India's Power Finance, REC rise after Emkay starts with 'buy'

REC

03/01/2025 07:15

** Shares of Power Finance Corporation  PWFC.NS  and REC 
 RECM.NS  rise as much as 3% and 3.6%, respectively 
    ** Emkay Research initiates coverage on both these public
sector power financiers with "Buy" rating
    ** Sets TP of 600 rupees for PWFC, premium of 30.6% over
last close; TP of 650 rupees for RECM, premium of 25.4%
    ** Sees PWFC and RECM well placed to capture debt-funding
opportunities as national electricity plan envisages 33 trln
rupees ($384.8 bln) capex in the power sector ecosystem over
FY23-32 
    ** PWFC and RECM have significantly benefited from
resolution of legacy NPAs, which combined with improving cash
flows from thermal power plants, positions both cos for enhanced
profitability - Emkay
    ** Sees ~13%/~18% AUM CAGR for PWFC/RECM over 
FY24-27, along with ~19%/~20% ROE during FY25-27
    
    
    ($1 = 85.7525 Indian rupees)

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