#StocksInFocus | Sharmila Joshi shares insights on #Zomato, #Sula, #BHEL, #RVNL and other stocks to watch in trade today. #BQLive
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00:00 Hello and welcome to BQ Primer. Very good morning to all the viewers. I am Heeral Dadia.
00:04 Clearly, if you go to see, from the positive, we have inched lower again in the negative
00:09 and nearly at the day's lowest levels as we speak. Pressure building on in terms of bank
00:13 nifty as well and the breadth is pretty much in favor of the declines in today's day of
00:18 trade. It is expiry, so the volatility is expected to remain high. But clearly, a lot
00:24 of stock specific action is what we are witnessing. Let's pull up a Zomato and trade and if you
00:29 see this counter in terms of today's session, the back of the balks and the blocks that
00:33 have happened, the stock has actually touched a 100 mark in a pre-open session today. Sharmila
00:41 Joshi is with us today to discuss more in terms of the stocks that are in action. Sharmila,
00:47 good morning and welcome to the show. Your view with regards to a Zomato?
00:51 Yes, it was interesting that after that initial buzz for all these new age stocks, we had
01:00 that whole big correction that took place. And then we have been seeing recovery in a
01:06 few select names within that space. And that has to do, also had a lot to do with the fact
01:13 that they were able to walk the talk and report better earnings. But now that you reach that
01:18 100 price and you saw an initial investor, in fact, two initial investors taking exit,
01:24 it brings to mind a thing again that a little bit of concern seems to have cropped up again
01:32 that how many more such exits will we see and how many more investors could there be
01:37 who invested in the stock at much lower prices and would really use this improvement in stock
01:44 price to exit the stock. So, I think you need to sort of approach these
01:48 stocks again with a little bit of caution because, yes, I think earnings have improved
01:52 and that pullback from whatever, the lower levels that Zomato had gone to, almost like
01:59 I think 45-50 levels from there, that this pullback is actually almost like it's doubled
02:05 literally the stock. So, I think it would be prudent to be a little cautious at this
02:10 stage. Right. Cautious in terms of Zomato. Moving
02:13 on, you have Sula Vinyads which is trading under pressure and this is on the back of
02:16 the large trade that has happened in today's session. How are you looking at a Sula because
02:21 the numbers have been encouraging, specifically the long weekends, the holiday season that's
02:29 auguring well for them. What would you advise investors to do with the Sula?
02:33 So, you know, interestingly, so I'm a huge wine drinker, but you know, what we've really
02:40 seen in terms of people converting to wine drinking, I think the expectation has, there's
02:47 a big gap between expectation and reality because you can project numbers, but that
02:52 has not really translated in those many more people sort of in terms of percentage shifting
02:58 over to wine. But yes, I think the company has been doing great and the kind of new variants
03:04 they've introduced, etc. So, all that is great. But I think, yes, once again, we've had an
03:09 exit and we've also had the promoters, I believe, some days earlier selling some shares. And
03:16 also I think maybe perhaps today the fact, a slightly technical fact, but you know, when
03:20 these sort of block trades get done in the block B window, it means it's sort of getting
03:25 matched up and like you knew that this block was coming and you could find a buyer to buy
03:31 the matching quantity. So, the overhand in the market is not there. But in this case,
03:35 there is an overhand because this didn't happen in the block B window. So, there would be
03:39 a bit of an overhand for the stock. So, once again, a stock that I like, but I think at
03:43 this level and this valuation, I'd be a little cautious.
03:46 Right. Moving on from the Pharma pack, you have a Agenda Pharma that is in focus in today's
03:52 session. And this is on the back of the US FDA approval that they've got for one of the
03:57 migraine drugs, if I'm not mistaken. It's interesting to see that, you know, now as
04:03 per the settlement with the innovator, Agenda can launch Topramate on the 1st of February
04:08 of 2026 or before that. And earlier, if I'm not mistaken, Zydus, who has already launched
04:14 a similar product in the US. What do you make of it? And for an Agenda Pharma, do you think
04:19 this could be one of the movers because the stock is seeing some smart moves?
