Sell

Weak power demand impacted Torrent Power as it reported subdued Q1FY26 result. Gas based capacity forms 56% of the total installed capacity.

Torrent Power reported subdued Q3FY25 result. Revenue was up 2% YoY to INR 65bn, EBITDA grew 6.5% YoY to INR 11bn and PAT grew 40% YoY.

We downgrade (on recent sharp run-up in the stock price) Techno Electric (TEEC) to REDUCE with revised upwards TP of Rs1,600/sh (+2% upside).

JSW Energy (JSWEL) reported consolidated revenue / EBITDA / PAT of Rs23.9bn / Rs8.9bn / Rs4.7bn (+14.4% / -4.3% / +37.3% YoY) respectively, for Q2FY23.

JSW Energy (JSWEL) has agreed to acquire the 1,753MW RE portfolio of Hyderabad-
based Mytrah Energy for net EV of Rs105.3bn, or 6.4x normalised EBITDA of Rs16.5bn
at P90 levels (FY22 EBITDA was Rs12.4bn).

Torrent Power’s (TPW) Q1FY23 numbers were bolstered by good performance in the distribution business, particularly franchised distribution (DF), and renewables.

JSW Energy’s (JSWEL) Q4FY22 reported consolidated revenues / EBITDA / PAT were Rs24.4bn / 11.3bn / 8.6bn (+55% / +79% / +711% YoY) respectively. However, there was a one-time gain of Rs5.2bn / Rs4.9bn at EBITDA / PAT levels respectively due to the tariff true-up order for Karcham Wangtoo HEP for the period FY15-FY22

TPWR's ~70% run-up in two months stems from power demand growth, international coal price rally and possible renewables business IPO

JSW Energy’s (JSWEL) Board has approved the reorganisation of the company’s green and grey businesses. Its RE business (operational: 1,391MW hydro & 10MW solar; under construction: 240MW hydro & 2,218MW of solar + wind) will be housed under a new wholly-owned subsidiary – JSW Neo Energy. The thermal business (3,158MW) will continue to be part of JSWEL.

Dismal Show on Rising Global Spot Coal Prices & Lower PLF JSW Energy (JSWEL) continued to report a dismal performance in 1QFY19 with its PBT declining by 27% YoY to Rs2.4bn in line with our estimates. Reported PAT grew by 5.7% YoY to Rs2.2bn owing to lower effective tax rate of 9.8% (vs. 33.5% in 1QFY18) on deferred tax benefits. We maintain our REDUCE recommendation on the stock with a revised Target Price of Rs62. Higher Realisation Drives Revenue Growth; Consolidated PLF Declines JSWEL's revenue rose by 4% YoY to Rs24.4bn owing to 11% YoY rise in overall realisation to Rs3.9/ unit despite 4.7% YoY fall in generation. It generated 6,086mn units in 1QFY19 (vs. 6,400mn units...

Adani Power (APL) has delivered a weak performance in 4QFY18 on the back of lower off-take and low-rate PPAs. Led by higher fuel cost, lower generation along with high interest and depreciation cost, it incurred Rs10.7bn consolidated net loss vs. Rs9.3 bn in 4QFY17. Adjusted for Rs6.0bn compensatory tariff, APL's consolidated (reported) revenue and operating profit...

JSW Energy (JSWE) is part of the JSW Group of companies headed by Sajjan Jindal. JSWE operates 4,531 MW (Thermal 3140 MW & Hydel - 1,391 MW) of power generation capacity with the vision to achieve 10,000 MW in power generation by 2020. Company is looking to add more capacity through in-organic growth initiatives. In addition, the company also has operational transmission assets (165kms) in Maharashtra, owns a majority stake (93.3%) in a coal mining company in South Africa and a power-trading arm. In a JV with Toshiba, JSWE has established a power equipment manufacturing unit...

EBITDA margin contracted by 614bps to 27.9% in 4QFY18 vs. 34.1% in 4QFY17 due to increase in global coal prices. Adjusting for JPVL's liability, its net debt reduced by Rs31.06bn in FY18. Cost of debt dipped by 114bps YoY in 4QFY18, which brought down borrowing cost to Rs3.2bn from...

Tata Power's 4QFY18 consol. adj. PAT declined 8% QoQ/30% YoY to INR2.7b (below our estimate of INR4.5b) due to higher losses at Mundra, lower coal production, and losses at some of the overseas JV companies. PAT is adjusted for (a) impairment reversal of INR18.8b, (b) impairment at Georgia Hydro of INR5.2b and (c) INR2.3b of other one-off items. Net debt (incl. perpetual securities) was unchanged YoY at INR501b. Consol. PAT increased ~3% YoY to INR14.4b for FY18.

PTC India Financial Services (PFS) has been a financier to small and medium power projects. Consistent focus on small and medium power projects, especially renewable segment has led to healthy growth in advances at 45% CAGR in FY12-16. Asset quality had been resilient with near zero NNPA and marginal GNPA till Q3FY15. However, a slowdown in the power sector and slippage from restructured accounts led to a rise in NPA. Given the current business environment plagued by a slowdown in investment activity and increasing competition from banking peers,...

Dispose its Strategic Engineering Division (SED), part of its standalone operations. It generated EBITDA of ~INR600m in FY17. Sell its investment in Tata Ceramics, ~57% subsidiary. It had a carrying value of INR91m, revenue of ~INR464m and PAT loss of INR5.9m in FY17. Sell investment in Tata Projects, ~48% associate. It has a carrying value of ~INR4.9b, revenue of ~INR60b and PAT of ~INR1.3b in FY17. Sell stake in Panatone Finvest, ~39% associate that owns ~88m shares in Tata Communication (TCOM). At TCOM's CMP, the attributable value is ~INR23b