HDFC Bank, Zomato, Infosys, Axis Bank, Paytm, NTPC shares: 10 stock ideas by Bernstein
Axis Bank :Bernstein said the ending of uncertainty around the impact of the Citi deal and receding risk of a supply glut has helped Axis bank outperform peers since H2FY23.
- Oct 10, 2023,
- Updated Oct 10, 2023 8:27 AM IST
Bernstein has updated its India portfolio, a composition of bottom-up ideas for the rest of the year. Bernstein introduced NTPC Ltd and One 97 Communications Ltd (Paytm) in the list while it removed Reliance Industries (RIL), State Bank of India (SBI), Lupin and L&T Technology Services from the model portfolio.
"We retain HDFC Bank and Axis Bank in Financials, Infosys in IT, Delhivery and Zomato in consumer tech. Biocon is retained in Healthcare, L&T in Industrials and Ultra tech in Cement," it said.
Bernstein said evening power shortages are on the rise in India and the solution to this is to add more thermal power. It said NTPC is only the large player leading new investment in this space . Renewables (RE), Bernstein said, require 2-3 times the capex of a thermal plant, and an operating renewable plant does not throw enough cash to fund a new one (first 12 years debt servicing).
NTPC has a borrowing cost of 6-7 per cent compared to 9-10 per cent for most private players.
"In a business where the cost of debt is the biggest differentiator as execution is relatively easy we see them make superior return than peers. Further they have a tripartite agreement with Reserve Bank of India (can dip into state budget if DISCOM does not pay NTPC) - this allows them to get better receivables than private competitors," it said.
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Bernstein has updated its India portfolio, a composition of bottom-up ideas for the rest of the year. Bernstein introduced NTPC Ltd and One 97 Communications Ltd (Paytm) in the list while it removed Reliance Industries (RIL), State Bank of India (SBI), Lupin and L&T Technology Services from the model portfolio.
"We retain HDFC Bank and Axis Bank in Financials, Infosys in IT, Delhivery and Zomato in consumer tech. Biocon is retained in Healthcare, L&T in Industrials and Ultra tech in Cement," it said.
Bernstein said evening power shortages are on the rise in India and the solution to this is to add more thermal power. It said NTPC is only the large player leading new investment in this space . Renewables (RE), Bernstein said, require 2-3 times the capex of a thermal plant, and an operating renewable plant does not throw enough cash to fund a new one (first 12 years debt servicing).
NTPC has a borrowing cost of 6-7 per cent compared to 9-10 per cent for most private players.
"In a business where the cost of debt is the biggest differentiator as execution is relatively easy we see them make superior return than peers. Further they have a tripartite agreement with Reserve Bank of India (can dip into state budget if DISCOM does not pay NTPC) - this allows them to get better receivables than private competitors," it said.
Also read: Coal India shares: All-time high dividend likely in pre-election year, says Nuvama
Also read: Plaza Wires IPO allotment status, latest GMP, listing date & more