India - Politics, Industrials, IT and Large Caps, EMAlpha

Pankaj Sharma

India - Politics, Industrials, IT and Large Caps

Thematic (Sector/Industry)

In a change of strategy from the Central Government on how to raise money through PSUs, there is an increased possibility that buybacks could become the preferred option over disinvestment because of not-so-good market conditions and consistent underperformance of PSUs over some time. While a large and 'at premium' buyback by PSUs could temporarily help the stock price, the support is unlikely to last long. There is a negative impact on balance sheet health, less money available post buyback for growth plans and questionable timing. The share buyback will not really do much to address the medium and long term underperformance of PSU stocks unless fundamental issues are resolved.

In a change of strategy from the Central Government on how to raise money through PSUs, there is an increased possibility that buybacks could become the preferred option over disinvestment because of not-so-good market conditions and consistent underperformance of PSUs over some time. While a large and 'at premium' buyback by PSUs could temporarily help the stock price, the support is unlikely to last long. There is a negative impact on balance sheet health, less money available post buyback for growth plans and questionable timing. The share buyback will not really do much to address the medium and long term underperformance of PSU stocks unless fundamental issues are resolved.

India: Share Buyback Could Be Positive for PSUs, but It Will Only Be a Temporary Relief

<h2>The Regulator, CERC sets new tariff norms after five years</h2>The Power Sector Regulator, Central Electricity Regulatory Commission (CERC) will start the process of setting tariff regulations for the next five years starting 1st April 2019. (<a href="https://economictimes.indiatimes.com/industry/energy/power/cerc-readying-paper-on-tariff-norms-for-2019-24/articleshow/64282204.cms" target="_blank">Source</a>)The tentative timelines could be as follows:<ol>
<li>June 2018 - Release of draft paper by CERC for public consultations and comments from stakeholders.</li>
<li>August/September 2018 - Public hearing on draft paper from the stakeholders including consumer groups.</li>
<li>…</li>
</ol>

The Regulator, CERC sets new tariff norms after five yearsThe Power Sector Regulator, Central Electricity Regulatory Commission (CERC) will start the process of setting tariff regulations for the next five years starting 1st April 2019. (Source)The tentative timelines could be as follows:
June 2018 - Release of draft paper by CERC for public consultations and comments from stakeholders.
August/September 2018 - Public hearing on draft paper from the stakeholders including consumer groups.
…


India Power Sector: Regulator Will Tweak Tariff Norms from April 2019 - Potential Winners and Losers

Asia-Focused Industry Research, Speeda Research

Speeda

Asia-Focused Industry Research

Speeda Research

Speeda Research analysts cover China, Japan, India and SEA on the latest trends and topics. We have analysts of diverse nationalities who are able to access information in their respective local languages to provide customers with comprehensive reports. With access to private company data in these regions, Speeda Research is also able to provide insights into niche sectors which are not usually covered by other parties. We are also able to undertake ad hoc company and industry research reports.

NDA Government Promotes Disinvestment as a Tool to Improve Corporate Governance and Efficiency of Public Sector UndertakingsPrivatisation served as a crucial agenda for Margaret Thatcher who came into power under the pretext that the government had no business to be in business. By the end of her term, 670 public sector companies had been privatised. India began its own model of disinvestment in 1991-92 as part of its economic reforms. The process was expedited after the formation of the…

NDA Government Promotes Disinvestment as a Tool to Improve Corporate Governance and Efficiency of Public Sector UndertakingsPrivatisation served as a crucial agenda for Margaret Thatcher who came into power under the pretext that the government had no business to be in business. By the end of her term, 670 public sector companies had been privatised. India began its own model of disinvestment in 1991-92 as part of its economic reforms. The process was expedited after the formation of the…

ETFs and Retail Discounts Seen as Tools to Speed Up Disinvestments in Indian Public Sector Companies

In July 2015, the Indian government set a target of 10 million PNG (piped natural gas) connections to be made within two years. But as of September 2016, the government was 7 million short of its goal with the odds of achieving it in less than a year seeming very low. Increasing PNG and CNG (compressed natural gas) connections are part of the government’s wider plan to more than double the share of natural gas in India’s energy mix to 20% by 2025. To achieve this goal, the government needs to ramp up transmission infrastructure and increase capacity of import infrastructure to cater to the expected surge in natural gas imports, apart from introducing key policies with regards to pricing, taxation and regulation. Based on past evidence and the information provided within this report, we think the government will fall short of its energy mix targets, just like it did in the PNG segment.