04:23 But I think the valuations are a little high. So, you know, we have a stock in a sector
04:28 that's sort of performing well. So, you know, when that happens, any piece of positive news
04:33 is sort of taken well and you see a positive impact on the stock price. But purely from
04:41 a longer term perspective and a valuation perspective, I find the stock a little expensive
04:44 at this price.
04:45 Right. DreamForks Services. Now, it's been a downer in the last one to two months if
04:51 you see the price performance of DreamForks. However, they've interpacted with Visa Service
04:56 Provider to offer premium lounge and doorstep visa services. How are you looking at the
05:02 stock and the company? Because last one month, again, major profit booking is what we've
05:07 seen on the stock.
05:08 Once again, I think a great business to be in. And, you know, if you look at the sheer
05:16 number of people traveling and the number of people traveling overseas. And so, you
05:21 know, I think, you know, to sort of tie up with the services, Visa Service Providers
05:26 like this and to talk of the kind of services that they're talking of, premium lounges,
05:32 doorstep delivery of visas, etc. is great news. But once again, because of the run of
05:38 the stock has had... So, this is a very niche area. So, I don't think that I want to look
05:43 at it from a purely a valuation perspective. But just I think that while the news is very
05:49 good, maybe you need to sort of wait a bit before, you know, if you don't already have
05:54 the stock, if you have it, obviously, I think it's a good thing.
05:57 Moving on, you have the electronics PLI scheme that has come to the forefront and you have
06:02 a lot of Indian companies as well who've applied to it. What do you make of it specifically
06:08 the EMS names like a CIRMA, you have Keynes Technologies, Dixon, etc. How are you looking
06:15 at these names? And would you think good investment bets at current levels?
06:19 A lot of these stocks, you did see them have a huge run up and from there on, especially
06:29 to speak specifically of Dixon, you did see a correction from there on. But you know,
06:35 given their business models and the fact that this scheme opens up sort of new order avenues
06:43 for them, I would actually be quite positive on the Dixon.
06:49 Moving on, on a Spandana Spurti, you did see a block deal happening. What's your view from
06:53 a fundamental perspective on a Spandana Spurti?
06:56 So the results seem to be improving. So I think that's a definite positive. And once
07:04 again, I think, you know, if you were just talking of a block deal earlier, this block
07:08 deal did happen in the block deal window. So that means they had a buyer lined up for
07:14 the... So I think you should see less impact on the stock price. And as I said, I think,
07:19 you know, results are improving. So I would, I think be sort of positive on this stock.
07:25 BHEL, Sharmila has actually got an order from NTPC to set up a thermal power project in
07:31 Chhattisgarh. Now, the stock did hit a 52-week high as well after the 15,530 crore order.
07:39 How are you looking at BHEL from a valuation perspective?
07:42 Well, you know, this stock is again double if you really look at it from the last six
07:48 to eight months perspective. It used to be at 60 rupees, I think currently at 110 or
07:53 so. But, you know, I think just looking at their order book and the kind of order books
07:58 that they're getting and the fact that, you know, everything in that space or in that
08:03 capital goods space has seen... or most of the stocks are, I think, at new highs, new
08:08 all-time highs or very close to the 52-week highs. So, what I'm trying to say is the entire
08:15 sector is doing well. And within that sector, I think the kind of capabilities BHEL brings
08:19 to the table and the kind of orderings that they have, you know, won over this last couple
08:26 of quarters is extremely good. I think they have a problem of plenty sort of because,
08:30 you know, now it will be really more about how they deliver. So I think that's a good
08:37 space to be in. So I think I continue to be positive on the stock. We may be currently
08:42 at 110, but the stock can easily head another 15-20% higher from here.
08:48 Right. Moving on, RVNL is in focus as well. And this is on the back of emerging as the
08:55 lowest bidder for multiple Maharashtra Metro Rail projects. Now, railway stocks, Sharmila,
09:01 have been in focus. And there have been, you know, good up moves that we've seen. Do you
09:06 think it's still a good time to enter railway?
