- 3 years ago
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NewsTranscript
00:00 Good morning and thanks so much for tuning in.
00:03 This is straight talk on BQ Prime.
00:05 My name is Alex Matthew.
00:06 Imagine an F1 race where the race is just about to finish
00:11 with the car that you're rooting for reaching the finish line.
00:15 And just before that, that car needs to take a pit stop.
00:19 It's going to reach eventually.
00:20 You know that it's going to cross the finish line.
00:23 It's just delayed a bit.
00:24 I guess that's the story of the nifty 50 and 20,000
00:27 because in forces might just be that pit stop.
00:30 Absolutely.
00:31 And that's what is causing the delay as well.
00:34 Now, what happens in today's session
00:36 is going to be interesting because the expectation
00:38 yesterday was that though we did not hit the 20,000
00:42 mark in the last hour of trade, at least we
00:44 would open with the 20,000.
00:46 And that does not seem to be the scenario with the area down
00:49 almost 9% in trade.
00:51 But it was edge of the seat stuff yesterday.
00:54 It was like watching an F1 race, which
00:56 is why I drew that comparison.
00:57 In the last hour of trade, you were seeing tick by tick.
01:00 It was heading higher to that 20,000 mark.
01:02 And we were all gearing up, or rather everyone in office
01:05 was gearing up to tell you about the significance of that move.
01:09 Of course, it's just a number, 20,000.
01:12 But it is a landmark number.
01:13 And we have gained about 10% or so in the year so far.
01:18 We're still lagging certain markets.
01:20 The S&P 500 is up about 18 and 1/2%.
01:23 The Nikkei 225 is up over 25%.
01:26 So we're still lagging.
01:27 Absolutely, we're still lagging.
01:28 But we are one of the most expensive markets as well.
01:31 So that's something we need to know.
01:33 But clearly, Alex, six consecutive sessions of rally
01:36 that we've seen in the markets.
01:38 What is going to be interesting is we're just 20.85 points away
01:42 from the 20,000 mark.
01:44 This is basis.
01:45 The high that we hit in yesterday's session,
01:47 that was 99.92.
01:49 Overall, yes, Bank Nifty did come in as a support point.
01:53 There was outperformance with regards to Bank Nifty
01:55 as compared to domestic benchmark indices.
01:59 Let's quickly look at the resistance.
02:00 Now, the psychological mark of 20,000
02:02 is acting as a key resistance with regards
02:05 to where Nifty 50 goes.
02:06 And there has been massive short covering
02:08 that has been observed at 1,900, 1,850, as well as 1,900 strike.
02:13 With regards to Bank Nifty, the resistance
02:16 has now shifted to 4,600, 500, which was previously at 4,600.
02:21 And that will continue to act as a support from here on.
02:24 If you see the put OI, the highest
02:26 is seen at around 1,900, 800.
02:28 Whereas on the call side, the highest OI is at 20,000 strike,
02:32 whereas the next highest is 20,100.
02:36 So that's becoming the key zone that we are watching out for.
02:40 Now, we've seen long buildup in terms of the F&O side of it
02:43 in the last five of the six trading sessions.
02:46 And that is clearly indicating that there
02:48 is strong buying interest in the market as well.
02:50 In fact, if you see from the 17th of July to now,
02:53 the Nifty moved from almost 19,711 to 19,979.
02:59 But during this movement, if you talk about the put call ratio,
03:03 that fell from almost 1.44 to around 1.4.
03:06 So this is indicating that the put writers are really not
03:09 comfortable adding positions at higher levels.
03:12 So that's the overall setup looking
03:14 like from a technical and, if you see,
03:17 from a derivative perspective.
03:19 But the key question now is whether today's session will
03:22 help us hit the 20,000, or will it
03:25 be pretty much close towards expiry,
03:27 which will be by Thursday?
03:28 Because there should be some bit of profit booking
03:30 that will start kicking in.
03:31 No, certainly.
03:32 And in fact, we kind of tried to get
03:34 a sense of what the brokerages also felt about that 20,000
03:38 number for the Nifty 50.
03:40 And our colleagues were on the phones
03:43 over the course of the last couple of days,
03:44 particularly yesterday, to try and answer or get
03:47 a few answers to some very key questions.
03:50 And this is the results of that poll.
03:52 The first question was, will the Nifty 50
03:54 sustain that 20,000 mark?
03:57 As many as 14 brokerages were polled.
