Month: October 2021

1. Gita Renewable Energy:

This company works to generate power using renewable sources including water, solar and hydro. After its listing way back in 2015, the company has been incurring losses and for the first time turned profitable in Q4 fy 21, which also helped the company in soaring in share price. Interestingly, the stock’s 1-year return is at a staggering 3738%. This is an increase from a share price of over Rs. 5 as on October 13, 2020 to currently over Rs. 211 apiece on the NSE.

2. JSW Energy:

This company is the private sector power generating entity that believes in efficient utilization of all resources. The company has been making endeavours and harnessing the power of sun. The company currently generate 4,559 MW, out of which 3158 MW is thermal power,1391 MW is hydropower and 10 MW solar power.

Over the 1-year period, the stock of this company has surged over 500 percent from a price of Rs. 58.65 to Rs. 379.85 as the last traded price.

3. Waaree Renewable Technologies:

Waaree is both a Global leading manufacturer of solar PV modules and a provider of solar energy solutions. Owning the Largest solar panel module manufacturing facility in India of 2 GW, Waaree is now the largest solar Module manufacturer in India.

The company to its credit has three rooftop 400-800 KWp (kilowatt peak) installations in Karnataka, Maharashtra and Haryana. So, it is more of a service provider than a power generator.

This company also during the 1-year time has made record gains of over 900 percent from a price of Rs. 18 on October 14, 2020 to currently over Rs. 185 per share.

4. Borosil Renewables:

The solar glass manufacturing company, established in the year 2010, has also made record gains during the last one year of 421 percent. The country’s huge solar glass requirement on a daily basis is met through imports from China and Malaysia. The company is the only solar glass manufacturing company meeting a huge chunk of the overall demand.

5. Websol Energy System:

This stock also gained a good 345% in the last one year to currently priced at Rs. 86 from levels of Rs. 19 a year ago.

Websol Energy System Limited is a leading manufacturer of photovoltaic crystalline solar cells and modules in India. With a state-of-the-art integrated production facility at Falta SEZ, Sector II, Falta, West Bengal, Websol has steadfastly delivered an advanced and excellent products since 1994.

GoodReturns.in

Setting a near 30% upside on the stock

Emkay Global sees a near 30% upside potential on the stock of Ramkrishna Forgings from the current levels to a target price of Rs 1,530 and that too in 1-year’s time.

“Ramkrishna Forging delivered 26% EBITDA beat versus our Q2 forecasts, driven by a 10% revenue beat and 300bps EBITDA margin beat. Revenue surprise was supported by higher-than-expected sales in industrials, while margin beat was driven by inventory gains. ROE based on H1 annualized profits expanded to a healthy 16%,” the brokerage has said. Order bookings according to Emkay Global remained consistent from auto and industrial customers in India and overseas markets.

“Recent orders could add incremental revenues of up to Rs5bn in FY23E/24E, in our view. Beginning the execution of some orders in FY22 can provide an upside risk to our FY22 volume estimates by 5%,” the brokerage has said.

Strong quarter

According to Emkay Global revenue grew 129% yoy to Rs5.8bn, above our estimate of Rs 5.3 billion, aided by higher-than-expected revenues in the Industrials segment. Domestic revenue grew 115% to Rs 2.9 billion, led by a 70% volume surge. In comparison, export revenue grew 152% to Rs 2.9 billion, led by a 100% volume jump. EBITDA margin expanded by 600 basis points yoy to 24%, (Consensus est.: 21%) above estimates, led by inventory gains. Consequently, net profits increased from Rs 21 million in Q2FY21 to Rs 0.5 billion in Q2FY22, above the estimate of Rs 0.4 billion,” the brokerage has said.

Retain buy with a price target of Rs 1,530

Emkay Global has retained a buy on the stock of Ramkrishna Forging. “With a DCF-based Dec’22 TP of Rs1,530, implying a forward EV/EBITDA of 9x. Operating leverage, B/S deleveraging, diversification and continued order wins/flows are likely to put on Ramkrishna Forging on a sustainable path of profitability. ROE is likely to rise from a low of 3% in FY21 to 23% in FY24E, driven by better margins and asset turnover,” the brokerage has said.

According to Emkay Global the key risks include delay in auto sector/macro recovery, client concentration risk and adverse currency.

Disclaimer

The above stocks are picked from the brokerage report of Emkay Global. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.

A study conducted by the portal BrokerChoose’s annual crypto proliferation index reveals that at over 10 crore, India has the largest number of crypto owners in the world followed by the US and Russia.

