineers India Limited. So, whatever profit is there, you
14:03can take it from the table. Yeah, all right and that's the best time to get out of the stock when
14:09you are in fact seeing a profit. ISAF, Small Finance Bank is the name of the counter we're
14:15looking at next. It's currently trading at 46 rupees per share. It's got a market capitalization
14:20of about 2,400 crore rupees and we've got Sibi who's riding from Chennai in Tamil Nadu. He's
14:25bought 4,250 shares at a price of 55 rupees. So, losing ground here. Would like to know the
14:33long-term perspective on the stock though. Ashish, several names available in the financial space
14:41and some have said that the valuations are not too stretched. In fact, this is one pocket
14:46where there are still opportunities to buy. Would this be the best prospect though?
14:53No, I don't think so. The stock is near 52 week low and from 80 rupees, we have seen the stock
14:59continuously falling and I think 52 low should be 43, 44. So, it is opening near to that. It
15:07shows a lot of liquidation is happening from investors across the board. Again, the problem
15:12is in this particular sector, first of all, there are umpteen number of choices which are available
15:17with attractive valuation. So, why to look at a bank which is just 2,500 crore market cap? You
15:24are having your IDFCs and RBL, etc., which are not getting any attention. So, turn of ESF,
15:31Small Finance Bank, it will really take a lot of time. So, my suggestion will be to exit from this
15:37and focus if you want to remain in this sector on the frontline bank in the stock zone. So,
15:42maybe your ICICI access or Innocent Bank, they hold more potential than these small banks.
15:48Okay. I am going to give Marulappa an opportunity to tell us whether this is actually the case.
15:57He is saying that he has bought Hind Copper at levels of 341 holding 20,000 shares. Is that
16:03right, Marulappa? And your gains are 1 lakh as of now. All right. That seems to be the case.
16:10I am not sure what the perspective is, but I am guessing since you have accumulated so many stocks
16:16or so many shares rather, you would like to hold for the long term. Ashish,
16:20what is the perspective on the fundamentals? We are hearing some murmurs that measures are
16:26being taken to support the Chinese economy and that bodes well usually for metal prices.
16:31I guess that would be good for Hind Copper as well.
16:35Yeah, I agree with you because we have seen some rally again in Paris as well as non-Paris stock
16:42both. So, Hind Copper will also do well because the first rally comes in the copper because
16:48copper is something like a proxy to how economies are doing. So, in my view, we can remain invested
16:55in Hind Copper. Though the stock is down almost by 60-65 rupees from 52-week high,
17:01but still value is there. So, the stock keeps on coming in F&O ban, which prohibits actually
17:09the rise in the stock compared to other stocks. But the stock is fundamentally good and
17:14maybe in 6 months, you will see 400. I hope that Marulappa, you have got a diversified portfolio.
17:23This is 68 lakhs in one stock, of course, and well, I'm sure that you've got several other
17:29stocks and maybe you can take some pointers from this show as well. Jai Krishnan has got a question
17:34on Polycab for the medium term and he's bought at levels of 6,759. He's looking for a hold or sell
17:41recommendation. The stock is up and about today, 4.3% higher. Rajat, how does it look on the charts?
17:47Well, now, today it is performing very well and once it crosses, say,
17:58rightly looking at it, 7300 level, if it takes out, then the next target would be
18:067470 and after that 7550 would be the target for Polycab. But remember one thing,
18:14crossing 7275 to about 7300 is pretty crucial for Polycab. If it does that, then definitely
18:23those higher levels will also be scaled up. But one thing I would like to say is that,
18:28say, about a year back or earlier, I think early on this year in January, there was a crisis in
18:36Polycab and that crisis, you get the brilliant opportunity to buy. So Polycab, even if you have
18:41to hold it, you can continue to hold it so long as the 200-day moving average at 6000 is not broken.
18:50I'm actually curious. I was asking about metals and we spoke about Hindustan Copper. Rajat,
18:56I know that I've asked you in the past about whether you look at commodities. I'm not sure
19:00if you look at metal prices, the underlying and whether you've been studying those charts
19:05and whether you're gleaning anything from base metal prices and the way they've moved.
19:12Do you have some insights to share? You want comics or MCA? Tell me.
19:19Whatever you're looking at, sir. Just to give my viewers a bit of a sense of what you're reading
19:24from metal prices because this week, you've seen the metal index rise quite substantially and quite
19:30a few names are in focus. And of course, the overarching conversation about China and what
19:36it's doing for its economy. But is that bearing through in the underlying metal prices as well?
19:42First of all, the person holding Hindustan Copper, I would say that that stock is trending,
19:48trending up, going up. So it is going to go up. And I really expect that over a period of next
19:55four or five years, Hindustan Copper will do great. Much greater appreciation would be there.
20:02Regarding Copper MCX future, currently, it is at 860. And it is on an uptick. In fact,
20:11there has been a blast on the upside. All the moving averages have gone up. And now it is
20:18showing that there would be some kind of profit taking that might happen around the futures price.
20:23I'm talking about one month MCX future, which is 879, 880. Around those levels, there could be
20:31a little bit of profit taking that you can expect. And regarding Copper futures,
20:44even in comics, it looks very good. It looks very good. The similar kind, exactly the trend,
20:50exactly the performance that you see in MCX chart, the same thing is also on the comics chart.
20:59So Copper is on a roll. Absolutely. And so are some of the other metals. And that's perhaps
21:05the reason why you've seen metal counters rise quite substantially. Let's talk about NBCC.
