Should you buy shares of NTPC Green Energy Ltd. at the current market price? Have you lost the opportunity to buy stocks of Swiggy Ltd.? Is Piramal Pharma Ltd. a good choice from a long-term perspective? Should you sell shares of CMS Info Systems Ltd. at the current market price?
Lancelot D'Cunha, chief investment officer at Value X Wealth Connect and Aditya Arora of Adlytick.in, provided insights on these investor queries and more on NDTV Profit's Ask Profit show.
NTPC Green Energy (CMP: Rs 101.25)
D'Cunha: Potential To Grow
The company's margins are slightly lower compared to its peers, possibly due to its later entry into the market.
However, given the scale and volume it is targeting, the company has one of the largest growth footprints in the industry.
Being backed by NTPC, a government-owned entity, provides significant capital infusion, which will greatly enhance its ability to expand in this space.
Swiggy (CMP: Rs 305.35)
Arora: Shows Bearish Trend
The current pattern for the counter shows lower highs and lower lows.
This indicates a bearish trend, suggesting the stock has weakened.
A bullish outlook may emerge if the stock surpasses the resistance zone of Rs 350; otherwise, it is best avoided.
Piramal Pharma (CMP: Rs 211.20)
Arora: Neutral
The scrip has been in a consolidation phase, with a defined range between Rs 180 on the lower side and Rs 240 on the upper side.
Unless this range is breached, the stock is expected to continue consolidating within these levels.
The current outlook remains neutral, but a bullish trend may emerge if the stock surpasses Rs 250.
CMS Info Systems (CMP: Rs 453.25)
D'Cunha: Stay Away
The company's growth is directly tied to the physical use of cash.
As digital transactions continue to rise, cash usage is expected to decline, potentially impacting the company's long-term profitability.
Given its cost-plus business model, the overall profit margins are relatively low.
However, the company faces limited competition, effectively giving it a monopoly in its sector.
Given the high valuation, it may be best to avoid investing in it for now.
Netweb Technologies India (CMP: Rs 1,420.45)
Arora: No Significant Up Move
The stock has shown minimal activity recently, remaining confined within a set range.
Despite an overall market rally, the stock did not exhibit significant upward movement.
Both the stock’s quality and its technical indicators appear underwhelming at this stage.
Power Grid Corp. (CMP: Rs 304.05)
DCunha: Company Poised To Grow
The company operates in a near-monopoly market, serving as the primary entity responsible for building the nation's power infrastructure.
It has successfully monetised its power assets by transferring them into infrastructure investment trusts, significantly improving liquidity on its balance sheet.
This financial strategy enables the company to reinvest freed-up capital into further capital expenditures.
The government strongly supports the vision of "One Nation, One Grid," reinforcing the company’s role in the sector’s development.
The business is poised for growth, but its profit margins may remain constrained
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