RBL posted a miss in earnings (~33%) with PAT at Rs2.2bn/0.6% RoA, mainly due to dip in NIM to ~5%, higher staff cost (owing to pay hikes and ~800-900 in-house collection fleet added in Q2), and LLP (led by higher slippages in CC + MFI book). Credit growth also moderated to 15% YoY due to the bank’s strategy to prune its low-yielding corporate book and slowdown in unsecured loan growth (including Cards and MFI); however, the bank remains focused on building its high yielding secured retail/SME book for better RaRo
Posts in category investments
Genus Power is spearheading the Smart Meter Play. Buy for target price of ₹505 (20% upside): Axis Securities
We initiate coverage of Genus Power Infrastructures Ltd. (GPIL) with a BUY recommendation and a target price of Rs 505/share, implying a potential upside of 20% from the CMP. GPIL is one of the largest players in the electricity metering solutions industry in India. With over 8 Cr meters installed globally; Genus has been at the forefront of electricity metering since its inception in 1992. It commands ~27% market share in India and is poised to scale to new heights. It has 1.1 Cr meters production capacity per annum and is currently expanding it to 1.5 Cr
IPO: Waaree Energies offers a concept-driven investment opportunity, and we anticipate potential traction and listing gains: Chola Securities
Waaree Energies Ltd IPO is a book built issue of Rs. 4,321.44 crores. The issue is a combination of Offer for Sale and Fresh Issue.
• The Fresh Issue consists of 2.4 crore shares aggregating to Rs. 3,600 crores at the upper end of the price band at Rs. 1,503 per share.
• The Offer for Sale consists of 0.48 crore shares aggregating to Rs. 722.41 crores at the upper end of the price band at Rs. 1,503 per share
Time Technoplast is a leader in India and among the top 3 players globally in industrial packaging . Buy for target price of ₹615 (56% upside): Systematix
TIME is a) a leader in India and among the top 3 players globally in industrial packaging and composite products, and b) a market leader and largest manufacturer of large size plastic drums globally, with an impressive 50-60% market share in India and high share in 10 countries present globally
Waaree Energies Ltd. is the largest manufacturer and exporter of solar PV modules in India. Subscribe to the IPO: SBI Securities
Waaree Energies Ltd. is the largest manufacturer and exporter of solar PV modules in India, with an aggregate installed capacity of 13.3 GW. The company operates 5 manufacturing facilities in India spread across 143+ acres of land. The solar PV modules manufactured by Waaree Energies are made using advanced technologies such as multicrystalline cell technology, monocrystalline cell technology and Tunnel Oxide Passivated Contact (TopCon), which helps to reduce energy loss and enhances overall efficiency
The fit between Sudarshan Chemical and Heubach is perfect. Buy Sudarshan Chemical for target price of ₹1161: HDFC Securities
Sudarshan Chemical Industries Limited (SCIL) has entered into a definitive agreement whereby its wholly owned subsidiary (WOS), Sudarshan Europe BV, shall acquire the global pigment business operations of the Heubach Group of Germany. Having a global scale is essential for success in the pigment business
Kaynes Technologies is scaling up the smart meter business amid growing market demand. Buy for target price of ₹6400 (27% upside): Motilal Oswal
Kaynes Technologies (KAYNES) is rapidly scaling up its smart meter business to tap the huge 250m (INR750b) smart meter market over the next few years. The company has recently inaugurated its electronics manufacturing facility in Hyderabad for the production of smart meters, and has acquired its client Iskraemeco
IREDA’s healthy growth momentum to aid valuation. Buy for target price of ₹280 (25% upside): ICICI Direct
IREDA is a systemically important non-deposit taking nonbanking financial company engaged in financing of renewable sector. The company has geographically diversified asset base with term loans outstanding across 23 states and 4 union territories
Oil India is a strong conviction BUY. Buy for target price of ₹720 (25% upside): Motilal Oswal
Amid weak crude oil prices, the share price of Oil India (OINL) has declined 22% in the last 5 weeks. However, we reiterate our BUY rating on the stock and highlight the following: 1) we estimate that the Standalone (SA) business (adjusted for investments and Numaligarh refinery stake) trades at 7x FY27E P/E, which we believe is inexpensive; 2) OINL’s strong production growth outlook (9% CAGR over FY24-FY27) hedges against the risk of lower oil/gas prices; and 3) the capacity expansion for Indradhanush gas grid and Numaligarh refinery, remains in line with the guided schedule, and will be instrumental in unlocking value in FY26 and beyond
Avalon Technologies stands out in the EMS landscape as the only player with a significant manufacturing presence in the US. Buy for TP ₹690 (26% upside): Motilal Oswal
Avalon Technologies (AVALON) stands out in the EMS landscape as the only player with a significant manufacturing presence in the US. While this has historically been a competitive advantage for the company, recent economic headwinds in the region have posed challenges. However, the company is successfully navigating these issues with a well-defined recovery plan for its US business, alongside continued growth in its domestic operations
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