04:00 And quite a few of them believe that, yes, the Nifty 50
04:03 will sustain 20,000.
04:05 Five of them said yes.
04:06 But seven of them said there's a caveat.
04:09 And there is likely to be a bit of a correction
04:12 in the near term.
04:14 And just a couple of them said that it depends
04:17 on the first quarter earnings.
04:18 Which sectors will have the Nifty 50 sustain above 20,000
04:22 was the second question.
04:23 And a vast majority of them--
04:25 in fact, all of them-- said BFSI is the sector that will keep it
04:30 above the 20,000 mark.
04:32 IT is, interestingly, another answer to that question.
04:37 And in the context of what we saw with Infosys,
04:39 perhaps we might have to go back to them
04:41 again to ask the question.
04:43 And then it was divided between Capgood's Auto Metal FMCG.
04:47 The third question was, which stocks
04:49 will help the Nifty 50 sustain 20,000?
04:52 And the key answer here is Reliance Industries, which,
04:55 as you know, has been the key contributor to the Nifty 50
04:59 in the run from 19,000 to 20,000 as well,
05:02 gaining over 10% in that period.
05:06 TCS, Infosys, and HDFC Bank also seen contributing.
05:10 Which sectors will create a drag on the Nifty's rally
05:13 was also a question that we asked.
05:15 And here, too, the results were a bit of a mixed bag.
05:20 Banking, considering the kind of exposure
05:22 it has to the Nifty 50, again, four brokerages
05:26 felt that this could prove to be a drag.
05:28 And then it was quite an even split
05:30 in the rest of the sectors, with chemicals, cement, IT,
05:34 all having a couple of responses each.
05:38 The final question that we asked was,
05:39 which sectors will lead the charge beyond the 20,000 mark
05:44 in the medium term?
05:45 And here, there was a very interesting response here.
05:49 And that was that Capgood's and Infra got the highest number,
05:53 with as many as six brokerages saying
05:55 that that is a sector to watch in the medium term.
05:58 Of course, BFSI got as many as six responses as well.
06:01 And then the rest of the sectors got--
06:03 Right.
06:04 I mean, it's an interesting survey that we've done.
06:06 And with this, it clearly gives you
06:08 some bit of an indication from your own
06:10 as to where we could be headed and what it looks like.
06:13 But let's see what happens, because the initial poll
06:16 that we had was to start off with,
06:18 when will Nifty hit 20,000?
06:21 But by the time, there were a kind of rally
06:22 that we saw yesterday.
06:23 We had to actually eliminate that question completely
06:26 from the poll.
06:27 And now you have an Infosys, which has come
06:29 to derail it completely so far.
06:31 In fact, the chart is standing by with more--
06:33 he's been doing the number crunching yesterday.
06:35 It's actually pretty hard to understand
06:37 why this kind of a guidance cut that is coming.
06:39 Good morning, Tishar.
06:40 Good morning.
06:41 Good morning here, Alex.
06:42 If I want to--
06:43 allow me to extend the analogy that we
06:45 started the conversation with.
06:47 You equated Nifty 50 to 20,000 FN race.
06:50 Infosys is screeching to a halt.
06:53 That's the best way to describe what's
06:55 happening at Infosys right now.
06:56 It's a flat tire.
06:57 It's a flat tire at the end of the race,
06:59 or at the beginning of the race, because we're
07:01 beginning of fiscal right now.
07:02 So what has happened right now is
07:04 Infosys was guided for 4% to 7% revenue growth
07:07 at the end of the Q4, has now cut it further to 1% to 3.5%
07:13 now.
07:14 So what that essentially means, and what the commentary is
07:17 coming from the company is that the key reasons for the cut
07:21 in revenue guidance are the mega deals
07:22 have been pushed to the second half of the year.
07:26 There's a significant cut in discretionary spending.
07:29 There's a significant delay in decision making.
07:31 So the signings that are happening,
07:33 there's a big difference between the signings that
07:36 are happening right now and the implementation
07:39 is getting even further delayed.
07:41 The volume of the mega deals from the most important sectors
07:44 of BFSI, retail, telecom is eroding.
07:48 Decision making has slowed down.
07:50 There is no timely deal ramp up.
07:53 Infosys is expecting a pickup, maybe,
07:55 these deal conversions to show in the revenue
07:57 only in the second half of the year.
