Vridhi Investment's Vivek Karwa shares insight on #Zomato, #JioFinancialServices, #GokaldasExports, #ONGC and other stocks to watch in trade today. #BQLive
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00:00 Hello and welcome to BQ prime a very good morning to all the viewers
00:03 I am here all that. Yeah, a very steady day of trade is what we are witnessing
00:07 We opened the session at levels of around 19 for
00:10 33 and now we're trading around 10 points
00:14 Higher to that as well. So clearly an up move around half a percent coming in there
00:19 The advance decline ratio is also pretty much in favor of the advances
00:23 So that positivity that was anticipated in today's session has continued
00:28 However, it's a positive consolidation that we continue to see and the range continues to remain absolutely narrow
00:34 Let's quickly dive in in terms of stocks, which are
00:37 Newsmakers of the day and understand what one should do with them
00:41 We have a big car watch chief executive officer at Briti investment joining in the way. Good morning and welcome to the show
00:46 Good morning
00:50 Vivek let's start with a zomato
00:52 How are you looking at it? Because clearly from a zomato spare from a stock perspective
00:58 The stock did jump almost 5% in early trade. You have some block deals that have happened over there. We're talking about a
01:05 delivery fee in that range of 2 to 3 rupees in certain regions and
01:09 Recently one of the competitors
01:12 Which is Zepto just became a unicorn in the last round of funding as compared to which if you see zomato's
01:20 Business or a blinket perspective, which is the like-to-like one that is still undervalued
01:26 How are you looking at a zomato and what would you advise investors to do?
01:29 What
01:35 in fact, I did in my personal portfolio was when Zomato hit 47 48 that time I entered this talk and
01:41 Around 100 rupees I came out of
01:45 Why because of course everything looks good in Zomato right now
01:50 But this takes in some of the key investors getting out of the stock is first worry
01:56 And after this run-up, definitely the stock looks a bit touched test now the future the short-term
02:02 It might be still it might remain in one range. That is the possibility
02:06 But what I feel is over a period of time if you look at next two years three years the moment the company starts
02:12 showing profit in fact, they are
02:14 Then trajectories on the way to profitability. So when that happens the stock can really get related from here and
02:22 The cash portion which is available in Zomato if I'm not wrong, it is approximately
02:28 8,000 crores or something so that that
02:31 Is a huge cash the company has and hence they can
02:36 Now start charging kill competition
02:39 Various strategies will keep coming out. So I am quite bullish on Zomato even at this rates
02:44 But with the medium term to longer term horizon short term
02:48 It looks a bit stressed because of the run-up because it is almost doubled. But yes, if somebody wants to hold for a little longer, please
02:55 Surely put it on right? So that's with regards to Zomato moving on you have a Gokul Das exports
03:02 Which has been in focus as well and this is on one of the acquisitions that they have announced yesterday
03:08 The stock was locked in upper circuit in yesterday's session today as well
03:12 If you go to see in terms of the stock, we are seeing, you know
03:16 A strong move and it's a compelling strategic acquisition. That's what people are looking at
03:21 What do you make out of this and what would you advise investors to do?
03:24 Overall I have been bullish on textiles as such and I feel going forward also textiles would do well
03:34 but when coming to specifically Gokul Das
03:37 the
03:39 Acquisition they are done is going to really favor them and longer term maybe next three or four quarters
03:45 but the
03:47 Acquisition the benefits which are going to come after three quarters to four quarters have been factored in the price yesterday itself
03:53 So yesterday it was locked up or circuit and today morning
03:56 It was approximately eight nine percentage up that is when I saw the price and now I say it is hardly around five percent
04:02 So there is some kind of profit. So what I feel is the run-up again almost 30% run-up in two days is quite
04:09 compelling
04:12 Trigger to book some profits and take home. Let it correct a bit if it comes down at that point of time
04:18 You can again re-enter. It's a good company overall, but again, as I said 30% in two days is quite
04:24 Massive run-up. So the benefits which is going to come a market knows about it. So there will be some profit
04:31 Okay, but overall look at say two to three years perspective textiles overall
04:36 I'm bullish and I think go kicks also will do well from here
04:41 Right, so that's coca does exports moving on geo financial services. The key is that it's now locked in upper circuit
04:47 It's moved out of the lower circuit band
04:49 Tomorrow is the day where it will deal is from the sensex and other exchange other indices
04:55 How however, how are you looking at a geo financial services number one and for the benefit of our viewers what happens from tomorrow?
