#AskBQ: MPC Decision & Its Impact On Stocks

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Blue Ocean Strategic Advisors’ Ashish Maheshwari and Invest4Edu’s Aditya Agarwala discuss the stock impact of RBI's commentary on personal loan growth and answer your stock queries.

Transcript

00:00 Hi, thanks for tuning in. You're watching Ask BQ, a show where all your stock market

00:04 related queries get answers. So do send in your queries through the YouTube live chat

00:09 or through the WhatsApp number or through any of our social media channels. Now, sorry,

00:14 sorry for that. Now let's jump right into the questions. Oh, let me introduce you to

00:21 our guests for today. We have with us Mr. Ashish Maheshwari, director at Blue Ocean

00:26 Strategic Advisors and Mr. Aditya Agarwal, head of research and investments at Invest

00:31 for Edu. Welcome and thank you for taking the time out. Let's get into the questions.

00:39 And the first question we have is from Abhiram and he's asking about RR Cable and Senco

00:44 Gold. So Ashish, what are the fundamentals that you see in these two stocks, RR Cable

00:49 and Senco Gold? These are in fact fundamentally very strong companies. If you plug and drive

00:57 on RR Cable, it's again one of the pioneer in cables and light and switches, etc. And

01:04 the kind of run up we have seen in Polycap, it's no wonder that of course listing only

01:10 we have seen, it's still a run in RR Cable. So my position will be to remain invested

01:15 if we are already holding this stock. My target for this stock in next one year is 2000 rupees.

01:22 As far as Senco Gold is concerned, as the gold prices are hovering at lower level 57,

01:28 58 thousand rupees. So ahead of festive season, we are going to witness a lot of new demand.

01:34 Besides this, they are continuously adding new stores which will also add to their bottom

01:39 line. So in my view, there is a big dilution gap between Titan, Sangamon Jailbury and Senco

01:46 Gold, etc. So Senco Gold is also a buy, one year target is 800 rupees.

01:52 Okay. Aditya, morning and thanks so much for taking the time as always. Ashish, morning

01:58 to you as well. Aditya, any view on these two counters on technicals?

02:02 So first talking of RR Cables, it's a fairly newly listed stock, Alex. I wouldn't talk

02:10 too much about it. As far as Senco is concerned, yes, I believe it has been extremely volatile

02:17 and recently stock has witnessed a sharp up move. Again, this is one of the recently listed

02:21 stocks. Both the stocks are showing very good uptrend, can continue to hold on to these

02:26 stocks if the collar is already holding on to the stocks. Maybe Senco with the stock

02:31 620 on the downside, look for a target of 700 on the upside, can see further legs, both

02:36 the stocks on the upside. Fair point. And recently listed, as you pointed

02:40 out, particularly RR Cable, right? Divi's Laboratories though, we've got a question

02:46 coming in from Rajesh Maheshwari. He's writing in from Indore and he's got 60 shares which

02:51 he's bought, he says, at an average price of 4555. He's looking for the short to medium

02:57 term outlook on this particular stock. We'll first take a technical view and then we'll

03:01 go to the fundamentals. He's asking whether it makes sense to hold or exit by booking

03:07 losses. And does it make sense to shift to another in the pharma space?

03:12 I believe Alex, one should continue to hold. And given the fact that he's sitting at a

03:18 minor loss, I would not recommend exiting at current levels because stock has already

03:23 undergone the correction that it had to do so. And given that entire pharma space is

03:27 doing well for itself, I believe Divi's Lab will also see a significant upside from current

03:31 levels. A good strong support at 3500 odd levels, I believe stock can easily test levels

03:36 of 4500 or 4600 on the upside. So hold it. If you're looking to buy more, maybe you can

03:42 buy more at current levels with the stock loss at 3500. On the monthly chart, stock

03:47 definitely looks like it's found the base and then headed higher in the coming months.

03:51 So you'll have to be a little patient here and you can definitely see levels of 4500

03:55 to 4800 on the upside.

03:57 Okay, we'll quickly take a view on the fundamentals as well. What's the view here?

04:01 If we talk about Divi's Lab after a stellar run in 2022 where we saw their profit almost

04:10 3000 crores, there was a significant leap in profitability of around 1800 crores. And

04:16 I'm expecting this year they'll do not more than 1400 to 1500 crores. But for timing,

04:23 I'll also recommend to stay here because I'm expecting some run up will again be there

04:31 in the defense sector like pharma. So my target for this term is 3800 rupees per annum. And

04:38 once you exit from this term, then you can either shift to Agenca Pharma or Mankind Pharma,

04:43 which can give you better returns and be easier for you.

