Latest news with #NuvamaInstitutionalEquities
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Business Standard
2 days ago
- Business
- Business Standard
Reliance Industries' solar leap prompts Nuvama's highest-ever target price
RIL in focus: Domestic brokerage Nuvama Institutional Equities (Nuvama) has raised its target price on oil-to-telecom conglomerate Reliance Industries Ltd (RIL) to ₹1,801—the second highest on Dalal Street after Mirae Asset Securities (Buy, ₹1,950, 14/10/2024). The upgrade by Nuvama reflects RIL's foray into external sales of high-efficiency solar modules and the major growth potential of its rapidly expanding New Energy business. The brokerage expects these developments to add majorly to profits and drive a re-rating akin to the market response during the RJio rollout in 2017. At the core of this upgrade is RIL's recent commencement of sales of heterojunction technology (HJT) solar modules, a move confirmed during the company's latest analyst meet. 'We forecast it shall add 6 per cent to PAT (a la Tata Power) and shine out a huge valuation kicker (Waaree/Premier),' Nuvama noted in its report. The brokerage also highlighted strong parallels with listed peers. 'Drawing comparison with Waaree's (13.3/5.4GW)/Premier's (4/3.2GW) solar module/cell capacity, whose enterprise value (EV) is about $10/6 billion, RIL's 20GW fully integrated solar equipment manufacturing facility could command a much higher EV. Waaree/Premier is trading at 14x/15x FY27E EV/Ebitda; ascribing 15x EV/Ebitda to RIL's modules business (20GW capacity) yields an EV of $20 billion, which could trigger a valuation re-rating for RIL—similar to the trend seen post-RJio's launch in 2017," the brokerage explained. Beyond solar, RIL's ambitions span across the green energy spectrum. The company is in the process of building a 30GWh battery storage facility and has entered a technology tie-up with Nel ASA for electrolyser manufacturing, the brokerage noted. Green hydrogen and 55 compressed biogas (CBG) plants are also part of the roadmap. 'At its AGM in August 2024, RIL had guided for a remarkable surge in the New Energy business… with expectation of its profitability equalling O2C profitability in the next five–seven years,' the report said. Currently, the O2C (Oil-to-Chemicals) segment accounts for over half of RIL's attributable PAT and around 40 per cent of Ebitda. The New Energy business, as per Nuvama, has the potential to add '50 per cent-plus to consolidated PAT' by FY30, dramatically reshaping the group's profit mix. With visibility improving on both profitability and integration in the New Energy vertical, Nuvama urges investors to 'watch out for the upcoming AGM in August/September,' which may further flesh out this transformational roadmap. The brokerage reiterated its 'Buy' rating on RIL, driven by 'potential for higher-than-expected module profits' and the valuation re-rating opportunity.
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Business Standard
2 days ago
- Business
- Business Standard
Reliance Ind's solar leap prompts Nuvama's highest target price on D-Street
RIL in focus: Domestic brokerage firm Nuvama Institutional Equities (Nuvama) has raised its target price on oil-to-telecom conglomerate Reliance Industries Ltd (RIL) to ₹1,801—the highest on the Street (Dalal Street)—citing the company's entry into external sales of high-efficiency solar modules and the massive upside potential from its fast-evolving New Energy business. The brokerage expects these developments to add majorly to profits and drive a re-rating akin to the market response during the RJio rollout in 2017. At the core of this upgrade is RIL's recent commencement of sales of heterojunction technology (HJT) solar modules, a move confirmed during the company's latest analyst meet. Notably, these modules have been included in MNRE's Approved List of Models and Manufacturers (ALMM), and are fetching over 5 per cent premium over TOPCon modules, backed by a 23.1 per cent efficiency. Nuvama forecasts that the company's 10GW module and cell capacity, to be fully operational by early CY26, could contribute an incremental ₹3,800 crore to consolidated profit after tax (PAT), equivalent to 6 per cent of FY25 earnings. 'We forecast it shall add 6 per cent to PAT (a la Tata Power) and shine out a huge valuation kicker (Waaree/Premier),' Nuvama noted in its report. The brokerage also highlighted strong parallels with listed peers. 