- 6 weeks ago
Indian equity markets opened on a cautious note as the Nifty index fell below the 23,700 mark during range-bound trading. Precious metals including gold and silver recorded gains due to global tensions, while Brent crude oil remained near 97 dollars per barrel. In corporate updates, Samsung India reduced its workforce by 80 to 100 executive positions following declines in smartphone sales and rising chip costs. Shiprocket narrowed its quarterly net loss to 13.7 crore rupees, reporting a revenue increase of over 33 percent year-on-year. Sector analyses showed input cost pressures and high base effects affecting growth in automobile and consumer durables, alongside order inflows for defence, aerospace, and shipbuilding companies. Metropolis Healthcare outlined a three-year strategy to expand its collection network to 7,500 centres and increase margins. Meanwhile, food safety officials in Bengaluru conducted surprise inspections at Swiggy Instamart and Lio Mart outlets in Lingarajapuram, temporarily seizing a facility after discovering expired food products on the premises.
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NewsTranscript
00:00Currency this morning at 94.51 versus 94.49 is just about steady while gold is surging 700 rupees this
00:10morning to about 1.54 lakh per 10 gram and silver up 1700 jumping to 2.41 lakh per kilo.
00:17So again in precious metals and on the back of global tensions this morning. We'll have Damesh Kant with us
00:23shortly. It's expiry today as well. Markets otherwise expected to remain flat to range bound. We're already at 23.744
00:31cracking that 23.800 mark yesterday. Brent continues to hover around that 97 mark. So we're looking at slipping below
00:4023.700 today as you can see indicated in the pre-open and watching out for defence of course as
00:47a huge increase.
00:47area of focus. Other stocks in news will include the likes of Adani Power, Shiprocket, Swiggy, Newland Labs to name
00:56a few that have been in the news for various reasons and I'll take you through some of those as
01:01well. Adani Power on the GVK Energy Acquisition, Swiggy has had a stake sale in Lynx Logistics and new orders
01:11for GE, Varnova, T&D in India. So these are some of the names that will be in focus on
01:16news based advertising.
01:17action. We're of course continuing to track the impact of the primary market action on the liquidity for the secondary
01:26markets as well but beyond the index perhaps worth looking at some of the broader marketplace and where we could
01:31see some action there.
01:33you know we have seen insurance in focus for example hospitals so on and so forth so these micro pockets.
01:41Shiprocket has reported a net loss of 13.7 crores in Q1 that has narrowed from about 18 crores a
01:48year ago. Revenue grew 33% year on year 33.8% to 592 crore rupees and loss has also
01:56narrowed. This is the first set of results post listing.
01:59So shiprocket is actually up 3% in trade today and looking good. We've got the latest job reports coming
02:06in. Let's take you through that as well. Job cuts at Samsung India. 80 to 100 executives have been asked
02:13to leave.
02:13These layoffs include several top officials and this is amid a dip in smartphone sales. Handset prices also up on
02:22remember on the memory chip price hike. So that's the latest with Samsung asking several key executives to leave in
02:30a slew of layoffs.
02:32including top officials on the back of a dip in smartphone sales. And remember those handset prices have also been
02:39climbing.
02:40Dermesh Sharkan joining us this morning. Dermesh good to have you with us. I want to bring you back to
02:45equities for a moment and take a look at what's happening. Still hovering around 23,700.
02:50And we have been seeing you know gradually those declines chipping away at the index even though we've been seeing
02:56range bound trade for 2-3 weeks now but we have been steadily losing luster.
03:01Adjust fellas Asia.
