Nifty 50 ended the previous session 2,823.55 points below its record high. Wall Street paused its losing streak with the Nasdaq up by 0.6% and S&P 500 gaining 0.4%. Asian equities also saw gains in early trade. The ₹10,000 crore NTPC Green Energy IPO opens today, and with the earnings season nearly over, focus shifts to FIIs, DIIs, and global cues. The market will be closed for trading on March 20 due to elections in Maharashtra. Stocks like GVK Power, Shilpa Medicare, Britannia, and GMR Airports are in focus.
Indus Towers shares poised for a 50% upside based on these positive triggers: Citi
Indus Towers Ltd. shares gained up to 3% on November 19, 2024, with Citi maintaining a ‘Buy’ rating and a price target of ₹485 per share, suggesting over 50% upside from the previous day’s closing. The stock has dropped 28% since the announcement of its share buyback on July 30, but Citi highlights several positive factors, including:
1) Expected increase in tenancies from Vodafone Idea starting Q3 FY25E.
2) Faster recovery of overdue payments from Vodafone Idea.
3) Lower capital expenditure supporting free cash flow.
4) Improved visibility for dividend reinstatement by Q4 FY25E.
Indus Towers had approved a ₹2,640 crore buyback for up to 5.67 crore shares, its first in eight years. The stock has risen 63% in 2024 and gained 72% over the past year, trading at ₹330.50 on Tuesday.
Ramkrishna Forgings can continue to outperform peers, says UBS, citing four key factors
Ramkrishna Forgings shares have risen 33% in 2024, outperforming the Nifty 50’s 8% gain. UBS has issued a ‘Buy’ rating with a target price of ₹1,500, predicting a 60% potential upside. UBS expects continued growth driven by four key factors:
1) Increased penetration of EVs and aluminium forging.
2) Rising contributions from recent acquisitions.
3) Client additions in the earth moving, farm equipment, and oil & gas sectors.
4) Opportunities in the rail segment.
UBS forecasts a 22% revenue CAGR for Ramkrishna Forgings from FY25-27, higher than the consensus estimate of 17%. The stock recently reported strong Q2 FY24 results, with a 17.2% revenue increase and a 131% rise in net profit, boosted by a one-time gain. The stock was trading at ₹962 on November 19, 2024.
NTPC Green Energy raises ₹3,960 crore from anchor investors ahead of IPO opening
NTPC Green Energy Ltd., promoted by NTPC Ltd., has raised ₹3,960 crore from anchor investors ahead of its IPO, which opens on November 19, 2024. The company allocated 36.66 crore equity shares at ₹108 each to investors like Capital World, Goldman Sachs, GIC, Morgan Stanley, and others.
The IPO will offer approximately 92.6 crore fresh shares, with no Offer For Sale (OFS) component, priced between ₹102-108 per share. A discount of ₹5 per share is available to eligible employees, and ₹200 crore worth of shares are reserved for the employee quota. Existing NTPC shareholders can bid for ₹1,000 crore worth of shares under a reservation.
Proceeds will primarily fund investments in NTPC Renewable Energy Ltd. (NREL) and repay some of NREL’s outstanding borrowings. The IPO is the third largest of 2024, and analysts have given it a ‘Subscribe’ rating due to NTPC Green Energy’s strong backing and experience in executing large-scale renewable projects.
NTPC Green Energy, with a total portfolio of 16,896 MW, is the largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity.