07:59 Historically and seasonally, we also
08:01 know that the second half of the year is not a happy period
08:04 for Indian IT, so to speak.
08:06 So in that sense, I would still--
08:09 I'll actually bet that the entire F524
08:12 is going to be a washout for the entire sector
08:14 because Infosys is getting for 1% to 3.5% growth.
08:17 I don't know how the rest of the others will perform.
08:20 So that question is what we're going
08:21 to pose to the expert that's joining us.
08:23 Sure.
08:24 Tushar, thanks so much for that.
08:25 Mantesh Sabbarad is joining in.
08:27 Mantesh, thank you so much for taking the time
08:29 and also for your patience.
08:31 That last point that Tushar was making,
08:33 Infosys looked at as a bellwether for the sector.
08:37 But there is a discordance as things
08:40 stand right now in the outlook that they are giving
08:43 and what everybody else seems to be saying.
08:45 Is this a washout year for the IT sector?
08:50 Let me single out Infosys vis-a-vis the other bellwether
08:53 stocks, the particularly large--
08:55 the other large three companies.
08:56 If you notice the results, and I'll
08:58 do a deep dive into the quarter one results,
09:01 and here I will look at the YOY comparison,
09:03 not necessarily the quarter on quarter comparison,
09:05 because the YOY number will tell us
09:07 what would be the remaining steam left in terms
09:10 of the growth ahead for the year.
09:12 Now, if you look at within the top three companies, Infi, HCI,
09:16 TCS, you will notice that the BFSI sector, which
09:20 is typically the strongest part of their services,
09:24 has been growing differently for these three companies.
09:27 It's a 14%, 14.4% growth for HCL tech on a YOY basis,
09:33 constant currency.
09:34 It's a 3% growth for TCS and a minus 4.2% for Infosys.
09:40 That's where the difference lies.
09:42 I think we should, therefore, single out Infosys away
09:46 from the IT sector.
09:47 I don't think the sector is facing much of a problem.
09:50 It's just that the problem seems to be limited to Infosys.
09:54 Right.
09:55 Good morning, Mahantesh.
09:56 So my next question coming to you
09:58 is, if you're saying single out an Infosys,
10:02 do we still make that divide now between the mid-cap IT
10:05 and the large-cap IT companies, wherein you do have the mid-cap
10:08 IT companies which have performed really
10:10 well in this quarter?
10:12 And that's where the juice lies now.
10:17 Yes, you're right, because most of these mid-cap IT companies
10:21 have an exposure which is non-BFSI.
10:23 They have typically an exposure on the engineering services
10:26 side, on the manufacturing side, a bit on retail digitization,
10:30 and so on and so forth.
10:31 Now, let's look at Infosys' manufacturing vertical.
10:35 They have posted a 20.7% worldwide growth
10:39 in that vertical for this quarter.
10:42 That tells you the story.
10:43 And if you look at the other Bellwether companies as well,
10:46 they have done something similar.
10:48 For mid-cap, this is like the bread and butter
10:50 kind of a segment or sector.
10:53 And therefore, we find that most of the mid-cap IT companies
10:57 who have engineering services as their core doing really well
11:02 going in, and their prospects, therefore,
11:03 seem pretty solid for the year ahead.
11:08 Mr. Samarat, Tushar here.
11:09 Just one question to you, sir.
11:11 We were chatting with Infosys early in the morning.
11:14 They said that for them, their BFSI revenue
11:18 declined by around 9% quarter on quarter.
11:20 But they are saying now they're seeing some green shoots
11:23 of recovery for them.
11:24 Do you think that this is the bottom
11:26 for certain IT companies?
11:28 Let's keep aside Infosys.
11:30 So this is the worst that can happen to IT now?
11:32 Is this the bottom that we have reached?
11:35 Probably not, because the green shoots commentary
11:39 comes really from the fact that if you correlate the IT sector's
11:44 performance with the results that some of the US banks
11:47 have released in this first quarter,
11:50 then you will notice that the banks in US
11:53 have really, really done well recovering from a low base.
11:58 And therefore, there is this hope
12:01 that most of these IT companies have
12:03 that some discretionary spends from the BFSI sector,
12:06 particularly these US banks, will come back into the game
12:12 and help them recover their past degrowth.
12:16 But having said that, the dichotomy still exists.
12:20 That means what we saw in HCL Tech and TCS
12:24 actually posting a growth versus Infosys
12:27 posting a degrowth in the BFSI segment is going to remain.