'Drawing comparison with Waaree's (13.3/5.4GW)/Premier's (4/3.2GW) solar module/cell capacity, whose enterprise value (EV) is about $10/6 billion, RIL's 20GW fully integrated solar equipment manufacturing facility could command a much higher EV. Waaree/Premier is trading at 14x/15x FY27E EV/Ebitda; ascribing 15x EV/Ebitda to RIL's modules business (20GW capacity) yields an EV of $20 billion, which could trigger a valuation re-rating for RIL—similar to the trend seen post-RJio's launch in 2017," the brokerage explained. Beyond solar, RIL's ambitions span across the green energy spectrum. The company is in the process of building a 30GWh battery storage facility and has entered a technology tie-up with Nel ASA for electrolyser manufacturing, the brokerage noted. Green hydrogen and 55 compressed biogas (CBG) plants are also part of the roadmap. 'At its AGM in August 2024, RIL had guided for a remarkable surge in the New Energy business… with expectation of its profitability equalling O2C profitability in the next five–seven years,' the report said. Currently, the O2C (Oil-to-Chemicals) segment accounts for over half of RIL's attributable PAT and around 40 per cent of Ebitda. The New Energy business, as per Nuvama, has the potential to add '50 per cent-plus to consolidated PAT' by FY30, dramatically reshaping the group's profit mix. With visibility improving on both profitability and integration in the New Energy vertical, Nuvama urges investors to 'watch out for the upcoming AGM in August/September,' which may further flesh out this transformational roadmap. The brokerage reiterated its 'Buy' rating on RIL, driven by 'potential for higher-than-expected module profits' and the valuation re-rating opportunity.
India Gazette
3 days ago
- Business
- India Gazette
Rural FMCG volume grew thrice urban volume growth in Q4FY25, similar trend likely to continue: Report
New Delhi [India], June 30 (ANI): Driven by increased distribution of freebies and a positive sentiment from good monsoon, rural market in India's fast-moving consumer goods (FMCG) sector continues to outperform urban areas, according to a recent report by Nuvama Institutional Equities. The report stated that rural markets continued to outpace urban areas in the overall FMCG sector. It noted that rural demand is already doing well and remains strong, while urban markets are facing pressure and are likely to stay under strain until the first half of FY26. However, urban demand is expected to start improving from the second half of FY26, the report stated. In terms of volume growth, rural regions have shown remarkable performance. For the fourth consecutive quarter, rural areas have grown more than twice as fast as urban regions. In Q4FY25, rural FMCG volumes grew by 8.4 per cent, while urban volume growth stood at 2.6 per cent, it said. The report also highlighted that the FMCG sector volumes in Q4FY25 saw rural growth being three times higher than urban areas. Initial data for Q1FY26 suggests a similar trend is likely to continue. Overall, the consumer sector grew 11 per cent year-on-year (YoY) by value in Q4FY25, compared to 10.6 per cent YoY in Q3FY25. Pricing growth was reported at 5.6 per cent, while overall volumes expanded by 5.1 per cent YoY, a slight decline from the 7.1 per cent YoY growth recorded in Q3FY25. Despite the positive performance in rural markets, the FMCG sector saw a significant selloff by foreign portfolio investors (FPIs) in the first half of June 2025. According to the report, FMCG recorded the highest outflows of Rs 36.3 billion, after receiving net inflows worth Rs 8.2 billion in May. Until May, the sector witnessed sales worth over Rs 140 billion. The report added that FPIs showed a strong inclination towards rate-sensitive and beta plays, contributing to the withdrawal from FMCG stocks. (ANI)
Economic Times
5 days ago
- Business
- Economic Times
$1.86 billion worth of IPO shares set to unlock in July: Nuvama Report
A significant volume of pre-IPO shareholder lock-ins worth $ 1,860 million is set to expire in July 2025, potentially reshaping the shareholding structure of several recently listed companies. ADVERTISEMENT According to a report by domestic brokerage Nuvama Institutional Equities, the lock-in expiries next month span across multiple companies and include both promoter and non-promoter holdings. The expiring shares cover both one-month and six-month lock-in tenures. While these shares will become eligible for trading, the report notes that not all will necessarily be sold in the open market, as a considerable portion may continue to be held by promoters and strategic long-term investors. Under