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Summary

The video covers key updates on various stock performances and market trends. Saajhar posted strong June 2025 numbers for both four-wheelers and three-wheelers, but concerns over sustainability due to the recent sales tax increase are raised. Gandara, particularly in the truck sector, showed robust growth, with optimistic projections for future profitability. The market remains positive, with focus shifting to stock-specific strategies, especially in sectors like banks and fertilizers. The video encourages investors to prioritize stocks with strong dividends and attractive valuations, suggesting that cement stocks may see a rally moving forward.

Takeaways

• 😀 Saajhar posted strong production and sales numbers for June 2025, with 985 units produced for four-wheelers and 1349 units sold. The three-wheelers saw 1420 units produced and 2435 units sold.
• 😀 A surge in Saajhar's stock price followed the announcement of these numbers, reaching a high of ₹1248 before slightly dipping.
• 😀 The potential influence of an upcoming increase in sales tax to 18% on hybrid vehicles may have driven early purchases, creating uncertainty about the sustainability of these numbers.
• 😀 Despite the uncertainty, strong demand for Saajhar vehicles is expected to persist due to long delivery times (3-6 months).
• 😀 Gandara's strong performance is attributed to significant growth in both its passenger car and truck sales, with trucks and buses increasing by 60-80% in the past 11 months.
• 😀 The earnings of Gandara Autos are expected to continue growing, with a projection of ₹80 to ₹90 in earnings per share over the next 12 months, making it an attractive investment at its current multiples.
• 😀 Based on Gandara's balance sheet and advances from customers, their strong performance is expected to sustain for the next 5-6 quarters, offering potentially 100% growth in earnings.
• 😀 For the upcoming week, key market events include UBL's board meeting on Friday, the release of auto sales data on the 11th, and inflation numbers, with a focus on corporate earnings and dividends.
• 😀 Market sentiment appears positive, with expectations for a range-bound to slightly positive market, with sectors like banks showing strong potential but also some risk of profit-taking.
• 😀 Investors are advised to focus on stock-specific opportunities, particularly those offering strong dividend yields and undervalued stock options in sectors like cement, which have lagged behind.

Q & A

What were the production and sales numbers for Saajhar in June 2025?

In June 2025, Saajhar produced 985 units of its Haval four-wheelers and sold 1,349 units. Additionally, the company produced 1,420 three-wheelers and sold 2,435 units.

What caused the rally in Saajhar's stock price in June 2025?

The rally in Saajhar's stock price was driven by strong production and sales numbers, with the stock price reaching ₹1248. Additionally, rumors about an upcoming increase in sales tax on hybrid vehicles likely prompted some customers to make purchases in advance.

Why is there uncertainty about whether Saajhar's strong numbers will sustain?

The uncertainty stems from the potential impact of the increased sales tax (from 12.5% to 18%) on hybrid vehicles, which could have driven a short-term surge in sales. Additionally, there was a new 1% levy imposed on hybrid cars, adding to the cost.

How long is the expected demand for Saajhar's vehicles likely to remain strong?

The demand for Saajhar's vehicles is expected to remain strong in the next few months, with delivery times currently ranging from 3 to 6 months.

What was the performance of Gandara Autos and Gandara Industries in the last trading session?

Both Gandara Autos and Gandara Industries performed very well, with Gandara Autos hitting its upper price limit in the last trading session.

How did the truck and passenger car sectors perform for Gandara in recent months?

Passenger car sales for Gandara increased by 40% in the last 11 months, while truck and bus sales grew by 60-80%, demonstrating strong demand, especially in the truck segment.

What is the expected profitability of Gandara in the upcoming quarter?

Gandara is expected to show record profitability in the upcoming quarter, with earnings for the next 12 months projected to be in the range of ₹80 to ₹90.

How does Gandara's stock valuation compare to the broader market?

Gandara’s stock is currently trading at a multiple of about five times, while the broader market is trading at a multiple of around 6.5 times, with some stocks even reaching multiples of 7, 8, or 9.

What factors are expected to sustain Gandara's strong earnings over the next few quarters?

Gandara's strong earnings are expected to be sustained by customer advances, which make up a significant portion of its bookings. The company's balance sheet indicates that the results from March could be repeated over the next five to six quarters.

What is the recommended investment strategy for the upcoming week in the stock market?

The market is expected to remain positive, with a focus on stock-specific investments. Investors should look for undervalued stocks with attractive dividend yields and solid fundamentals. Additionally, sectors like cement, which have underperformed recently, might offer opportunities for growth.

What are the key events expected in the stock market for the upcoming week?

Key events include the release of UBL's quarterly results, which will be a focus for investors, especially in the banking sector. Additionally, there will be a board meeting for UBL, and auto sales data will be released on the 11th of the month. Forex reserves data and inflation numbers will also be announced.

How are the banking and fertilizer sectors expected to perform in the upcoming week?

The banking sector, having rallied recently, might see some profit-taking in the upcoming week. However, the fertilizer sector may continue to show strength. The key will be to focus on individual stocks within these sectors that offer good value.