12:32 And therefore, this bit of differentiation
12:35 will continue to happen probably for the year ahead.
12:38 The green shoots would be there.
12:40 I don't disagree, simply because of the quarter one
12:43 results of some of the US banks.
12:45 But it is not necessarily green shoots
12:48 for all the companies within the Indian IT sector.
12:51 Certainly.
12:52 Thank you so much, Mahantesh, for taking the time
12:54 and for putting that into perspective for us.
12:58 We are focusing on the ITPAC, and we're
13:01 continuing to do that.
13:03 In fact, a few of the smaller companies
13:05 are going to be in focus on account of results.
13:07 And I'm talking about the likes of Emphasis, Persistent,
13:11 as well as CoForge.
13:12 Tushar is still with us.
13:14 Tushar, what should you pay attention
13:16 to when it comes to these?
13:17 You mentioned that there seems to be a dichotomy with regard
13:20 to the mid-cap.
13:21 Even Mahantesh mentioned the same thing,
13:22 that there is a certain dichotomy that is there.
13:24 If an IT company is exposed to BFSI, expect a bad result.
13:28 If they're not exposed to BFSI, expect a decent result.
13:31 That's the conversation that we are having right now.
13:33 In that way, yes, you will see the same thing
13:36 that has happened with Persistent Systems as well
13:38 and CoForge as well, which are generally
13:40 towards the engineering side of things
13:42 and not necessarily towards the BFSI side.
13:44 So they have performed relatively well to their peers.
13:47 So much so that CoForge has actually
13:49 maintained its revenue guidance for the full year.
13:52 Emphasis, on the other hand, has said--
13:54 the BFSI revenue for Emphasis has declined 9%,
13:57 as you mentioned some time back.
14:00 But what they're saying now is they
14:02 are seeing the green shoots of recovery.
14:04 That, as what Mahantesh also pointed out,
14:06 may not extend to everybody.
14:08 But the crux of the matter here is
14:11 that the mid-tier is doing better than the larger
14:14 peers at this moment.
14:15 Alex.
14:16 Yeah.
14:17 All right.
14:17 So that clearly is the focus.
14:19 And I'm just thinking about the stock performance as well.
14:23 Because you had-- and we were talking about Infi
14:26 and the fact that apart from the ADR overnight
14:29 and what we will likely see in trade today,
14:31 it's had a pretty good run in the recent past, right?
14:34 Yeah, but that is coming to a halt today.
14:37 So what about the mid-cap IT companies?
14:39 Mid-cap IT.
14:40 What are people saying about valuations?
14:42 The valuations, at least at this point of time,
14:46 I would suggest that it's, again, a wait and watch game.
14:49 We should not--
14:50 I mean, if you remove Infosys, we can equate that.
14:54 But I think we'd be fairly valued at this point of time.
14:57 Nothing more to say on that.
14:59 And it's going to be interesting to see,
15:00 because if you talk about the poll that we conducted as well,
15:03 we're still betting big on Infosys now.
15:06 What happens from there on is going to be interesting--
15:08 exactly, IT as a sector and Infosys.
15:11 So whether it's bottomed out with this
15:13 and now the green shoots will start emerging
15:15 is anyone's guess.
15:17 But that's what we need to wait and watch.
15:19 So that's with regards to where IT as a sector goes.
15:22 Lots of movement that could be expected in today's session.
15:24 Thanks, Darshan, for getting us the details.
15:26 But moving on from IT, another stock from the consumption pack
15:31 that has reported numbers is HUL.
15:34 In fact, if you talk about HUL as well,
15:35 it's an interesting one, because the way
15:37 the volume growth has panned out,
15:39 it's almost halved in this quarter.
15:41 Now, was that in line with expectations
15:44 or has that come in as a surprise?
15:46 Sesa joins in with more details on it.
15:48 Sesa, good morning.
15:50 Hi, morning.
15:53 Yes, so Sesa, overall, how has HUL actually
15:58 panned out in terms of numbers?
15:59 Specifically, if you talk about the volume growth,
16:02 a 3% number, what was the estimate?
16:07 Right, so if we have to look at HUL's volume growth at 3%,
16:12 it was less than what the street had estimated.
16:16 And this was primarily driven by the food and refreshment
16:19 segment.
16:20 So the analysts, they were estimating about 5% to 6%.