the one-month lock-in category, three companies are scheduled to see their restricted shares unlock in July. Scoda Tubes, with a lock-in value of $ 5 million, will unlock on 2nd July. Arisinfra Solutions follows with $ 10 million worth of shares becoming tradable on 23rd July, and Oswal Pumps will unlock shares worth $ 27 million on 18th July. The total lock-in value under the one-month category is $ 42 million. In the six-month lock-in segment, six companies are expected to see significantly larger expiries. Unimech Aerospace & Manufacturing leads with a lock-in value of $ 501 million, unlocking on 1st July. Standard Glass Lining Tech. will see $ 259 million worth of shares unlock on 11th July, followed by Quadrant Future Tek with $ 123 million on 14th July. Laxmi Dental is scheduled for $ 105 million worth of unlocks on 21st July. Indo Farm Equipment will witness two separate unlock events: $ 51 million worth of shares on 10th July, and an additional $ 2 million on 11th July, taking the combined total to $ 53 million. ADVERTISEMENT The lock-in expiries in July also include other companies such as RBZ Jewellers ($ 14 million), Vraj Iron & Steel ($ 37 million), Medi Assist Healthcare ($ 82 million), Jyoti CNC Automation ($ 598 million), and Sanstar Limited ($ 46 million). While these companies are set for unlocks in July, Nuvama's broader lock-in analysis covers a total of 57 companies between 30th June and 30th October 2025, with an aggregate lock-in value of $ 15 billion. The study includes companies listed up to 25th June 2025. ADVERTISEMENT Such expiries are closely watched by market participants, as they can lead to changes in liquidity, free float, and shareholding patterns in the post-IPO phase. Also read: Rs 1 lakh crore selloff tsunami threatens Nifty rally as promoters, strategic investors exit (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
5 days ago
- Business
- Time of India
$1.86 billion worth of IPO shares set to unlock in July: Nuvama Report
A significant volume of pre-IPO shareholder lock-ins worth $ 1,860 million is set to expire in July 2025, potentially reshaping the shareholding structure of several recently listed companies . According to a report by domestic brokerage Nuvama Institutional Equities, the lock-in expiries next month span across multiple companies and include both promoter and non-promoter holdings. The expiring shares cover both one-month and six-month lock-in tenures. While these shares will become eligible for trading, the report notes that not all will necessarily be sold in the open market, as a considerable portion may continue to be held by promoters and strategic long-term investors. Under the one-month lock-in category, three companies are scheduled to see their restricted shares unlock in July. Scoda Tubes , with a lock-in value of $ 5 million, will unlock on 2nd July. Arisinfra Solutions follows with $ 10 million worth of shares becoming tradable on 23rd July, and Oswal Pumps will unlock shares worth $ 27 million on 18th July. The total lock-in value under the one-month category is $ 42 million. In the six-month lock-in segment, six companies are expected to see significantly larger expiries. Unimech Aerospace & Manufacturing leads with a lock-in value of $ 501 million, unlocking on 1st July. Standard Glass Lining Tech. will see $ 259 million worth of shares unlock on 11th July, followed by Quadrant Future Tek with $ 123 million on 14th July. Laxmi Dental is scheduled for $ 105 million worth of unlocks on 21st July. Live Events Indo Farm Equipment will witness two separate unlock events: $ 51 million worth of shares on 10th July, and an additional $ 2 million on 11th July, taking the combined total to $ 53 million. The lock-in expiries in July also include other companies such as RBZ Jewellers ($ 14 million), Vraj Iron & Steel ($ 37 million), Medi Assist Healthcare ($ 82 million), Jyoti CNC Automation ($ 598 million), and Sanstar Limited ($ 46 million). While these companies are set for unlocks in July, Nuvama's broader lock-in analysis covers a total of 57 companies between 30th June and 30th October 2025, with an aggregate lock-in value of $ 15 billion. The study includes companies listed up to 25th June 2025. Such expiries are closely watched by market participants, as they can lead to changes in liquidity, free float, and shareholding patterns in the post-IPO phase. Also read: Rs 1 lakh crore selloff tsunami threatens Nifty rally as promoters, strategic investors exit ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
