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Asian Markets are trading mixed, fueled by a tech rally on Wall Street. Nikkei and Shanghai are trading positively by 0.99% and 0.20%, whereas Hang Seng is trading negatively by 0.11%.
We are initiating coverage on Prince Pipes & Fittings Ltd (PRINCEPIPE) with a BUY recommendation and a target price of Rs 400/share, which implies an upside of 18% from the CMP.
De-risking legacy book and building healthy portfolio: South Indian Bank's pre2020 defaults in corporate exposures and Covid related delays spiked NPAs to 5.9% in FY22, forcing large provisions that hammered profitability. The bank has since derisked sharplylegacy stressed book down from 65,349 crore (63% of advances in FY22) to 16,973 crore (19% in FY25) via recoveries/exitsdriving GNPA to 3.2%, NNPA to 0.9%, and PCR to 85%, with ~98% of corporate book now being AAA/A+ rated. Newly originated granular retail/MSME and selective corporate lending shines pristine (GNPA 0.46%), backed by tighter underwriting, digital platforms, and robust collections, with fresh slippages easing to 1.5% for sustained turnaround. Recalibrating the mix remain core strategy: Management is driving a structural...
Diversified revenue streams alongwith pan India presence: The company derives 60% of its revenue from broking & related services, 23% from nonbroking (14% from interest on MTF book and 9% from distribution) while the balance other income from operations. Alongwith multi-channel distribution network as described above, the company has pan India client base with Tier 1...