16:23 But however, we have seen a 3% growth,
16:26 which is also the slowest pace of growth for the company
16:30 in the last five quarters.
16:32 Now, if you look at the particular categories,
16:34 for example, tea, it saw a modest volume growth
16:38 as the category continued to witness consumers downgrading
16:42 to loose tea over premium teas due to higher inflation.
16:46 Then unseasonal rains have also impacted the ice cream
16:49 consumption.
16:50 So similarly, the volumes in food, health food, drinks,
16:54 and coffee were also impacted due to price hikes.
16:57 So overall, what we understand that higher inflation continues
17:00 to adversely impact the consumer spending.
17:04 And on the outlook, even, you know, the management has--
17:07 inflation is still high.
17:13 And the low product prices, it takes time to flow through.
17:19 OK, interesting points that you're raising there.
17:21 Sesar, thanks so much for joining in
17:23 and for giving us that perspective on HUL,
17:25 another stock that you have to watch out for.
17:27 Now, earnings is, of course, has been the focus
17:31 all through the week.
17:32 And in fact, there are quite a few stocks
17:34 to talk about, companies that have posted their results.
17:36 We'll start with Hemansh, who is joining in,
17:39 with a list of stocks that have posted results.
17:42 What do you have for us?
17:43 So starting off with a public sector lender, Union Bank,
17:46 which had a good showing with a net profit up over 107%
17:49 year on year, standing at 3,236 crores,
17:53 also beating the Bloomberg estimates of 2,343 crores
17:56 by a wide margin of 1,000 odd crores.
18:00 While net interest income was up about 16 and 1/2%
18:02 on a year on year basis, the gross and net NPAs
18:05 were down by 7.34 and 1.58, respectively,
18:08 on a quarter on quarter basis.
18:10 Then comes the fourth largest cement producer, Dalmia Bharat,
18:14 which posted their numbers yesterday,
18:16 wherein the net profit fell short of 100 crores
18:19 against the Bloomberg estimates of--
18:21 and stood at roughly 144 crores, which is down about 30%
18:25 year on year.
18:26 Commentary from the management reflected optimism
18:28 for the year ahead and cited the strong demand environment
18:31 and the kicking in of the real estate cycle.
18:35 They also noted a 12% growth in volumes and softening
18:38 of fuel prices, which has stabilized expectations
18:42 for the cement prices in the year ahead.
18:44 And profitability prospects are also
18:46 set to improve in the coming year.
18:48 But this result was still under expectations.
18:52 Lastly comes India Mart.
18:53 The mid-cap posted 77% jump in net profits,
18:56 as margins remain range-bound, around 27%.
18:59 Manpower and other operating costs
19:02 cooled off by 2% to 3% given the inflationary pressure softening.
19:07 The stock has given returns of roughly 35% year to date,
19:10 while the nifty 50 has only given returns of about 10%
19:14 in the same period.
19:16 So that's a summation of the three companies
19:18 that they're earning.
19:19 I wouldn't say it's only 10% because it's
19:22 quite significant for the benchmark index.
19:24 But thanks so much for that.
19:27 And a lot of companies which will see good moves
19:31 on this kind of numbers as well.
19:33 So I think we will be watching out for it.
19:35 And we'll be talking more.
19:37 But thanks so much, Himansh, for that.
19:39 India Mart, Indimesh.
19:40 We're going to be talking about a buyback as well.
19:43 Because the number is going to be key to watch.
19:46 But apart from this, I think, Alex,
19:47 there are a lot of other companies also.
19:48 I mean, it's going to be a heavy day.
19:50 In fact, Mika also has another list
19:51 of companies which have reported numbers.
19:54 Mika, what do you have on your cards?
19:56 OK, so starting off with United Spirits,
19:58 the consolidated revenues were down 18.55% year on year
20:02 at 5,830.1 crore.
20:05 However, the net sales, which is from the alcoholic beverage
20:08 side, was up 28.6% at 2,668 crores,
20:16 which was led by strong growth in the standalone business
20:19 and also the revenue driven by the Indian Premier League
20:23 new five-year media rights cycle.
20:26 EBITDA was up 102.67% at 713.5 crores.
20:31 And the company's net profit jumped 82.57% this quarter
20:36 at 476.7 crores.
20:39 Next, we have ICICI Securities, whose revenues were up 18%
20:42 year on year at 934.4 crores, which
20:46 was led by growth in the broking income and cash
20:48 segment, which are gaining momentum,
20:50 and growth in the investment banking segment.