03:03India, good morning Ravva. I mean that's the texture of the headline index in FT50. The reason being still trading
03:12at 17 times 1-1 year forward TEE multiple, the expectation of earnings growth is ten to twelve percent growth
03:19which puts a peg ratio higher
03:21than one however middle mid cap small cap and micro cap but still uh they may be trading in
03:2626 27 seven days one year for multiple but the growth rate is in excess of 30 percent
03:32and the management commentary particularly has been pretty strong so then we are seeing a lot
03:36of action happening out there so there's a clear dichotomy between the headline index and the
03:40broader market so if you look at bother market i mean the market is pretty much fine and doing
03:46fairly well if you are sticking to the right sectors and pockets and the sectors are one is
03:51the entire ai data center thematic play other is aerospace and defense play if you are sticking
03:58out there and the third which has been languishing but our mind should pick up uh quite soon is the
04:04entire banking and bfs bfsi space along with the metal counters so these are the pockets where we
04:10are keeping a clear eye on speciality chemicals have run up quite well so on declines they can
04:16still bought into so this four five sectors is what i will be driving the market going forward
04:22all right fair enough talking about broader markets and i'm going to pull out some key picks
04:26to keep in mind to maybe watch out for today or in the near term uh you know we've been
04:31talking about
04:31action in the broader markets but specifically what are you looking at
04:35so one is the entire you know data center ai and related uh thematic place so youtube networks
04:43being the case in point esds we had a subside rating on the ipo and it doesn't fairly well but
04:48again if this australian deal materializes which is subject to they're getting the usd so it will be
04:55more of a 1.2 billion dollar order info flowing in and that will give you a visibility of at
05:00least
05:017 to 10x their current top line and that will translate into the bottom as well so even this
05:06hundred percent gain will look you know quite cheap if entire things goes through as of now it's still
05:12working progress in the making but going by the you know historical and the execution track record of
05:17the company we think that this is going to flow in network technologies is another stock in the same
05:23basket though into a high-speed computing and solutions framework but again it's a data center
05:30infrastructure play so nvidia gpus that's company also it has been a bit volatile and expensive but
05:37you continue to stick to that so this is one theme which we are focusing on the entire ai and
05:43data
05:44center play and metals i mean it has collected quite a lot if you look at the metal prices in
05:49the
05:49international market they have been formed i mean copies of around 18 19 percent aluminum is up 10 11
05:54percent zinc is up 23 24 and this will definitely translate into their profitability so hindustan
06:00zinc vedanta nebulium vedanta limited and alcohol jsws of the world which one should be looking at
06:06from a trading perspective so this looks pretty well on the bfsi front the housing finance companies is
06:14what we have been liking quite a lot though the price action has not been that commensurate off late
06:20uh pnb housing and lx housing finance did see some traction what we like in that pack is other housing
06:26finance uh we have been liking that company quite well they have been delivering it in 19 percent kind
06:31of our growth on rate on the euro front and 4.23 percent of an roa so that is likely
06:37to continue
06:37and one more pick from the real estate and that is remote reality where i think it's a lot for
06:44and our
06:45target prices are 656 on that counter all right uh we'll talk more about real estate in a moment uh
06:53also the knowledge realty trust they've approved plans raise up to thousand crores for fresh issuance
06:58uh remember this is uh also a recent listing so just marking that for you uh index as expected down
07:05about 70 80 points so just below 23 700 uh that we're looking at uh in the pre-open as
07:11it just about
07:12settles there you have it and uh so continuing to look tentative so to speak no major fresh trigger
07:18that's driving the markets we're not too far from festive season uh but we'll come back and talk more
07:23about that given that a lot of those q2 earnings will come out around that time and we are waiting
07:28to see whether or not we see a pinch uh on the q2 numbers on the back of those higher
07:33cost pressures
07:33due to the war defense is of course running up today up about a percent uh on the gainer's list
07:40htfc live hidalko bel so as dramesh was also saying waiting for some of those financials and metal
07:45stocks to come back into action uh smattering today aisha motors um vajaj fincer some of the other names
07:52in the green on the downside mixed bag inter globe tech mahindra sriram finance it continues to receive
07:58a hammering uh m m access and adani enterprises so auto also staying on the uh downside today largely
08:06and um slew of price hikes that have been coming in for auto as well so the sales numbers not
08:11managing to really spark that kind of buying as we have usually uh seen on the back of those kind
08:16of momentous numbers uh vix is steady um but clearly the backdrop or the context of the market
08:22still remains a little quiet or cautious so to speak so that's really uh the setup for you this
08:29morning right now uh we've got um you know i would say you know with the festive season around the
08:35corner
08:35darmesh but everything is looking incredibly muted uh so is this really just about the global
08:42situation right now or is the market waiting for an opportunity to crack because i'm just just playing
08:48devil's advocate here but uh you know we're not seeing any kind of um pickup in momentum could be
08:55driven of course by challenges on the liquidity front as well but what do you think will actually get