In July 2015, the Indian government set a target of 10 million PNG (piped natural gas) connections to be made within two years. But as of September 2016, the government was 7 million short of its goal with the odds of achieving it in less than a year seeming very low. Increasing PNG and CNG (compressed natural gas) connections are part of the government’s wider plan to more than double the share of natural gas in India’s energy mix to 20% by 2025. To achieve this goal, the government needs to ramp up transmission infrastructure and increase capacity of import infrastructure to cater to the expected surge in natural gas imports, apart from introducing key policies with regards to pricing, taxation and regulation. Based on past evidence and the information provided within this report, we think the government will fall short of its energy mix targets, just like it did in the PNG segment.

Falling Natural Gas Production and Poor Import Infra Make PNG a Distant Dream for Most Indians

Asia focused research insights & advisory, Asia Advisors

Vinay Patel

Asia focused research insights & advisory

Asia Advisors

Asia Advisors is an independent financial advisory and research firm working closely with corporates and institutions to provide consulting solutions & research insights. We provide advisory services including capital solutions, business strategy and investment insights.
Firm is headed by Vinay Patel who has close to two decades of experience in research and business development at large, international investment banks such as HSBC and ICICI Securities. Led research efforts in areas of Macroeconomics, Asset Allocation & Investment Strategy for close to a decade in global & domestic research teams. As a business head in Singapore, advised top global investment management firms & Portfolio managers in Asia for India related investments.
Vinay was recently joined by Swapnil Manish, an investment banker and ex-ecommerce entrepreneur with more than 12 years of experience. Swapnil was the TMT banker at BNP Paribas and was part of several large M&A and ECM transactions (Bharti-Zain, Bharti Infratel IPO, Schneider-Zicom among several others). He's also had a stint as an ecommerce entrepreneur having launched & led Mumbai's first online grocery player.

Expectations on economic reforms from Modi government are running high after the big win in Uttar Pradesh. Political analysts are expecting this win to ease Modi's chances for another term at national elections in 2019 and that would give him total 7 year period to push for reforms (In his victory speech Modi himself said he is now looking for delivering by 2022 - the 75th year of Indian Independence). Amidst the euphoria of Modi's victory, we would like to highlight some of the ground realities…

Expectations on economic reforms from Modi government are running high after the big win in Uttar Pradesh. Political analysts are expecting this win to ease Modi's chances for another term at national elections in 2019 and that would give him total 7 year period to push for reforms (In his victory speech Modi himself said he is now looking for delivering by 2022 - the 75th year of Indian Independence). Amidst the euphoria of Modi's victory, we would like to highlight some of the ground realities…

Investors Need To Be Patient With Reform Momentum Even As Modi Win Ensures Policy Continuity

India

NHPC Ltd is a hydro-power development company based in India. The Company has constructed approximately 11 hydro-power projects in India and abroad with a total installed capacity of 2554.35 MW.

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NHPC (NHPC IN)

India Power Sector: Regulator Will Tweak Tariff Norms from April 2019 - Potential Winners and Losers

The Regulator, CERC sets new tariff norms after five yearsThe Power Sector Regulator, Central Electricity Regulatory Commission (CERC) will start...

Pankaj Sharma

ETFs and Retail Discounts Seen as Tools to Speed Up Disinvestments in Indian Public Sector Companies

NDA Government Promotes Disinvestment as a Tool to Improve Corporate Governance and Efficiency of Public Sector UndertakingsPrivatisation served as...

Speeda Research

Falling Natural Gas Production and Poor Import Infra Make PNG a Distant Dream for Most Indians

In July 2015, the Indian government set a target of 10 million PNG (piped natural gas) connections to be made within two years. But as of September...

Speeda Research

Investors Need To Be Patient With Reform Momentum Even As Modi Win Ensures Policy Continuity

Expectations on economic reforms from Modi government are running high after the big win in Uttar Pradesh. Political analysts are expecting this...

Asia Advisors

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

India: Share Buyback Could Be Positive for PSUs, but It Will Only Be a Temporary Relief

In a change of strategy from the Central Government on how to raise money through PSUs, there is an increased possibility that buybacks could...

Pankaj Sharma

India Power Sector: Regulator Will Tweak Tariff Norms from April 2019 - Potential Winners and Losers

The Regulator, CERC sets new tariff norms after five yearsThe Power Sector Regulator, Central Electricity Regulatory Commission (CERC) will start...

Pankaj Sharma

ETFs and Retail Discounts Seen as Tools to Speed Up Disinvestments in Indian Public Sector Companies

NDA Government Promotes Disinvestment as a Tool to Improve Corporate Governance and Efficiency of Public Sector UndertakingsPrivatisation served as...

Speeda Research

Falling Natural Gas Production and Poor Import Infra Make PNG a Distant Dream for Most Indians

In July 2015, the Indian government set a target of 10 million PNG (piped natural gas) connections to be made within two years. But as of September...

Speeda Research

Investors Need To Be Patient With Reform Momentum Even As Modi Win Ensures Policy Continuity

Expectations on economic reforms from Modi government are running high after the big win in Uttar Pradesh. Political analysts are expecting this...

Asia Advisors