Indian power financing stocks up; Bernstein initiates with "outperform"

REC

03/07/2024 06:14

** Shares of power financing firms REC  RECM.NS  and Power
Finance Corp  PWFC.NS  up 3.4% and 4.7%, respectively
    ** PWFC set for fourth straight session of gain
    ** Bernstein analysts say investors "underestimating" the
duration and intensity of power demand cycle, expects demand to
track pace of India GDP growth in medium term
    ** Power financing cos have less risk regarding
non-performing assets as most of their lending is to government
entities, brokerage says
    ** Bernstein initiates coverage on both with "outperform",
PT of 620 rupees for PWFC and 653 rupees for RECM, both
Street-highs as per LSEG
    ** Analysts rate RECM at "buy" and PWFC at "strong buy" on
avg - LSEG
    ** PWFC up 37.3% YTD; RECM up 35% YTD
    

 (Reporting by Kashish Tandon in Bengaluru)
 ((kashish.tandon@thomsonreuters.com))