20:53 That was down 1% year on year this quarter at 271 crores.
20:58 The equity revenue segment, which
21:00 contributes to 23% of the total revenue of the company,
21:03 grew 7% year on year.
21:04 And the issuer services and advisory income
21:06 grew 185% quarter on quarter.
21:10 The total client base this quarter
21:12 grew 16% year on year at 9.3 million.
21:15 Next, we have 361 VAM, which was previously
21:18 called IIFL Wealth Management, which also posted
21:20 their results for this quarter.
21:22 Revenue increased 18.64% at 558.96 crores.
21:28 The net profit was up 17.35%.
21:31 The wealth management profit before tax
21:33 was up 97.19% at 144.35 crores.
21:40 The asset management business launched
21:42 its fourth private credit fund, which raised over 2,100 crores.
21:47 The business also launched a FlexiCap mutual fund
21:51 in June 2023, whose NFO garnered over 200 crores.
21:56 The board also approved the interim dividend
21:58 of rupees 4 per share.
22:00 And lastly, we have Tanla Platforms,
22:03 which has posted a 13.86% revenue growth at 911.1 crores.
22:09 EBITDA was up 39.42% at 182.2 crores.
22:15 And PAT was up 34.84%.
22:19 Significant events during the quarter
22:21 included the acquisition of Value First Digital Media
22:23 Private Limited, which was done for an all cash
22:26 consideration of $45.5 million.
22:29 And the company also signed a direct contract
22:31 with the world's largest e-commerce and cloud computing
22:34 company for a CPaaS services contract.
22:39 So lots to watch out for in today's session.
22:42 Thank you, Mika, for getting us those numbers.
22:44 So watch out for all of these smaller companies in trade.
22:47 But another key company we are watching out for
22:49 is Reliance Industries in trade today, Alex.
22:52 It has been in the news on the back of the demerger.
22:55 And now a good time in terms of the earnings coming in.
22:58 Sajid is joining in with more.
23:00 Sajid.
23:01 Good morning.
23:01 You have been-- good morning.
23:02 You've been looking at Reliance over the last couple
23:04 of sessions from the demerger to now the earnings.
23:08 What is the picture looking like?
23:10 So it's going to be earnings, which
23:12 is excluding the financial services business,
23:15 because it got demerged from Reliance.
23:18 The revenue is expected to jump nearly 6.4%
23:22 on a sequential basis in Q1.
23:24 And net profit is expected to jump nearly 33%.
23:27 And that's primarily-- will have an impact.
23:29 The IPL will have an impact, because we
23:31 saw some of the media companies of Network 18 and TV18
23:34 having good set of revenues in Q1,
23:37 largely led by the IPL advertising revenue that
23:39 came in.
23:40 But defining margins is something
23:41 which is going to drive growth in the first quarter.
23:45 And it's going to hit margins for Reliance.
23:48 We saw the Singapore GRMs hitting $25 per barrel
23:51 in the first quarter.
23:52 And that's going to have good impact on Reliance net margins
23:57 and net profit going forward.
23:58 Geo revenues or the telecom revenues
24:01 are expected to grow by 9%.
24:03 Marginal jump in ARPUs or average revenue per user
24:08 to 171 rupees per month per subscriber.
24:12 And the subscriber base is expected
24:14 to be around [INAUDIBLE] subscribers.
24:17 And it's marginally declining subscriber base
24:20 because of consolidation in SIM happening in the industry.
24:23 And a sequential fall in operating margins
24:26 in the retail business, that's we're
24:28 going to see, though on a wire-by-wire basis,
24:30 it will be a huge jump because of the kind of store additions
24:34 that have happened in Reliance retail in the last one year.
24:37 OK, so there you have it.
24:39 And in fact, considering the focus of yesterday
24:42 where we were talking all about GFS,
24:43 today we're talking about Reliance Industries.
24:45 And we'll have to see whether that anchors
24:48 the rest of the benchmark, which has proven the case for--
24:51 So yesterday, Reliance did anchor.
24:53 And we saw-- and while we were watching Nifty heading
24:56 to 20,000, we saw two trends happening.
24:59 Infosys declining or showing signs of weakness.
25:03 IT was up yesterday.
25:04 Infosys especially in the last half--
25:06 And the longs were being unwound.