21:10Sushila from Billari is asking about whether or not it can be bought. Sushila points out that
21:14there has been a bonus announcement as well. Ashish, what's the perspective on this one?
21:18It's already gained quite substantially, a doubler over the last few months, in fact, in 2024.
21:26If you see from the lows, it has tripled from 60 rupees, the stock has come to almost 117 now.
21:33So this is still compared to your Engineers India, etc. There's still a better bet.
21:39Though I don't see any big upside coming in because PSU stock is suddenly out of
21:46flavour for the market. And the market is focusing on now metal or IT or
21:52banks or power sector. So railway defence and PSUs are out of it. So in my view,
21:58you can remain invested here, but keep a target, say maybe 185-192 pump gains in this stock also,
22:05because compared to other stocks, this will underperform. Yeah, considering the kind of
22:11run that it's had, as you pointed out. Patel Engineering is the next counter,
22:14Ashish said, I want to ask you about this is from Ramesh. Ramesh is writing from Hyderabad.
22:19He invested recently, he says he's bought at a level of 57. So it's not too far away from the
22:23current market price. And he's a long term investor, he's not in a hurry to sell. So
22:27what should he look at in terms of the cues that you would say,
22:30in terms of the fundamentals for this counter? Fundamentals are okay for the counter and over
22:36a period of time, stock has given good returns also. And infrastructure sector is also been a
22:42thematic sector when some rally comes in the sector, then all the stock will go. Otherwise,
22:47they'll keep on languishing. So it's happening with Patel Engineering also last for a few months,
22:52the stock is not going anywhere. But still, fundamentals are okay for this stock. And
22:58I'll suggest to keep a stop loss and hold this stock, maybe 55 should be the stop loss to hold
23:02this stock. And maybe 65-67, you should try to exit also. Okay. All right. Since we have a bit
23:10of an open ended question, I'll take this next. Dhirendra is asking a question for everybody.
23:15Which is the stock that you would buy today, Rajat? What looks most attractive?
23:22What looks most attractive to me? Well, if you want to bet on a safe wicket, then ITC is the
23:30choice. Because ITC has embarked on a phase up trend and it is likely to continue. Other than
23:40that, some of the stocks, I mean, I personally hold some shares of this company that is Deepak
23:50Nitrite, even in today's system, it is doing pretty well. But there are lots of counters that
23:58you can actually look at. But then I would say, bet on ITC. That is the best thing to do. Because
24:05even if it goes down, it will, it bounces back. Because after clearing 500-510 range,
24:13ITC is headed for 540. Okay, 540 is the level that you should watch out for.
24:18It's time, gentlemen, to hit the rapid fire segment that we do on this program. And
24:23I understand if you need a couple of seconds to think about the stock that I mentioned,
24:27but do keep your answer as concise as possible and we'll fit as many as possible over the course
24:31of two minutes. Devika from Chennai has bought Kalyan Jewelers for the long term, bought 1700
24:37shares. The stock is currently trading at 714. Profit is 10.8 lakh rupees. Ashish,
24:44would you book or would you hold? No, I like to remain invested because the gold prices are
24:49moving up. These companies can do well. Keep a target of 850 for exit. Okay, Rajat RVNL is the
24:56name of the counter. We've got Shiva, who's bought at levels of 560. 3000 shares have been acquired.
25:04No movement for the last three months is what he's saying, but he has actually lost ground.
25:07Would you hold on to this or not? Ideally, it should be sold if it falls below 480. But it
25:14is in a downtrend. If one wants to sell, that's one's choice. But I would say hold with a stop
25:21below 480. Okay, we've spoken about Hind Copper, but the question is on Hind Zinc. Hindustan Zinc
25:26is the name of the counter. Gautam is asking about it. Bought it for a price of 507. The
25:31stock is in the green and it's above his buy price. Rajat, would you hold on to this?
25:37Surely, I would hold on to this. It has actually, the downtrend has been reversed and it is going
25:42to go up. 50-day moving average is at the current price. So, hold on. Hold on with the stop below
25:49510. All right, we've got Shivam who's asking about Kamdhenu Venture. Any view on this one,
25:56Ashish? The stock is also a trading kind of bag, in my view. I don't have any particular view.
26:07Yeah, okay. That's fine. Astral Poly, would you hold at this moment? Satish from Pondicherry
26:13wants to know. I believe, let's pull up the chart. In fact,
26:17so would you have a positive view on Astral Poly? Bought at levels of 1904. Ashish?
26:24Yeah, I'll remain invested. I'm bullish on this. Naveen is asking about investing in Amara Raja
26:30for a relatively short-term period. Rajat, on the charts, does this make sense? The stock is trading
26:36at 1346. Yes, one can continue to hold on. Amara Raja looks good. This can be continued to hold on
26:44because all that you have seen is coming to an end and the 200-day moving average is close by.
26:53So, it will bounce back. You can continue to hold. All right. On that note, Rajat as well as Ashish,
26:59thank you so much for joining in and happy Friday to you. Have a fantastic weekend.
27:04That brings us to the end of this particular edition of Ask Profit. It's been an absolute
27:09pleasure bringing it to you. Watch out for an exclusive conversation with Ajay Singh of
27:14SpiceJet at 2 p.m. today and we've got lots else lined up as well
27:18over the course of the day. All of that and more you'll find on NDTV Profit.