05:06 See the issue till now was that most of this passive funds index funds had to sell
05:11 Geo financial and as it is a capital
05:13 Is on the lower side now?
05:16 If some passive funds have to sell and if it is going to be out of the indexes tomorrow
05:22 What is going to happen is it's very easy for them to sell today when it is an upper circuit
05:27 So I think that is not going to be a issue. There are enough number of buyers
05:31 In a number of buyers in the upper circuit level this what my screen shows and hence people can easily the funds can easily sell
05:38 And come out. So that is one thing. So I don't think there is going to be any issue on that front
05:42 So that's a that's a non-issue right now now coming to geo first of all, I should give a disclosure that last
05:48 from 202 to
05:51 220 I have bought that is we have recommended to all our clients. I wanted in my personal portfolio
05:57 Also, so as a disclosure, I'm holding your financial as of today. What I feel is short term
06:02 Possibly the the fair value of around 265 70 might see immediately
06:07 That is one possibility because it is going to move only five to five percentage every day
06:12 It might take three four days, but yes 270 will be a possibility and the
06:15 Best part on it and the positive is that the promoter group also is buying. So
06:21 The Ambari family is indirectly raising stake and buying the stock from the market
06:27 So that shows that there is some valuation going to be longer term. Yes
06:30 They have announced some business plans, but how will that materialize that we are wait and watch but yes shorter term
06:37 I think 270 is quite a good possibility, right?
06:40 Moving on Vivek, you know India is likely to impose anti dumping duty on toughened glass
06:46 From China and this is the glass that is used for home appliances
06:50 How do you look at this from company specific action?
06:53 Specifically names like Holden glass or acai or even for the likes of
06:59 CSE into Cobain. These are few of the names, but I'm sure there are many more
07:03 How would you look at it from the company's perspective?
07:06 In fact, there is borosil also which is quite popular company in the glass now
07:12 See, I feel particularly when you talk about holding glass, it is undervalued even now
07:18 It's almost a debt-free company. There is very very small data on the books
07:21 The only issue on this is that the company is a micro cap just 560 crores
07:28 worth company and hence the volatility also can be higher but
07:33 This antidump convert is very very
07:36 Careful nowadays wherever there are prices moving up for example sugar yesterday we saw about rice
07:43 Now glass so every sector where there is some issue cropping up due to china factor
07:49 They are trying to address it and hence
07:51 Overall glass should do well. That is one thing and be it automotive glass or be it our
07:58 home appliances
08:01 Kind of holding a glass head of the place
08:03 Kind of holding a glass head of the place
08:05 I think everything should do well and handling glass today. The results have been last five six quarters
08:11 The results have been positive first thing second thing as I said the net level is negligible
08:17 And hence the stock looks undervalued. I feel from 104 now 103 now it can easily touch 120 also
08:24 right
08:26 Moving on Vivek of a Maruti Suzuki after their ATM
08:30 They said that they will be spending almost 5.4 billion dollars to double car output by
08:36 2031
08:38 And that will actually increase its production capacity to 4 million vehicles
08:42 What do you make out of this and how would you look at a Maruti good levels to buy?
