Strong capitalisation will continue to drive growth ahead; Reiterate a BUY
* Capitalization came in at Rs150.3bn (above our estimate of Rs140.3bn) driven by strong commissioning of transmission lines during the quarter. Capitalisation in FY17 totaled to Rs310bn including Rs20bn capitalization of Tariff Based Competitive bidding project (TBCB)
STOCK IN FOCUS
* Looking ahead, we expect NTPC to add commercial capacity of 2.8GW and 6.0GW in FY18 and FY19, respectively which would lead to a significant jump in regulated equity from current level of Rs440bn.
* We continue to consider NTPC as one of the best placed companies in terms of fuel security, as most of its capacity offtake will
Below Poverty Line (BPL) card holders living in urban areas of Uttar Pradesh will be given free electricity connections, a Cabinet meeting presided over by Chief Minister Yogi Adityanath decided on Thursday.
Millions of poor people are likely to benefit from this decision.
The Cabinet, in its 12th meeting since the Bharatiya Janata Party government took over in March, also d
The US Government has said that it will spend USD 7.5 million to help advance India's power grid, as part of the two countries' commitments to ensuring access to affordable and reliable energy. Commenting on the issue, US Energy Secretary Rick Perry told the media, “The Ministry of Science and Technology and industry will match the commitment of US' Department of Energy, bring
* The stock has made multiple tops at 215 levels in the past few weeks and has closed at 2 weeks low.
* The key technical indicators and RSI has also reversed turning downwards and as the stock is in poised for a breakdown.
* The stock has closed near to its short term averages and we believe the stock will face lot of pressure at higher levels.
* Thus, short posit
Shares of Veer Energy & Infrastructure rallied nearly 6 per cent on the Bombay stock Exchange after the company said its board has approved the proposal to raise Rs 2.65 crore through preliminary placement of equity shares to qualified institutional buyers.
Following the development, shares of the company gained as much as 5.98 per cent to hit intra-day high of Rs 23.05 apiece on
India's premier hydropower utility and a Mini Ratna Enterprise, NHPC Limited has said that it has signed a Memorandum of Understanding (MoU) with Ministry of Power, Government of India for the year 2017-18.
“The MoU was signed by Pradeep Kumar Pujari, Secretary, Ministry of Power, Government of India and K M Singh, CMD, NHPC in the presence of senior dignitaries from MOP and
More than 300,000 new workers can be employed in wind and solar jobs and more than one million total employment opportunities can be created in achieving India's ambitious clean energy goals to install 160 GW of renewable power by 2022, a study said on Wednesday.
The labour-intensive rooftop solar segment will employ 70 per cent of the new workforce, creating seven times more jobs
State-run Energy Efficiency Services Limited (EESL) plans to invest Rs 6,000 crore as capital expenditure during the 2017-18 fiscal year.
EESL's Managing Director Saurabh Kumar told reporters here on Wednesday that they plan to fund this massive capex through Rs 1,200 crore equity and Rs 4,800 crore debt.
While the company has equity of Rs 485 crore, about Rs 520 crore w
Turning the corner
* TD Power Systems (TDPS) Q4FY17 operational performance exceeded our expectations. Revenues increased by 8% YoY. Both EBITDA and APAT was positive at Rs102mn and Rs80mn respectively. Manufacturing revenues increased by 20% YoY while project revenues declined by 8%YoY.
* Order inflows (manufacturing) in Q4FY17 d
CG Power and Industrial Solutions Ltd, formerly known as Crompton Greaves, on Wednesday said it has accepted the binding offer of Weg SA for acquisition of the company’s power business in USA at an enterprise value of USD 37 million.
In a filing to the Bombay Stock Exchange, CG Power and Industrial Solutions said, “The company has accepted a binding offer of WEG S.A for ac
Reliance Infrastructure (RInfra) promoted Reliance Defence Ammunition has entered into a strategic partnership with Yugoimport of Serbia for ammunition manufacturing in India, a company statement said here on Tuesday.
The two companies will work together in the field of ammunition, amongst others, with projected minimum requirement of Rs 20,000 crore over the next 10 years from Indian
GE Power India said that it has appointed Andrew H. DeLeone as an Additional Director of the Company with effect from 20 June 2017. “The Board of Directors of the Company in its meeting held on 20 June 2017 (today) has appointed Mr. Andrew H.
DeLeone as an Additional Director of the Company with effect from 20 June 2017,” the company said in a filing to the Bombay Stock Ex
When the tide turns...
We remain wary of the Street’s assumption of robust increase in marketing profitability for downstream PSUs noting risks from rising participation of the private players in fuel retailing business. Weaker-than-expected marketing margins could pose material downside risks to consensus estimates for HPCL>BPCL>IOCL. We
Margins to face near term pressure; Growth intact
* EBITDA and PAT below estimates: VGRD reported revenue of INR6.23b (est. INR5.64b) in 4QFY17 as against INR5.13b in 4QFY16 marking a YoY growth of 21.4% led by strong growth in products like Pumps (up 28%), stabilizers (up 18%) and fans (up 17%) on the onset of a strong summer season.
Lowered earnings to factor in nonrenewal of Vadodara II PPA
* GIPCL reported strong Q4FY17 earnings (above our estimate). Fuel cost declined due to non-operation of Vadodara II unit and other income increased due receipt of penalty and insurance claim from equipment providers. PAT increased 34.3% YoY to Rs826mn.
* PLF increased marginally acr