Comments
CD Equisearch
PTC India Fin (Buy)
CMP: ₹55.60
Target: ₹64
PTC India Financial Services Ltd (PFS) is a non-banking finance company with the objective of devoting itself mainly for providing financial solutions to projects in the energy value chain. India is the fourth largest importer of oil and the sixth largest importer of petroleum products and LNG globally. The increased use of indigenous renewable resources is expected to reduce India’s dependence on expensive imported fossil fuels. The government is playing an active role in promoting the adoption of renewable energy resources by offering various incentives, such as generation-based incentives, capital and interest subsidies, viability gap funding, concessional finance, fiscal incentives, etc.
Wind energy equipment prices have fallen dramatically due to technological innovation, increasing manufacturing scale and experience curve gains. Prices for solar modules have declined by almost 80 per cent since 2008 and wind turbine prices have declined by more than 25 per cent during the same period. The government has created a liberal environment for foreign investment in renewable energy projects. PFS has a loan book of ₹5,883 crore as on December 31, 2014. We expect this to touch ₹7,000 crore and ₹10,500 crore in FY15 and FY16 respectively. For the year 2015e and 2016e we expect the spreads to maintain the same trend.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.