All concerns that exist several weeks ago or co -exist are being addressed. Where will the markets go now? Markets are on the wall of anxiety. Will they continue to ride a ray of hope now?
Hemang Jani: Despite such a large geographical political risk and the market has remained elastic, and the fact that even before the strike, the Nifty movement was very stable and we saw many elasticity.
The wider market had its own corrective phase, but I think the fact that this incident has happened and despite the developing situation, is likely that you will look a bit cool and give it a lot of comfort to investors.
The fact that the earnings season is going on is not great, but we have to keep in mind the fact that expectations were even lower. The derivative condition is on the light side due to the risk of the event.
So, overall, I do not see the reason for the market to improve greatly. I think this is a time where you just have to wait a good opportunity whenever you see small improvements in stocks that have improved a lot and where you have a little better understanding about the business and earning is okay.
Buying those names slowly can be a good strategy. I do not think that the market is in the mood to improve the market Deep, unless you have a truly amazing move on the geographical political front.
Anything interesting on the FTA front which makes you feel good?
Hemang Jani: Some spirit companies, especially United Spirits, should be well placed. I think the existing duty structure is not convenient to import markey brands globally. Therefore, I certainly think that due to the signing of the deal, there will be a certain amount of zing that it will come in stock and I think the overall business was very stable even without a treaty.
You had about 7%, 8%, 9%type of volume growth, stable margin. Therefore, if we have any extra money because of the signature of the treaty, it will surely be a place to find it. Textile, yesterday we saw a broad-based rally, but you also pointed out some companies that are actually exporting to the UK or some other markets because it is not just a UK treaty, but you can have a treaty with us and how you can see some procedures.
Therefore, KPR Mills and some textile companies Himatsingka, Gokaldas were exceptionally high volume, so I think some of these companies will be standing for the benefit because the opportunity for textiles would be huge.
Therefore, Gokaldas, KPR Mills, ICIL, Welspun live these are some of the names that I will definitely find out about playing this treaty.
What is your own evaluation on how United Spirits or Radico should now look now?
Hemang Jani: Overall, the space has been very stable. It is one of the few pockets that have been elastic in the last six to eight months where the market itself was going through the corrective phase or we had a long grind.
Therefore, basically something like United Spirits, the United Breweries that reported the numbers on the volume and margin front, were also positive surprises, also the fact that some of the policies in the state in terms of recovery are a slightly favorable development for spirit companies.
So, I think the United Spirits, United Breweries are those that will be in a better position because you will see that extra volume can import growth and high margin products and give you a positive surprise in terms of earnings.
Titan wanted to take care of you because I believe this stock already reacts when Q4 updates come from this particular counter, but seeing the earnings season, what is your expectation from Titan and how you will see the stock moving because the stock has been a bit unstable in the past two weeks of the recent and weeks.
Hemang Jani: Despite the continuous performance from Titan for the last two or three quarters, somehow the market really has reduced the market and some small players did better, which was something for welfare and Sanco and all the time. Therefore, I think from a fully earning point of view and as the company Largepap is a marquee player, valuation looks good in view of the possibility of growth. But what is happening is that the price of gold remains very at the elevated level and will definitely be a factor that investors can deliver to the company in the context of growth.
Also, I think part of these lab-grown diamonds, there is a definite effect although people are not talking much about it, but I think jewelry with a large component of the diamond business in the overall plan of things will be a little disruption. So, I think if Titan continues to grow 16-18% with a 10-11% margin, I definitely feel that it will be a good allocation stock in the portfolio.
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