08:59things uh to start to move again i think this is a mix of everything what you spoke about uh
09:06immediately i mean as far as festive season is concerned one is the high base effect will kick in
09:11from q3 onwards because ght rollout was there last first season and last week of september saw a
09:18quite you know uh pull up in the uh demand side so automobiles will definitely see a base effect
09:26playing out if i was just looking at the august numbers and comparing with last year's september
09:30numbers so there the growth has been tempered to you know five to seven percent and that is what
09:34the industry has been guiding so 20 percent plus kind of a growth rate will not be there on the
09:39cards for the taking for next three four months and that is where the challenge of valuation will
09:43creep in at the same time input prices as you have already highlighted is already up so some pinch out
09:48there multi i mean take took some price hike yesterday but to my mind it was very late you know
09:53five side coming into play so that will be eating the margin so this is playing out similarly on the
09:59consumer durable side be it ac makers or the kitchen appliances maker electronics maker like voltas
10:05whirlpool and all and they are also facing input price pressures out there so would be some muted kind
10:12of growth and again the basic design what i like i mean what we like in that space is lg
10:17electronics
10:17the numbers of last month was quite solid and going forward on valuation fund it's cheaper than the
10:24others in the peer group so that will give it a added advantage and since we walk into the winter
10:29season it's more of a consumer appliances play there are room ac or industrial ac kind of a play so
10:35there
10:35i think a lot of juice is there to be for the taking so above i mean from just from
10:42the purely festival
10:43point of view one should be skeptical and be careful about picking up stocks because what i have done
10:49well so far may not be doing so well going forward i'm not saying the prices will correct sharply
10:54but it will not give you a meaningful upside
11:02all right lg in fact uh yes copper search is highest ever on the london metal exchange
11:08and that's also driving that counter so keep an eye on that one as well so that's on lg electronics
11:14uh today flat but definitely a boost for for a company like that uh now you know there may
11:20of course talking us through some key factors there just want to bring up esds it's a recent listing
11:25and it was up uh 20 percent uh yesterday at circuit we'd marked it for you and today as well
11:32it's seeing
11:33a jump up to about 15 percent esds software i know it's a recent listing darmesh but i don't know
11:38if
11:38you had a look at it during the uh ipo listing process and what's your view on the counter it's
11:43back to back uh seeing uh you know huge jumps post listing trading at 12 33 13 up today yeah
11:52i mean we
11:52just spoke at the beginning of our conversation about this company so it's setting it up very pretty
11:58a good place on the data center play from the architectural stack point of view the only
12:05very nearby if you can say a peer group or a competitor is e2e networks which is a hyperscaler
12:12purely indian hyperscaler so that's companies also doing well what sits in esds is their jv with the
12:18south as australian company uh it will be a 1.2 billion dollar kind of arrangement if it works through
12:25but
12:26the only caveat out here is that australian company has to qualify in the u.s to get the
12:33entire data's interest as a structural stack done so that is still pending unless that happens
12:40this order flow is subject to that but if it does goes through then you are looking at a top
12:45line of
12:46more than 10x kind of growth for this company and in light of that this 150 kind of an up
12:52move
12:52will still be cheaper so that is what we have we have recommended strong buy on this counter at the
12:57ipo though i mean allotments are very few but if somebody is buying in the secondary market i mean
13:04still you can buy it please have two to three years framework in mind if you are buying at current
13:10levels to our mind in next three years is still a developer from here okay uh just want to pick
13:17pull up
13:17uh g varnova because that's moving on the order win news uh so that's uh that's buzzing this morning
13:24and i also want to talk about uh defense uh on the huge defense push that we're seeing from the
13:30government announcing uh you know a slew of orders there um you know we have been talking about the
13:36potential for defense a lot of uh those stocks have already run up of course but dharmesh going forward
13:41what would you be bullish and what would you be picking within the basket particularly on the psu side
13:47so as far as you know the government initiative is concerned in the news flow for the last one and
13:51half year has been very constructive so the order book has been swelling and every month you get a
13:57fresh order info coming in so as a basket the entire defense group in the listed spaces the hall is
14:02sitting at five to six time uh book to build ratio so that's the kind of quarter built up has
14:07been
14:07there what has been challenging in most of the defense companies has been the execution part so last year
14:12definitely there was a challenge this year onwards we think this challenges gets sorted out and more
14:18on the delivery front is likely to happen so 15 16 percent kind of a cager is expected what we
14:23have
14:23been liking particularly in this space though the shoppages have not moved that much away i mean
14:28it's stagnating and concentrating in a particular range is hendustan aeronautics bharat electronics and
14:33the machgaonautics so hl they already got 10 gf 404 engines so that aircraft will be on boarded soon
14:42at the same time light compact helicopters and imhr that medium range helicopters will also be rolled
14:50out if that order is also likely to come to them so the plenty of uh opportunities out there bel
