Latest news with #InCredEquities
Economic Times
4 days ago
- Business
- Economic Times
Adani Power shares may rally 18%, positioned as a pure play in India's thermal power space: InCred Equities
InCred Equities has initiated coverage on Adani Power with an 'add' rating and a target price of Rs 649, citing a potential 17.8% upside. The brokerage highlights APL's strong thermal power presence, stable PPAs, brownfield expansion plans, and deleveraging efforts. With capacity set to rise to 30.67 GW by FY30F, APL is well-positioned for growth. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Calling it a pure play on the Indian thermal space, domestic brokerage firm InCred Equities has initiated coverage on Adani Power Ltd (APL) with an 'add' rating and set a target price of Rs 649 per share, implying an upside potential of 17.8% from its previous closing brokerage's outlook is based on the company's strong presence in the thermal power segment, brownfield expansion strategy, and deleveraging to InCred, Adani Power is a pure play in India's thermal power space with 87% of its capacity tied to long-term power purchase agreements (PPAs) that include a fuel cost pass-through company generated Rs 200 billion of recurring EBITDA in FY25, supported by this stable revenue mix. The remaining 17% of capacity is dedicated to merchant power, leveraging Indian Energy Exchange (IEX) prices with a realised average of Rs 5–6/kWh and a peak of Rs 10/ Power currently operates 17.55 GW of capacity and has outlined an expansion strategy to scale its installed capacity to 30.67 GW by FY30F. This includes a planned addition of 13.12 GW through brownfield projects such as Mahan Phase II (1.66 GW), Raipur Phase II (1.66 GW), Korba Revival (1.32 GW), and noted that this growth strategy aligns with India's projected 5–6% annual power demand growth, with peak demand expected to reach 458 GW by domestic brokerage firm also highlighted that the company achieved a 71% plant load factor (PLF) in FY25 and generated Rs 564 billion in revenue for the same period. APL's inorganic growth strategy and expansion projects are expected to improve the industry PLF to 69% by the financial side, Adani Power is expected to report an 11% EBITDA CAGR over FY25–28F, primarily driven by increased PLF and higher power generation from the merchant segment. The company plans to spend Rs 1,200 billion in capital expenditure for FY25, funded via internal accruals, and aims to reduce its net-debt-to-EBITDA ratio to 0.9x by FY30F from 1.5x in brokerage notes potential downside risks related to execution delays in the 13.12 GW pipeline, lower-than-expected merchant realisation, and the timing of discom payment resolution.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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Business Standard
21-05-2025
- Business
- Business Standard
IndusInd Bank shares fall 1.5% ahead of Q4; lender likely to post loss
Shares of IndusInd Bank traded over 1 per cent lower on Wednesday ahead of its quarterly results, with the lender expected to report a loss of over ₹200 crore. IndusInd Bank's stock fell as much as 1.5 per cent during the day to ₹770 per share. The stock trimmed some losses to trade 1.01 per cent lower at ₹774 apiece, compared to a 0.51 per cent advance in Nifty50 as of 9:57 AM. Shares of the company have fallen over 10 per cent from their recent peak of ₹863, which it hit earlier this month. In March, the stock plunged over 30 per cent after noting the discrepancies in its derivatives portfolio. The stock has fallen 19 per cent this year, compared to a 4.9 per cent advance in the benchmark Nifty50. IndusInd Bank Q4 preview The lender is expected to report a net loss of over ₹200 crore in Q4FY25, according to a consensus estimate of 12 analysts polled by Bloomberg. Additionally, its net interest margin (NIM) is expected to contract sharply due to the various accounting lapses the bank has reported so far, including in the microfinance business. The bank's NIM – a measure of profitability of banks – stood at 3.93 per cent at the end of December 31, 2024. So far in the first nine months of the financial year under review (9MFY25), the bank's net profit stood at ₹4,904 crore, down 26 per cent Y-o-Y from ₹6,628 crore in 9MFY24. In Q3FY25, the bank had reported a net profit of ₹1,402 crore, down 39 per cent year-on-year (Y-o-Y) due to sharp rise in provisions, owing to slippages in the microfinance portfolio. In Q4FY24, the bank's net profit stood at ₹2,349 crore. IndusInd Bank Derivatives discrepancies On March 10, the bank had disclosed to the exchanges that in an internal review, it had found discrepancies in its derivatives portfolio, which would have an adverse impact of 2.35 per cent on its net worth as of December 2024, or roughly ₹1,530 crore. The external agency — PwC — appointed to validate the findings of its internal review identified discrepancies, estimated a negative impact of ₹1,979 crore as of June 30, 2024. Based on the external agency's report, the bank said that the discrepancies would have an adverse post-tax impact of 2.27 per cent on its net worth as of December 2024. InCred Equities on IndusInd Bank Q4 The impact of derivatives exposure will be partly taken through the interest income line and the rest through trading gains, analysts at InCred Equities said. The recent unearthing of the incorrectly recorded interest income in the MFI business increases the negative impact on net worth to 3.1 per cent post-tax, from 2.35 per cent earlier. "The margin impact due to the MFI business accounting lapse works out to around 17 basis points (bps) and the RoA (return on assets) impact to nearly 10 bps. Based on these accounting lapses, we believe core margin could be structurally lower by 25-30 bps,' said InCredi Equities in a note.
Times of Oman
14-03-2025
- Business
- Times of Oman
Fund inflows through MFs to remain volatile in the near term: Report
New Delhi Inflow of funds through mutual funds (MFs) are expected to remain volatile in the near term, financial advisory firm InCred equities said in a note. The inflows will only get healthy in the medium term led by higher participation from the retail segment, higher understanding of market volatility and rising investment discipline along with incrementally higher inflow from beyond Top 30 cities. "The recent correction in select AMC stocks have placed them in attractive buckets," InCred Equities said. The Asset Under Management in mutual funds in February 2025 declined by 1 per cent month-on-month to Rs 68 trillion, amid softer equity fund inflow, among others. The capital market volatility typically hurt inflow, as seen in subdued gross equity fund inflow and new SIP registrations -- although gross SIP inflow was healthy at Rs260 billion. "We expect the volatility to stay in the near term, mainly led by global events. However, we remain optimistic in the long run amid rising market penetration," said InCred Equities' note. There has been some dampness in the sentiment as gross inflow in equity schemes declined to an 11-month low in February 2025, although the gross outflow remained low, indicating that investors continue to remain patient even amidst the noise. Volatility has been high in recent months, especially in the erstwhile leapfrogging small-cap and mid-cap indices witnessing a sharp decline of 14-18 per cent so far in 2025. However, according to InCred Equities, another indicator of rising financial discipline is a small decline of 1.5 per cent month-on-month in systematic investment plan or SIP inflow which managed to remain high at Rs 260 billion.
