Is it the right time to enter NTPC Green Energy for investors who missed the initial public offer? The stocks are trading 9–12% higher than issue price. What of Tata Elxsi Ltd. which is in a consolidation territory? Is it a good stock to enter for the long term? Zomato Ltd. may be a good option for accumulating on every dip, given its long term projection.
Vaishali Parekh, vice president of technical research analysts, Prabhudas Lilladher Pvt. and Sameer Dalal, owner of Natverlal & Sons Stockbrokers Pvt. give their insights.
NTPC Green Energy
Sameer Dalal: NTPC Green Energy is a great long–term story given the focus on renewable energy growth and the company being the largest player in the space. Analysts already said that they have a target of 16 gigawatts by 2032. Now, all of these will take time to set up. Cost overrun could happen which may affect profitability.
"I'm not saying that it's a bad investment. Is it a good time to buy at 10% rise? You can wait."
Because of the large capital expenditure NTPC Green Energy has lined up at some point in the near future, the company may need to come up with new fundraise to ensure that their balance sheet remains healthy. So, there will be enough opportunity to buy. Hence, no need to rush.
Container Corp. Of India
Vaishali Parekh: Currently, Container Corp. of India is well placed. It has seen a good corrective move. Technically, Rs 760–770 is a very good support level. Now, a bounce is coming. There's a lot of upside from here on.
"I will suggest, for Concord, start accumulating with Rs 760 as support."
GAIL (India): Good Among Other Gas Stocks?
Sameer Dalal: Natverlal & Sons Stockbrokers Pvt. is positive on GAIL (India) Ltd. At the end of the day, the gas supply within the country will keep on increasing. CNG is also not coming as favourable at this point in time with electric vehicle in focus.
"We believe that business is still going to grow because it's more comparative than ICE engine. From that perspective GAIL looks good."
Volume growth is likely in over the next two years. Their operation will keep getting better as more gas flows through their pipelines, which will increase their profitability.
"One could invest in GAIL. But is it the top take in the market at this point? No. If you want to buy a gas stock, GAIL is good pick."
Tata Elxsi
Sameer Dalal: Natverlal & Sons Stockbrokers is positive on Tata Elxsi Ltd. from a long–term perspective. The business they are doing in auto and artificial intelligence will bear fruits over a period of time.
"I think, the stock has run up far more than fundamentals and made a high of over Rs 9,000. From there, we've seen a stark correction."
Now, Tata Elxsi is consolidating. Their earnings need to start catching up. Market participants have seen a bit of a flatline in the earnings in last two quarters. Once, the earning starts growing, the stock price can move up. However, the consolidation could continue for a little bit longer maybe for three to six months.
"I would suggest, on dip she could add a bit like I said that we're positive. We believe the stock price could trade at around Rs 8,000–8,200 apiece in a year's time."
Zomato
Vaishali Parekh: Fresh entry at the current market level is not suggestable. Market participants did get a chance when indices were declining. They should wait for a dip or start accumulating. Long–term, what Prabhudas Lilladher is looking at from here on is Rs 322–340. Rs 260 acts a very good support.
"My view is start accumulating because exact bottom fishing won't be possible."
Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
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