As a percentage of the population, India has the fifth-highest rate of crypto owners at 7.3%. This index is topped by Ukraine at 12.73% of the population, followed by Russia at 11.91%, Kenya at 8.52% and the US at 8.31%.

The study also evaluated internet searches in various countries to assess the interest in cryptocurrencies.

In the past twelve months, India had the second-highest number (nearly 36 lakh) of total crypto searches, while the US saw the highest number of crypto searches at 69 lakh.

In fact, India ranked second out of 154 countries on the 2021 Global Crypto Adoption Index by Chainalysis in August this year.

India’s market grew 641% over the past year, the report showed, using a metric that estimates the total cryptocurrency received by a country.

“Large institutional-sized transfers above $10 million worth of cryptocurrency represent 42 per cent of transactions sent from India-based addresses,” said the report, adding that the numbers suggest that India’s cryptocurrency investors are part of larger, more sophisticated organisations.

Point to note: The world’s biggest cryptocurrency, bitcoin, has already gained more than 50% since the start of the year. The one-year gain stands at around 400%, which is promoting more and more Indians to opt for crypto exchanges.

A survey conducted by consulting firm Kantar shows that 19% of urban Indians intend to invest in virtual tokens in the next six months. And when it comes to crypto ownership, Bitcoin rules the roost with a preference of 75 per cent, followed by Ethereum at 40 percent, Binance coin at 23 per cent, and XRP at 18 per cent.

One major attraction is the chance to earn high profits by investing in small amounts. WazirX allows investments into bitcoin with as little as Rs100-500.

Indians who own cryptocurrency are mostly in the age bracket of 21 to 35 and live in metro cities. The owners have a “higher risk appetite”, the survey said, as they are preferring crypto, mutual fund over the fixed deposits and life insurance.

So a spurt in the popularity of crypto exchanges and platforms in recent months like CoinSwitch Kuber (CSK), WazirX, CoinDCX, ZebPay, Unocoin and BuyUcoin etc is not surprising.

Crypto exchange Zerodha has over seven million users against 11 million at CoinSwitch Kuber. There are 8.3 million at WazirX.

Unocoin has even launched deposits via UPI wallets in the Indian currency for a faster top-up to buy and sell Bitcoins and other cryptocurrencies on the platform despite the uncertainty among the prospective users regarding the usage of cryptocurrency in comparison to real money.

Last week, CoinSwitch Kuber raised over $260 million in Series C funding round from a clutch of investors, valuing the company at $1.9 billion.

A survey conducted by consulting firm Kantar shows that 19% of urban Indians intend to invest in virtual tokens in the next six months. And when it comes to crypto ownership, Bitcoin rules the roost with a preference of 75 per cent, followed by Ethereum at 40 per cent, Binance coin at 23 per cent, and XRP at 18 per cent.

Indian start-ups in the crypto space have received 73% more funding in the first six months of calendar 2021 compared to the whole of 2020, shows data from Tracxn. Another NASSCOM report titled ‘Crypto Industry in India’, said that more than 60% of states in India are emerging as crypto tech adopters, with the industry set to reach 241 million dollars by 2030 in India.

But cryptocurrencies are yet to be accepted as legal tender and lack legal framework and regulatory norms in the country.

The ball is currently in the court of the finance ministry and the Reserve Bank of India (RBI).

A cryptocurrency bill is expected in the winter session. The finance ministry has also reportedly formed a new committee to find out if income made by crypto-trading could be taxed.
Meanwhile, RBI is also looking to launch its first official digital currency as a regulated “central bank digital currency (CBDC)” by the end of 2021. Much of the scepticism stems from the fact that a worldwide boom in cryptocurrency has bred the ground for fake trading platforms.

But with larger investors warming to crypto and other digital assets, the total amount of funding for global blockchain companies hit a record $6.586 billion in the September quarter, almost double of that raised in 2020, according to market intelligence platform Blockdata.

On Monday, cryptocurrency analytics firm Elliptic raised $60 million from investors including SoftBank and Wells Fargo Strategic Capital.

The company tracks the movement of cryptocurrencies on blockchain to help financial crime compliance.

Earlier in May, a Brazilian money management firm focused on cryptocurrencies raised about $26 million from investors including SoftBank Group Corp and in July the SoftBank Latin America fund invested $200 million in the Series B funding of 2TM Group, the digital asset group that owns cryptocurrency exchange Mercado Bitcoin.