25:08 In the last half.
25:09 And we saw longs in Reliance also getting unwinded.
25:12 And so these two trends indicated
25:15 that it may not hit 20,000.
25:17 We don't know what's going to happen today.
25:19 We don't know what's going to happen today.
25:20 I know what Sajid is thinking, though.
25:23 Thank you so much, Sajid, for that.
25:25 Several other stocks.
25:26 And interestingly, we are focusing so much,
25:29 Heeral, on the Nifty 50 and the benchmark index.
25:33 But the broader end of the market
25:34 has seen a lot of action.
25:36 So you see a lot of smaller companies
25:37 that have gained very handsomely, very significantly
25:41 in the last six months, five months or so.
25:44 Absolutely.
25:45 And right now, the trend that we're seeing
25:46 is it's more of stock-specific action.
25:48 But you're not seeing a major move
25:49 in terms of the mid-cap and the small-cap index.
25:52 The action is absolutely in the benchmark indices.
25:55 So what's in store, that's what we have to wait and see.
25:58 All right.
25:58 Let's talk about a few more stocks to watch.
26:01 Varsha is joining in with some more pieces of information.
26:05 Varsha, good morning.
26:06 What are you picking up?
26:07 Good morning.
26:08 So the first company that we have is Hindustan Aeronautics.
26:11 So HAL, the Argentinian defense minister,
26:14 visits HAL and signed a letter of intent
26:17 on cooperation for light and medium utility helicopters
26:21 for the armed forces of Argentina.
26:23 The next company that we have is LTI Minetree.
26:26 The company announced strategic partnership
26:28 with Saifarma to enhance the threat intelligence
26:31 capabilities of its XDR platform.
26:35 L&T, through its L&T Innovation Fund,
26:37 recently invested in Saifarma in a pre-series B round
26:42 of funding.
26:43 The next company that we have is Tata Motors.
26:45 JLR today announced the appointment
26:47 of Adrian Mardell as CEO and Richard Molyneux as CFO.
26:52 The next company that we have is UTI AMC.
26:56 UTI Mutual Fund launches UTI Balanced Advantage Fund,
26:59 an open-ended dynamic asset allocation fund,
27:02 investing in a diversified portfolio of equity
27:05 and fixed income.
27:06 The portfolio of the scheme will be dynamically
27:09 managed based on valuation and fundamental driven
27:12 in-house propriety asset allocation model.
27:15 The NFO starts on July 21, 2023 and closes on August 4, 2023.
27:20 The last company that we have is Indiamart Intermesh.
27:23 Now, the board of company has approved buyback
27:26 of rupees 500 crore, consisting of 12.5 lakh shares,
27:30 representing 2.04% stake via tender offer.
27:35 Now, the buyback price will be 4,000 per share,
27:38 a premium of 38% over Thursday's closing price.
27:41 Now, this is interesting stock.
27:42 First, Indiamart has got good results
27:45 than following this buyback.
27:47 So interesting stock.
27:47 Let's see.
27:48 Oh, certainly.
27:48 So there could be movement on that one.
27:50 But thank you, Varsha, for getting us
27:51 the details within Indiamart.
27:53 Another company which is looking at a buyback is L&T.
27:56 That also is going to be interesting to watch out for,
27:58 because the previous buyback that they had announced as well,
28:03 that was something which just fell through the cracks.
28:06 From there on, what would come out of the board meeting
28:09 is going to be interesting.
28:10 In fact, Rishi is standing by with some other stocks
28:12 to watch, highlighting L&T in trade today.
28:15 Yeah, so L&T has announced its plans for buyback yesterday.
28:18 And if you look at it, in 2019, it had another plan,
28:22 but it was rejected by SEBI.
28:23 Now, this rejection was because post-buyback debt
28:27 to the debt-to-equity for Larsen and Toubro
28:31 was exceeding the SEBI regulated to.
28:35 But post that, SEBI has relaxed the norms.
28:38 And it has said that even if the consolidated post-buyback
28:41 debt-to-equity crosses 2, its financial subsidiaries' debt-to-equity
28:46 should not cross 5 is to 1.
28:48 Now, if you look at currently the debt-to-equity for L&T,
28:51 it stands at 1.16 compared to the 1.8
28:56 during its previous buyback attempt.
28:58 And similarly, if you look for L&T Finance,
29:00 which is its financial subsidy, it is also quite low
29:03 compared to the norm.
