Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

Equity Bottom-Up

<ul>
<li>Recently awarded "Maharatna" status, only 12 companies, FY24 is first full year for this</li>
<li>Growth is steady, with good returns, and major improvement in credit metrics</li>
<li>Its 4.77% dividend yield is incredibly high and about 3x higher than peers</li>
</ul>


Recently awarded "Maharatna" status, only 12 companies, FY24 is first full year for this
Growth is steady, with good returns, and major improvement in credit metrics
Its 4.77% dividend yield is incredibly high and about 3x higher than peers


RECL - Near Insatiable Power Credit Demand, Great NPL Trend, New Maharatna Status, 3x Avg Div Yield

External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

External broker reports(aggregated public sources)

Motilal Oswal Financial Services Limited

Motilal Oswal Financial Services Limited is an Indian diversified financial services firm offering a range of financial products and services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Rural Electrification Corp (RECL)’s 3QFY25 PAT grew ~23% YoY to INR40.3b. NII grew ~20% YoY to ~INR51.3b. Other income rose ~260% YoY to~INR2b.</li><li>Opex rose ~78% YoY/~63% QoQ to ~INR3.1b and the cost-to-income ratio was ~5% (PQ: 3.1% and PY: ~4.7%).</li><li>The sequential jump in opex was mainly due to higher CSR expenses. PPoP rose ~20% YoY to INR50.2b in 3QFY25. Yields (calc.) rose ~3bp QoQ to ~10.01%, while CoB increased ~4bp QoQ to ~7.32%, resulting in a largely stable spread QoQ at ~2.7%.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Rural Electrification Corp (RECL)’s 3QFY25 PAT grew ~23% YoY to INR40.3b. NII grew ~20% YoY to ~INR51.3b. Other income rose ~260% YoY to~INR2b.Opex rose ~78% YoY/~63% QoQ to ~INR3.1b and the cost-to-income ratio was ~5% (PQ: 3.1% and PY: ~4.7%).The sequential jump in opex was mainly due to higher CSR expenses. PPoP rose ~20% YoY to INR50.2b in 3QFY25. Yields (calc.) rose ~3bp QoQ to ~10.01%, while CoB increased ~4bp QoQ to ~7.32%, resulting in a largely stable spread QoQ at ~2.7%.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Rural Electrification Corp - Minor Weakness in AUM Growth Due to Higher Rundown

External broker reports(aggregated public sources), Emkay Global Financial Services Limited

Emkay

Emkay Global Financial Services Limited

Emkay Global Financial Services Ltd. is a leader in the financial services sector, actively creating wealth for our clients for over two decades. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>REC reported a satisfactory quarter in terms of margins, credit cost, and asset quality, while growth in Q3 was a tad below expectations on account of higher repayment and resolution of NPAs; however, disbursement remained strong.</li><li>Asset quality continues to improve on account of resolution in NPA assets which resulted in a negligible credit cost (approx -0.6%).</li><li>The management expects total recovery and write-back of ~Rs22bn next year (from 4 projects resolved through the NCLT), including recovery of Rs3.5bn from the KSK Mahanadi project in Q3. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

REC reported a satisfactory quarter in terms of margins, credit cost, and asset quality, while growth in Q3 was a tad below expectations on account of higher repayment and resolution of NPAs; however, disbursement remained strong.Asset quality continues to improve on account of resolution in NPA assets which resulted in a negligible credit cost (approx -0.6%).The management expects total recovery and write-back of ~Rs22bn next year (from 4 projects resolved through the NCLT), including recovery of Rs3.5bn from the KSK Mahanadi project in Q3. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

REC Ltd - Enough Fuel to Power Growth, Profitability; Attractive Valuation

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analysed the earning revision of component stocks of MSCI India in the past month.</li>
<li>We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.</li>
<li>We highlighted EPS revision on Adani Enterprises, Shriram Finance, Bharat Petroleum, One 97 Communications, State Bank of India, GMR Airports, Fortis Healthcare, Oil India, Shriram Finance, Oil India.</li>
</ul>


We analysed the earning revision of component stocks of MSCI India in the past month.
We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.
We highlighted EPS revision on Adani Enterprises, Shriram Finance, Bharat Petroleum, One 97 Communications, State Bank of India, GMR Airports, Fortis Healthcare, Oil India, Shriram Finance, Oil India.


MSCI India Index Earning Revision (Nov): Adani Enterprises, Shriram Finance, Bharat Petroleum

External broker reports(aggregated public sources), Axis Direct

Axis Direct

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>REC Ltd. (REC) is a public sector enterprise in India that supports and finances the power projects and infrastructure assets throughout the country.</li><li>The company offers financing services across the entire value chain from generation (~28%) to distribution (~40%) and is progressively expanding its portfolio to include non-power infrastructure and logistics, focusing on sectors such as airports, metro, ports, refineries, highways etc.</li><li>As on 30th September, 2024, the company has an AUM of ~Rs 5.5 Lc Cr with ~88% allocated to state and 12% to the private sector.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

REC Ltd. (REC) is a public sector enterprise in India that supports and finances the power projects and infrastructure assets throughout the country.The company offers financing services across the entire value chain from generation (~28%) to distribution (~40%) and is progressively expanding its portfolio to include non-power infrastructure and logistics, focusing on sectors such as airports, metro, ports, refineries, highways etc.As on 30th September, 2024, the company has an AUM of ~Rs 5.5 Lc Cr with ~88% allocated to state and 12% to the private sector.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Axis Punch - REC Ltd - 15th January, 2025

India

REC Limited operates as a financial firm. The Company provides loan assistance to various state and central power utilities, private sector project developers, and state governments for investments in power generation, transmission, distribution, and other system improvement schemes. REC serves clients in India.

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REC (RECL IN)

RECL - Near Insatiable Power Credit Demand, Great NPL Trend, New Maharatna Status, 3x Avg Div Yield

High demand for power related lending can last for decades, marked improvement in credit metrics, new Maharatna status (only 12 companies have...

Daniel Tabbush

Rural Electrification Corp - Minor Weakness in AUM Growth Due to Higher Rundown

Rural Electrification Corp (RECL)’s 3QFY25 PAT grew ~23% YoY to INR40.3b. NII grew ~20% YoY to ~INR51.3b. Other income rose ~260% YoY to~INR2b.

Motilal Oswal

REC Ltd - Enough Fuel to Power Growth, Profitability; Attractive Valuation

REC reported a satisfactory quarter in terms of margins, credit cost, and asset quality, while growth in Q3 was a tad below expectations on account...

Emkay

MSCI India Index Earning Revision (Nov): Adani Enterprises, Shriram Finance, Bharat Petroleum

We analyzed MSCI India's consensus for Nov 2025 and highlighted changes of EPS in Adani Enterprises (ADE/S IN), Shriram Finance (SHFL IN), Bharat...

Ke Yan, CFA, FRM

Axis Punch - REC Ltd - 15th January, 2025

REC Ltd. (REC) is a public sector enterprise in India that supports and finances the power projects and infrastructure assets throughout the country.

Axis Direct

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