Zomato Will Continue To Go Up, Continue To Buy Capital Goods Stocks: Global Foray | CNBC TV18

What is your own sense and you know how the market trades from here? Well, actually what's what I see is that people who believe that Modiji is going to come back with a thumping majority have been hopefully buying on dips, The FIS have been selling slowly. I think one of the reasons why you've had these MNC infrastructure companies go down and come you know jump up is probably because they've sold, have been sold off and then after that they've been basically you know people are obviously jumping back in. See, I'm a great believer that the infrastructure spend of our government is going to continue and whichever government is in power, that money is going to continue to be spent. And therefore these infrastructure companies whether domestic or international, they're going to continue to do well. And that that is what we are seeing. Again, India Inc has not really doing, they're only just starting to do CapEx. So then for them to come back in the cycle will take a couple of years for for those numbers to to, to pop up. But what is happening is it's putting some pressure on the PSU banks because there are some banking generally is is getting some pushback as we're seeing in the Nifty bank index. And I think that you know the the banks are having to deal with you know lower limbs and as well as you know some maybe lesser MP as but there's still MP as in the system. So I think that the combination is, is good, it's the market settling. But the reality is that you know those who believe that Modiji is going to come in and I actually believe that they're going to get a majority are looking to buy on dips and it's a great opportunity And those who believe that Congress is coming in short the market. So it's a very interesting market trading position which I guess will go up and down in the next 15 days and that's good, good fun for those who are in the middle for the trip. Prashant as you know. Pashupati, hi, good afternoon. As Nigel is you know, he's been telling me, listen don't start getting, you know dizzy just yet. There's a lot more of this because of 15 trading sessions ahead to be get to the final answer. But Pashupati, you were just talking about PSU banks and for reference I just want to pull up the one year chart of the Nifty bank and the PSU banking index. I mean and the numbers are really a story in themselves. The Nifty bank is up barely 10% in the in the last one year and then comes the massive PSU banking rally where that index has gained 70%. So 10% of a gain versus 70% of the gain. Now the reason I'm asking Bashupati is because you know some of the the mid size PSU banks, we're seeing very sharp reactions today wherever there's a small miss on asset quality, maybe you know quarterly rise in slippages. How would you read into this? Would you give some of these PSU banks of free pass The management are saying is a seasonal thing, not much to worry about Oregon. Is this the time for a shift? Offload A bit of the PSU maybe? Get back to private. Obviously 70% gain means one should offload. The reason why, according to me, the Nifty Bank index has not really moved is because the real the three heavyweights. The two heavyweights which have not moved, one is Kotak and one is HDFC Bank and those have not really moved with the market. So that's why they did a drag on the Nifty bank because they're a major portion of it and you know I think they're they, they have seriously underperformed the market. And I think that in the consolidation of HDFC Bank into HDFC is going to take time. Yes, it'll be a successful merger, but you know I think it's at least three to four quarters before you begin to see the see the synergies and Porter is also going through the same thing that probably ICICI went through earlier which is you know some curve on new credit card issuance and things like that. While they clean up their bank, they valid their technology platforms which again have been have come under pressure. So it's good. On the other hand RBI is holding the big banks down. It's not good for the for the market. It's certainly not good for the for the bank index. But going going back to your original question, I would definitely now on PSU banks which have had a good run simply because the misses meal. It's a it's a it's a precursor of things to follow that's that's my reality. And what about capital goods names like ABB, Siemens earnings is strong. We've seen earnings upgrades in fact post Abb's numbers but the stocks are up 6070% this year valuations are at 8090 times. What would you do with them? Those one has to continue to buy into because infrastructure spending is coming in huge from the government and they all are using equipment that is from ABP or from Siemens to make it happen there. You know we've we've banned Chinese imports, so therefore Chinese cannot supply. These guys have come in and stepped in and are supplying. So they're all going to do well and it's like you have to take it at my price. It's no longer, you know, a Chinese price that is out there that is bringing the cost down along with Chinese quality. So I think it's good for that whole sector of, you know, capital goods. Hi, Mr. Advani. Good afternoon. Good to see you win. And I shall on this side, let's get rid of some spicy