JSW ENERGY: JSW Energy plans Rs 15,000 crore investment for growth, eyes acquisitions: CEO Sharad Mahendra
The JSW Energy proudly announced highest ever EBITA in FY24 and 24% rise in the Net profit and 3% rise in the Revenue in Q4FY2024. The Company already rose Rs.5000 cr via QIP plan last month and Now the Board approved for Rs.10000 cr for invest in Wind Turbine and Battery Manufacturing areas.
JSW ENERGY is moving in Ascending channel and market has fallen from the higher high area of the channel
JSW Energy disclosed a significant 24% year-on-year surge in its net profit during the fourth quarter of the fiscal year 2023-24, accompanied by a 3% increase in revenue. The company, in its announcement of results on May 8th, underscored its robust operational performance. Notably, JSW Energy achieved its highest ever EBIDTA in FY24. Additionally, the company successfully raised Rs 5,000 crore through a qualified institutional placement of shares and has obtained board approval to further augment its capital by Rs 10,000 crore.
Sharad Mahendra, the Joint Managing Director and Chief Executive Officer, elaborated on JSW Energy’s strategic agenda in an interview with Moneycontrol. He discussed the company’s planned capital expenditure for the fiscal year 2024-25, its acquisition strategy, and its intentions to venture into wind turbine and battery manufacturing sectors.
The RBI sent Advisory Letter to NBFC Gold Loan Companies like Manapurram, Muthoot Finance. The Letter said Cash Disbursal limit for Gold loan is Rs.20000 only and remaining amount have to settle in Online transactions. Manapurram now doing 40% in Cash Disbursal and 60% in Online, Muthoot doing 60% in Online transactions. This Limit of Cash disbursal come from Fraud Gold loan case happened in IIFL and found by RBI. So This is Negative impact for Gold Loan disbursal companies like NBFCs.
MANAPPURAM FINANCE Market price is moving in Ascending channel and market has fallen from the higher high area of the channel
On May 9, the shares of Manappuram Finance and Muthoot Finance witnessed a sharp decline of up to 8%, a day following reports that the Reserve Bank of India (RBI) had sent them an advisory letter concerning the limitation of cash disbursal for loans.
As per the reported advisory, the RBI directed both Non-Banking Financial Companies (NBFCs) to strictly adhere to the provisions of the Income Tax Act (IT) regarding cash disbursement, stipulating that no NBFC should dispense loan amounts exceeding Rs 20,000 in cash.
This advisory was issued by the RBI’s Department of Supervision specifically to gold loan financiers like Muthoot Finance and Manappuram Finance. It was prompted by inquiries from certain large gold loan-providing NBFCs seeking clarification on cash disbursal regulations.
Perceived as a cautionary measure, the advisory underscores the RBI’s intent to ensure compliance with established norms among gold-loan NBFCs. It follows an earlier incident in March when the RBI prohibited IIFL Finance from disbursing gold loans due to violations of cash disbursal regulations and other concerns.
Analysts express concerns over the impact of this development, particularly for NBFCs focusing on small-ticket loans in rural areas, such as Microfinance Institutions (MFIs) and gold loan providers. These entities typically have a higher proportion of cash disbursals, potentially leading to operational disruptions and affecting Assets Under Management (AUM) growth in the short term.
However, for NBFCs that have already invested in digital disbursal technologies and processes, the impact is expected to be less significant. Gold loan NBFCs, notably Muthoot Finance, may experience some disruptions but are likely to benefit from higher gold prices and market share gains following the IIFL gold loan ban.
Despite the near-term challenges, analysts believe that the inherent convenience of gold loans and the competitive advantage of NBFCs over banks in this segment will prevail. Hence, while acknowledging potential operational disruptions, analysts reiterate a positive outlook on Muthoot Finance’s stock, citing its resilience and potential for mitigating the impact of regulatory changes.
Meanwhile, Manappuram Finance shares were also impacted by the news, albeit to a lesser extent, owing to its relatively lower exposure to gold loans compared to Muthoot Finance.
Investment experts caution against exposure to gold loan companies due to regulatory risks and recommend exploring alternative investment instruments like Sovereign Gold Bonds (SGBs) and gold exchange-traded funds (ETFs) as safer avenues for gold investment. These alternatives offer easy access to gold investment without the regulatory complexities associated with gold loan NBFCs, thereby mitigating potential risks for investors.
The TATA Power reported 11.34% Net profit rise in Q4 FY2024 and reported Rs.1045.56 cr as Net profit. But 58.5% Net decline in the Profit After tax in the Therman Coal Power Generation.
TATA POWER Market price is moving in Ascending channel and market has fallen from the higher high area of the channel
In India Power requirement is needed up to 2-3 Years, So Tata Power can rebuild the Power generation in the current Mudra Power Projects and upcoming projects.
On May 9, Tata Power shares witnessed a decline of over three percent in early trading, reacting to the company’s fourth-quarter results. Tata Power reported a consolidated net profit of Rs 1,045.59 crore for the fourth quarter, reflecting an 11.37 percent increase compared to the same period last year. This growth was primarily attributed to the robust performance of its core thermal coal generation business.
However, despite the overall growth, the thermal generation (including coal) segment experienced a significant 58 percent year-on-year decline in Profit After Tax (PAT). Kotak Institutional Equities noted that this decline was primarily due to losses amounting to Rs 43 crore in this segment.
Kotak Institutional Equities highlighted that Tata Power’s earnings outlook for the current financial year relies on several factors, including the stability of imported coal prices, growth in the renewable energy segment, and the sustainability of Sec 11 orders for the Mundra ultra mega power plant, which have been extended until October 2024.
Despite positive industry trends such as the continued growth in power demand in India and stable coal prices over the past several months, brokerages CLSA and Kotak maintained a ‘sell’ rating on Tata Power.
CLSA attributed the weak performance in the fourth quarter to poor profitability in the renewable energy sector. The brokerage also expressed concerns about the quality of Tata Power’s results, noting that a significant portion of its earnings was supported by dividends of Rs 700 crore from ITPC. CLSA set a target price of Rs 297 per share, indicating a potential downside of around 32 percent.
Similarly, Kotak’s price target of Rs 265 implied that the stock’s fair value was approximately 40 percent lower than its current levels.
Despite Tata Power shares having gained over 100 percent in the past year, outperforming the broader Nifty 50 index, both brokerages remained cautious about the company’s future prospects and maintained their ‘sell’ recommendations.
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