29:04 So it is currently at 3.8.
29:06 So there's a good chance that this time L&T will
29:09 get an approval for its buyback.
29:12 Now, some of the other stocks in news
29:14 is Jindal Stainless, which acquired 100% of Jindal Units
29:18 Steel Limited.
29:19 So Jindal Units Steel Limited is also
29:21 part of the larger Jindal Stainless group.
29:24 It acquired the additional 74% stake for 958 crores.
29:28 So Jindal Units Steel, it operates a 1.6 million ton
29:33 hot strip mill and a 0.2 million ton cold rolling mill.
29:38 And it is also undergoing an expansion of 3.2 million tons
29:41 in Odisha.
29:42 So all of this will also come into play for Jindal Stainless
29:45 as well.
29:46 Then, Alcoago Logistics had its monthly update for June.
29:50 So if you look at its less than fully occupied container
29:55 volume, so that 7,45,000 cubic meters.
29:58 And this was down 8% year on year
30:01 because it was witnessing more and more competition
30:04 for incremental volumes.
30:07 Its container utilization index was also at 92,
30:10 which meant that it has fallen 8%.
30:12 And if you also look at the FCL, which is the full container
30:15 load volumes, it was at 48,000 TEUs,
30:19 which was again down 11%.
30:21 And also some primary market action.
30:23 So Utka Small Finance Bank, which had its IPO recently,
30:25 and it was subscribed about 102 times,
30:28 it's getting listed today.
30:29 So that's something to look out for.
30:31 All right, so that's action in the primary market.
30:33 More action to talk about in the primary market.
30:36 In fact, there is an IPO that opens for subscription.
30:40 And that is Yatharth Hospital and Trauma Care Services.
30:44 We were talking about health care as a pack not too long
30:47 back and we saw quite a few of them rally.
30:49 Let's see what the kind of interest in this one is.
30:52 Saloni is joining in with more details.
30:54 Morning, Saloni.
30:54 What do you have for us?
30:55 Good morning.
30:56 So as you said, the IPO for Yatharth Hospital and Trauma
30:59 Care Services, it's going to open on the 26th of July.
31:02 And it's going to close on 28th July.
31:05 So the fresh issue size has reduced from 610 crore rupees
31:09 to 490 crore rupees.
31:11 After the company raised 120 crore rupees
31:14 via pre-IPO placement of 40 lakh equity shares
31:18 at a price of rupees 300 per share.
31:21 There are also 65.51 lakh equity shares
31:24 for an offer for sale by the promoters of the company.
31:27 The fixed price band for the IPO is rupees 285 to 300 rupees.
31:33 And the company commenced its operations in 2008
31:37 with a clinic in Noida.
31:38 And currently, they operate three super specialty hospitals
31:42 located in Delhi NCR.
31:44 The total current bed capacity of Yatharth
31:46 stands at 1,405 beds.
31:50 The proceeds from this IPO will be used for various purposes.
31:53 So an aggregate of rupees 245 crores
31:57 for the repayment or prepayment of certain borrowings
32:00 of the company and its subsidiaries.
32:02 Also, rupees 130 odd crores for funding capital expenditure
32:08 expenses of the company and its subsidiaries.
32:11 Rupees 65 crores for funding inorganic growth initiatives.
32:15 And the rest are going to be used for general corporate
32:17 purposes.
32:18 The shares of Yatharth hospitals will list on stock exchanges
32:22 on 7th August.
32:23 So let's watch out for that.
32:24 Absolutely.
32:25 And this is going to be interesting to watch out
32:27 for as well because majority of it,
32:29 I mean, there is two parts to it in terms of the OFS
32:32 as well as repayment of debt.
32:34 And you're talking about a CAPEX that will be met.
32:36 And yesterday's session also, you
32:38 did see some bit of movement that
32:39 happened in terms of pharma names, specifically
32:42 with Dr. Reddy, Sun Pharma.
32:43 These were movers in yesterday's session.
32:45 So interesting space to watch out for and interesting day
32:48 of trade as well with one of the biggies that
32:50 will be reporting earnings.
32:51 That's Reliance Industries.
32:52 And a lot of action in the IT pack
32:55 is what we will be watching out for.
32:57 And that's a wrap from Alex and myself.
32:59 Thanks for watching.
33:00 And lots more lined up on the other side.
33:02 Please stay tuned to B2Prime.
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