EUR 120.00 For Business Accounts Only

MOSL: Morning India (28/June/21): 1. JSW Energy (Profits benefit from back-down charges; Downgrade to Sell); 2. ONGC; 3. Indraprastha Gas; 4. Ashok Leyland; 5. Repco Home Finance; 6. Federal Bank; 7. Financials

Morning India (28/June/21): Morning India (28/June/21): 
Today’s top research ideaJSW Energy: Profits benefit from back-down charges; Downgrade to Sell- JSW Energy highlighted its plans to build a presence in the Renewables space and targets reaching 10GW of overall capacity by FY25 (v/s 4.5GW currently).- With 1) a healthy balance sheet position (net debt to equity: 0.5x) and 2) JSWE's current capacity generating strong cash flows (~87% of JSWE's 4.5GW is under long term PPAs), the company does have room to grow.- However, risks to the execution timeline persist given the lack of PPAs for some of these projects.- Moreover, even as we build in the successful commissioning of 2.2GW of renewable projects over the next 2-3 years, the current price factors this in well.- We have a sell rating on the stock with a SOTP based target price of INR130/sh.- However, with the sharp run-up in the stock over the past three months, the possible value-accretion is captured more than adequately. Accordingly, we downgrade the stock to Sell.
Piping hot newsIndian economy poised for recovery in FY22: SBI Chairman Dinesh Kumar KharaAlthough the second wave of the Covid-19 pandemic again brought businesses and economic activities to a standstill, Chairman of the State Bank of India (SBI), Dinesh Kumar Khara has expressed hope that the country's economy would recover in the ongoing financial year. He said that policy measures and the coordinated efforts of the Reserve Bank of India (RBI) and the Centre were directed towards enabling growth on a more durable basis during these difficult times.