India's Power Finance, REC gain after ICICI Securities 'buy' call

REC

14/01/2025 05:57

** Shares of Power Finance Corporation  PWFC.NS  and REC
 RECM.NS  rise as much as 5.6% and 4.9%, respectively
    ** ICICI Securities resumes coverage on PWFC with "Buy"
rating, TP of 550 rupees; initiates coverage of RECM with "Buy"
rating, TP of 600 rupees
    ** Both public sector power financiers to lead the charge in
India's energy transition funding, with Central Electricity
Authority estimating about 43 trillion rupees ($496.8 bln) of
capex towards generation and transmission by 2032 - ICICI
Securities
    ** Brokerage says power financing sector has enough macro
tailwinds for the ensuing years in which PWFC and RECM each have
~20% market share
    ** Sees loan CAGR of ~14% and ~17% over FY24–27 for PWFC and
RECM, respectively
    ** In 2024, PWFC rose 17.2% while RECM gained 21.3%



($1 = 86.5625 Indian rupees)

 (Reporting by Ashish Chandra in Bengaluru)
 ((ashish.chandra@thomsonreuters.com (+91 7982114624))