20 March 2019
Market snapshot
Equities - India
Sensex
Nifty-50
Nifty-M 100
Equities-Global
S&P 500
Nasdaq
FTSE 100
DAX
Hang Seng
Nikkei 225
Commodities
Brent (US$/Bbl)
Gold ($/OZ)
Cu (US$/MT)
Almn (US$/MT)
Currency
USD/INR
USD/EUR
USD/JPY
YIELD (%)
10 Yrs G-Sec
10 Yrs AAA Corp
Flows (USD b)
FIIs
DIIs
Volumes (INRb)
Cash
F&O
Note: *Average
Close
38,363
11,532
17,937
Close
2,833
7,724
7,324
11,788
11,687
21,567
Close
67
1,307
6,469
1,922
Close
69.0
1.1
111.4
Close
7.4
8.5
19-Mar
0.31
-0.18
19-Mar
434
10,709
Chg .%
0.7
0.6
0.7
Chg .%
0.0
0.1
0.3
1.1
0.1
-0.1
Chg .%
0.6
0.2
0.2
1.2
Chg .%
0.6
0.1
0.0
1MChg
0.06
0.06
MTD
3.61
-1.84
MTD*
407
10,434
CYTD.%
6.4
6.2
0.3
CYTD.%
13.0
16.4
8.9
11.6
15.4
7.8
CYTD.%
26.6
1.9
8.7
3.2
CYTD.%
-1.2
-1.0
1.5
CYTDchg
0.0
0.0
CYTD
5.38
-1.44
CYTD*
346
9,633
Today’s top research idea
Torrent Power: On growth track, again!
Initiating coverage with a Buy rating
Torrent Power (TPL) is engaged in generation and distribution of electricity. It has
amongst the best balance sheets and RoICs in the private power sector, even as
~30% of the gross block remains unutilized and capex is on an uptrend.
Given its presence across the value chain from generation to distribution, we
believe the company is well poised to capitalize on opportunities stemming from
distribution privatization, thrust on RE, and consolidation in the conventional
generation sector.
We expect EBITDA/PAT CAGR of ~12% to INR40.8b/INR13.3b over FY19-21. We
value the stock on an SOTP basis at INR315/share. The SOTP method does not
capture any value for the shut gas capacity of 1.8GW.
Initiate with Buy.
Research covered
Cos/Sector
Torrent Power
(Initiating coverage)
Axis Bank
Larsen & Toubro
MindTree
Jindal Steel & Power
Alembic Pharma
Key Highlights
On growth track, again!
Focused execution to drive RoE improvement
MindTree acquisition plan puts buyback option to rest
In the face of hostility; Downgrade to Neutral
Angul progressing well on production
Growth plans for the US market on track
Piping hot news
With a formal offer to SBI, Etihad seeks to fly out of Jet
Jet Airways’ financial problems took a turn for the worse on Tuesday with partner
Etihad formally asking State Bank of India to purchase its stake in the airline and
the pilots’ union threatening to strike work from April 1 if salary arrears are not
cleared.
Chart of the Day: Torrent Power – On growth track, again!
Diversified portfolio
Balance sheet best amongst private sector
Source: MOFSL, Company
Source: MOFSL, Company
Research Team (Gautam.Duggad@MotilalOswal.com)
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.