08:47 Uh
08:51 definitely, I think
08:53 It's a long term. Let's see Maruti is a stock where you find that it is not able to cross the 10 000 psychological
09:00 Level mark and it stays below that then it tests 10 000 and comes back again again
09:05 But what I feel is the company has been slowly moving towards EV other companies have been rushing but
09:12 Maruti
09:14 I should say is it a sign of maturity or they are slow? I cannot comment on that
09:19 But yes, they are looking at the market how it is developing and then they would come into the EV space as well
09:26 So I feel longer term. Yes, Maruti still commands a good market share and
09:31 If somebody's buying here the downside could be limited the upside could be slow and steady. It is not going to rush up
09:38 Immediately. It's a it's not a small company three lakh core market cap is not going to double immediately
09:43 But yes as and when they keep announcing
09:46 more
09:48 Vehicles and they're also trying to enter SUV segment. So the cars have already been released. I think stock should do well
09:55 So downside is limited upside. I'll not be able to comment because it's going to move only slowly
09:59 Right ongc also had their agm and they've said that they will be investing two lakh crores in energy transition projects
10:07 Uh moving on a couple of other announcements also that they have made
10:11 What do you make of an ongc taking into consideration even the way crude has been moving today?
10:16 Or an overnight trade we were about the 85 dollars per barrel
10:22 See if you look at the pure
10:24 Fundamentals of when you say it should not be able to get it and that's the fact and it's not uh,
10:28 Today's fact it's last many years that it has always been below. Uh,
10:32 It's fair value. I should say. Uh, the problem is
10:37 uh, we
10:40 Uh, this company is particularly a psu company and hence
10:45 The real worth of it or the value of the stock is not shown on the screens and I don't think it is going to show
10:52 as well
10:53 And uh elections coming up, uh in next six months, we will be in full election fever
10:58 So and we saw yesterday lpg gas price is getting cut
11:03 So this oil and gas and omcs I would be little uh skeptical to touch for next uh, until at least may
11:11 And when the elections would election business would be out. So I will I would actually stay out
11:16 So the evaluation of this top is good and if they're investing two lakh crores, uh, I think again return
11:22 Generating returns on that capital also would take time. So it is going to always have pressure on the stock
11:28 So though a good company everything looks good in the company. I would stay out
11:32 Right. So that's with regards to where uh,
11:36 omgc goes but moving on metal counters have been in focus as well in fact good traction since yesterday and today on the back of
11:42 A couple of commentary with regards to china. How are you looking at a hindalco as well as a tata steel?
11:47 Say hindalco and still uh, I think hindalco is also looking at uh, uh,
11:56 Say investing in other sectors. Okay, that's going to be small I think but what is happening is due to this china factor the
12:04 Aluminium prices the steel prices and other metals. So metal space is stuck in a range
12:10 uh tata steel
12:13 Is on trajectory of becoming uh, debt free. So that company also looks good to be it alco uh,
12:20 looks good to be but uh
12:23 I don't think the moment is going to be quick and fast over here particularly because of china factor. So until china really
12:31 uh say
12:33 Announces more stimulus stimulus packages
12:35 Pushes in liquidity into the economy and there is some uh metal pickup. This stops might actually not move
12:42 So I would stay away from metal as of now
12:45 Uh the domestic consumption we cannot rely only on the domestic consumption. So overall both the stocks are good on dips. Yes
12:51 they will be a buy because uh
12:53 As I said data steel is wanting to become debt free and it will become and hindalco
12:58 Also is undervalued but on dips they would look more interesting
13:03 Right, so that's with regards to metal space as a whole
13:05 Thank you vick so much for joining us on the show and sharing the views
13:09 So clearly a lot of stock specific action is what we continue to see in terms of where markets are concerned
13:15 The breadth continues to favor the bulls as well. If you see in terms of the sensex
13:20 A little over 350 points is the kind of upside
13:23 Uh that we have been seeing six tenths of a percent higher uflex spark
13:28 As well as both these counters are up a little over 10 percent in that range of 10 to 13 percent
13:33 Jindal poly is up around 7 to 8 percent coffee day is up in trade today as well
13:37 So a lot of positive momentum stocks is what we are witnessing in terms of where markets are concerned
13:43 That's all that we have on the session. Thanks for watching and lots more lined up on the other side. Please stay tuned to bq prime
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