09:08 So, you know, the whole problem with this entire PSU space is, as we were discussing
09:17 earlier, is that the gestation period for all the orders is fairly long. Then I'm more
09:23 sanguine say about the BHEL is that, you know, the stock was trading at, when it was 60,
09:29 obviously, I think it was a big, you just see that they were getting things right. And
09:35 it was an absolute die, but even at this level, given the fact that, you know, their order
09:40 book, etc. and their proven capability. Now, the problem with RVNL is that the entire railway
09:46 space is that it's been moving up over the last one and a half year and a lot of it was
09:52 before you even sort of got the order flows that we are talking of today. So all I'm trying
09:58 to say is, I think it's, if you're already in the sector, definitely stay invested, move
10:03 your sort of stop losses higher or whatever, you know, keep an eye on that space, because
10:07 it is a buzzing space, there are orders coming with it. But I would really be a little cautious
10:12 on the entire railway pack, because of the huge rally that we've seen.
10:17 Right. Let's look at the defence sector now, a couple of stocks that are in focus to start
10:23 off with you have a Zen Technologies, which is in focus on the back of an order win. MTAR
10:28 is in focus as well. And this is because they've got the license for manufacturing mechanical
10:34 and electronic defence subsystems. And you have a DCX Systems, which actually hit a record
10:41 high today. And after announcing a joint venture agreement with Elta Systems, and the purpose
10:47 of the JV is to develop, produce and distribute obstacle detection solutions globally. Elta,
10:53 as we know, is the subsidiary of Israel Aerospace Industries, which is an Israel government
10:57 owned company, which involves aerospace and aviation manufacturing. All these three stocks,
11:04 some smart moves coming in order wins licenses. How are you looking at this space? And what
11:09 would your view be?
11:10 First of all, I think we have to acknowledge that this whole, whether you call it, I mean,
11:18 the way you approach the market is approaching a sector that's doing well, has been pretty
11:22 consistent over the last couple of years. So the minute you see, like at one point,
11:28 the chemical sector did well, and then it didn't do well. And now again, it's doing
11:32 well. So almost everything that has the word chemical in it then goes up, which should
11:36 not be the case, especially for chemicals, because you know, if you have a chemical where
11:40 prices have moved up, then I think it sort of makes sense. And I think the same as we've
11:45 seen with various stocks, now we're seeing it, and we've been seeing it with defence
11:49 stock as well. Because you know, this whole make in India and then we've had a lot of
11:55 order wins for all these companies. But just to reiterate what you were saying earlier
11:59 for PSU stocks is that the gestation period for the orders are long, so you need to keep
12:04 that in mind. So I definitely I think be excited about these stocks and participate in this
12:10 rally, but be a little cautious because it takes very long for them to fulfil, you know,
12:17 for these revenues to translate, for all these order wins to translate into revenues, and
12:23 then for it to show in your balance sheet. But it's very interesting. And what's also
12:29 interesting is that all these orders are really in the sort of, you know, they're like cutting
12:36 edge technology type orders, you know, you're talking of like the, you're not talking of
12:41 old school warfare, now you're talking of everything is electronics, hyperspace and
12:45 so on. So it's I think a very exciting time to be in that space.
12:50 Right. So interesting space that we are watching out for as Sharmila has been mentioning. Thank
12:55 you, Sharmila, so much for joining us on the show, and sharing your views with regards
12:59 to the movers and shakers in trade today. But clearly, from a market perspective, the
13:03 breadth is in favour of the bears as we speak, we are at the day's lowest levels trading
13:08 in the negative, but do we see a pickup that could coming in, there could be some short
13:13 covering in the last hour of trade, it's going to be an interesting session to watch out
13:17 for and in terms of Bank Nifty as well, cuts of around 150 points coming in there. And
13:22 if you see, in terms of broader markets as well, if you see in terms of stocks, which
13:27 are making use today or are actually seeing some good gyrations in trade, you have Alok
13:32 Textiles, Iron Exchange, IFCI, as well as NCC on the gaining end. Whereas on the losing
13:38 end, you have names like Gokul Das Exports, after the two day run up, we've seen profit
13:42 booking that's coming in in terms of Gokul Das Exports. Met Plus is trading under pressure,
13:46 Adani Green, as well as Escorts. These are a few of the names which are down in trade.
13:50 That's all that we have on this session. Thanks for watching and lots more lined up on the
13:53 other side. Please stay tuned to BK prime.
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