14:55again
14:55the radar systems everything they are more of our suppliers on a day-to-day basis so that will pay
15:01out for
15:01them march guard off we are looking very closely for the thyssen corp uh you know jv to happen if
15:06that
15:07happens there's a one like kind of an opportunity which is five times uh present order book they're
15:11sitting at so even if 50 percent is 50 000 close of water will flow to them then it's an
15:16equal
15:16submarine marine it will base it on a different orbit all together so these three companies we like
15:22particularly in a defense space but as a basket you can play the others as well
15:28all right so lots of action in defense we've got copper prices on the move so take a look at
15:33hindustan
15:33copper uh ship rocket on those good earnings is also looking good today so let's pull up some of
15:39those in the sun copper up about three percent uh we've got ship rocket and a lot of order win
15:45news
15:45coming in across the board uh we've got uh sansera engineering that's also up about three percent so i'll
15:51just bring that one up for you ship rocket's climbing up six percent this time uh looking
15:55really strong uh this morning on the back of those earnings all right let's also shift focus to
16:02healthcare metropolis has laid out its three-year growth roadmap with a focus on expanding its network
16:07broadening its service offerings and leveraging technology plans to make its collection center
16:13network now to 7 500 and is also targeting margin expansion now over the next two to three years
16:19uh neetuchandra caught up with ameera shah let's listen in
16:25thanks nice to see you uh you know it's been a it's been a really good uh two three years
16:30for
16:30metropolis in the way that while the financial metrics uh were obviously strong but what was
16:36even more important was the kind of processes and systems that we were building internally
16:40so we kind of shed our skin in terms of letting go of sort of further quality businesses
16:46um or you know and we've only made sort of uh investments in to strengthen the organization so
16:51overall last three years we've seen sort of um 18 percent on revenue we've seen to 18 percent on
16:57ebitda about 22 percent on fat uh so it's been a strong uh period and the team the tech stack
17:03the
17:03infrastructure processes have only gotten stronger that puts us in a very good position where not only as a
17:10balance sheet we have not debt we have you know loads of cash we're generating uh the team is all
17:15ready to go and we are finding that now um the momentum of the market is also really helping
17:20so we started this first quarter sort of on a strong note of about 17 percent revenue growth
17:26and obviously the same sort of growth from a higher growth actually from 20 plus percent on our ebitda
17:31basis i think it takes us into our three-year plan where we're focusing on sort of four or five
17:37uh
17:37different levers right i think one big lever is about accelerating the network distribution so
17:43we currently have about 5000 plus centers and in the next uh including this year and the next two
17:48years we would like to take that up to about 7500 points so really building 50 capacity more in
17:54collection center network so that's sort of one lever i think the second lever is out of these 5000
18:00centers we have about 800 centers that we own and operate which is very different compared to our
18:05year set which has mostly franchise centers um these 800 centers are only used for pathology today
18:11and we believe there's a great opportunity to use them for other services as well so we're adding
18:15basic radiology we're adding vital checks we're adding nutrition we're adding many other services
18:21that we believe could broaden the scope of services as a basket that we offer patients and we're doing
18:26this because we find that patients trust us so much that they're asking us and saying look can you
18:30provide us more things under the metropolis umbrella so i think that will be a second expansion journey
18:36that we'll go on which is in the same infrastructure but an expansion of of sort of services um there
18:41as
18:41well i think along with that you know the other thing that we really want to do is um sort
18:47of the tech
18:47stack that we built the tech architecture really uh make it actually expand to automate everything so we
18:54want to really become a tech enabled company uh in the next few years so while we obviously have all
18:59the
18:59routine staff we want now every part of metropolis to be technology driven so ai and tech driven so i
19:05think that's going to be the next journey we're on and last is i think we also believe that margin
19:09expansion is you know really doable for us so uh while uh you know the last three years we've ended
19:15this fy26 on a note of about 24.4 percent ebitda uh actually it was closer to 25.9 because
19:24it was
19:24getting diluted because of the core uh acquisition that we did which was at a loss when we acquired
19:30it um but over the next two three years we expect core to come up to a uh group level
19:35ebitda uh and
19:37overall ebitda for metropolis to move up to 27 to 28 so i think overall we're excited about the three
19:44journey and uh you know looking forward to it all right surprise raids on swiggy instamart leo mart in
19:54linga rajapuram in bangalore this is a health department officials conducting surprise raids there
20:00and this is following complaints regarding violations of food safety norms during the inspection
20:05officials reportedly found expired food products being stored and sold at the outlets officials also
20:11detected other alleged violations of prescribed food safety guidelines taking serious note of the
20:16violations the health department has temporarily seized the mark pending further action officials
20:22are examining the seized products and records as part of the investigation we'll keep you posted
20:27that's a wrap from us uh this morning thanks for watching and do tune in at 3 pm for closing
20:31action