stocks. You know, let's talk about the new age themes. I recall that you were quite positive on Paytm. You know, you got in, you got out at higher levels as well. The stock has got clonged back. So what's the view? It's added on ₹350, all the bad news in the price. So there is too much one certainty. You rather leave that. Leave that aside. And what about Zomato? No, they were delivering a gold coins, you know, bouquets for Mothers Day. They're going across the spectrum. They have numbers today as well. Any of these two you like? Again, the Zomato is now part of our lifestyle. I think it's not going to go away. The the, the youth which are the buying power is actually, you know, full on into the Zomato Swiggy syndrome. So I think Zomato will continue to go up. Unfortunately, I have a small position. I wish I had been a little greedier, but I didn't. I just took a nibble and then it it sort of went past me. As you said, I've been in and out of Paytm. I went in at the 400 and something level. So I'm down a little bit. But the reality is that you know that's a marketplace, but that's a marketplace without a payment gateway. They're supposed to be tying up with banks, but that tie up is is happening slowly. So they're actually losing their former fast tech users. They're being shifted to those banks and I think Paytm is not going to get anything out of them. So that's not good. But you know as a platform Paytm is there, it'll probably get bought by somebody is what I guess because without the the bank part it's you know, it's got like a sort of bandage leg if you want to call it. So I think that you know it's probably an acquisition target and and the the players involved may be quite happy to see it focus. You know they they have got a lot of value out of it and you know, OK the the the main promoters invested high levels but you know he's also made money the first time around. He's only averaged up. So you know averaged up I should say, but that's what it is. Speaking of Zomato, the numbers are coming in. There's a profit that's number 1175 crores versus the loss in the same period last year and the top line has zoomed ahead about 70% higher. Stocks also now are getting to the flat line almost percent or so, still negative but trying to recover since the quick commerce, the quick delivery part of the business that is you know the bet for a lot of investors that that could be the driving the next leg of growth. And some like I think it was Goldman Sachs was saying that it could be actually worth more than the base food delivery business itself that is a plinket for Zomato. Big revenue growth 72% will try and get Mangalam in with some more analysis on what the other internals have to say. Parshupathi, what else? I mean what else is catching your eye in the midcap market of late? Anything in midcap it anything else. So going back to Zomato for a second, again China, they used to four hours delivery. I think Zomato is making that a reality because they've got the the back end to do it. And as you said, you know, it's like Walmart ended up with phone pay and phone pay ended up being quite a significant percentage of what they ended up paying, paying for, for Flipkart and likewise, you know, but Zomato, the challenge is, you know, like everything else in this market, you know, rumors tell our news the results have come in, they look like good results to me, but the stock looks like it's getting hammered. So it's not, you know, not so great profit, but at the end of it all, if you make profit, you know, maybe, maybe you know, they've got a margin and they're able to do it, so great for them. I think once the dust settles it should do better. But right now the stock is getting hammered like this, no tomorrow it's crazy, you know, another one which is selling off very hard is Silma. They, I think reported numbers on Friday and stocks down 7016%, sixteen and a half, 17% right now on huge volumes. And look at that. I mean, that's so again a player in the EMS phase, Electronics, sort of manufacturing, contract manufacturing. And it's so look at Serma and of course look at the leader, which is something like a Dixon. Dixon of course does a lot more than what Serma does now. Although in that space everyone seems to be doing everything. Dixon is at a new high and you know some of the newer entrants in the listed space have not done so well. I mean cinema of course is the high was I think almost about 700 and from there it's now under a 400. So that is the picture on cinema posts the numbers. That's a very, very sharp cut coming through. Zomato of course is also selling off. It's down 5% now nearly margins are coming at 2.4%. So you know, at the margin, the company turning profitable starting to make money, it's not a very, very new kind of story. Now stocks kind of reacted on that. And of course, now expectations are that now this is going to be a profitable story from here on. So that's one. And of course, we'll have to look at some of the detail in terms of what the expectations were and what they've actually delivered. But going down a little bit more is down about 6% now, one just under ₹190.00 or so. But would be great to speak with you. Thank you very much for your time. Appreciate it. And thank you for joining us here on CNBC. Alright, 30 points on the nifty. We've given up a little bit in the.