04:46 Okay. Next up, we have a question from Netra and she has purchased Vascon Engineers at

04:53 around 55 rupees. The stock is currently hovering around 73 and I can see on the chart that

05:00 it's on an uptrend and has given about 26% returns in the last one month. Ashish, what

05:06 do you think about the fundamentals of the company and should she continue holding the

05:11 stock?

05:12 Yes, I'll suggest to continue to remain invested. In fact, to any new investors, for being sure,

05:18 you can still enter the stock. The stock is 50 degrees high today, but my target for this

05:25 stock is 100 rupees in the next six months. Again, the figures are the kind of order book

05:30 and the new orders which Vascon is getting now, whatever the losses they were incurring

05:35 in previous years, now they are potentially putting profit last quarter only we saw 55

05:41 crore profit coming in last two quarters. And this quarter also I'm expecting a very

05:47 good number from Vascon. So Vascon is a buy in mind.

05:51 All right. And Aditya, do you hold the same view as well? A buy at this point of time?

05:56 Buy, obviously it's a hold. And then if you're looking for fresh entry, you can actually

06:02 buy on minor declines because of a stellar run that the stock has already posted. Look

06:07 on multiple time frame charts and you will see stocks sitting at overbought levels. So

06:11 there can be a minor cool off, which I expect. Don't see the stock going below levels of

06:16 64. So for her, she should actually keep a trading stop loss at 64. That protects her

06:21 cost as well. And on the upside, stock can easily test levels of 100. It's a very strong

06:26 up move that I'm seeing on the charts. So that is likely to continue in the coming months.

06:31 But it can enter into a sideways consolidation phase. And then do keep trading stop losses

06:35 because these stocks usually tend to start once they start correcting, they tend to get

06:39 into that spiral of downward slope. So just to be cautious, keep a trading stop loss at

06:44 65 and look for a target of 100 first. Yeah, it's a stock that is up over 5 percent

06:48 in trade today as well. The next question is coming in from Amit Rastogi and he's got

06:53 Varun Beverages and he's or rather he's asking whether it can be bought for the long term.

06:59 Interestingly, Ashish, we've spoken about this counter in the recent past because of

07:03 the World Cup and the expectation that there could be additional consumption of beverages.

07:09 What's your view? At least in the near term, there seems to be some expectation of an improvement

07:13 in operations. But what are the long term prospects?

07:16 This is one of my favorite FMCG stocks. I'm recommending this stock. And generally, FMCG

07:27 stock grows by a ratio growth of 5-7 percent. But if you see their numbers from June to

07:33 September, in the last two quarters only, from 750 crores, they made a profit of 1500

07:40 crores. And we are not talking about any IT company or Infra company, we are talking about

07:45 FMCG or bottling companies or petri. So, these are good, very good fundamentals are quite

07:54 robust for this company. And this is going to be one of the best in FMCG. The market

08:00 is almost 1.2 lakh crore. But I'm expecting the system will touch 1000 rupees mark in

08:07 the next 3-4 months.

08:10 Right. So, there's a strong conviction by. Then I will come to you, Aditya, to close

08:16 this out because Amit is also asking for buying ranges that he can consider for this particular

08:22 counter. What can you tell him?

08:24 Maybe closer to 850, Alex, I would suggest to buy because that happens with the 20 DMA.

08:29 I've noticed from the time stock has started its up move from levels of 120-130, stock

08:35 has never broken its 20 DMA. And every time there's a minor correction in the stock, stock

08:39 tends to take support at the 20 DMA and from there it bounces back. So, 850 is where the

08:43 20 DMA is currently positioned. I believe stock can again correct to those levels and

08:47 from there bounce back. Nobody in a stock, one should just buy and keep in the portfolio

08:52 for long term. I haven't seen this kind of a cyclical up move in the stock. Very rare

08:58 stocks. So, definitely it's a buy and closer to 850 is what I would suggest. Go for a long

09:03 trade.

09:04 All right. Varun Beverages, an exceptional stock. That's all the time we have for today.

09:10 Thank you so much, gentlemen, for joining us and for answering all the questions. And

09:14 viewers, thanks for tuning in. Do keep sending us your questions and we'll try taking all

09:19 of them. Same time tomorrow at 11.30.

09:21 Same time on Monday. It's a weekend tomorrow.

09:24 All right. Same time on Monday and we'll see you then. Until then, stay tuned to BQ Prime.

09:30 Thank you.

09:32 [MUSIC]

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