On the first day of the 20th Nuvama India Conference 2025, managements of a dozen of companies including that of Suzlon Energy Ltd, YES Bank Ltd, Waaree Energies Ltd, Tata Power Ltd and Vedanta Ltd offered industry assessment, business insights and their perspicacity on emerging trends.
YES Bank expects margin expansion from FY26 onwards, while Vedanta sees major benefits of lower alumina price and higher contribution of captive alumina to reflect from Q1FY26. Waaree Energies said its expansion is on track and that module and cell capacity may touch 21GW and 11GW, respectively, by FY27. Tata Power too has ramped up solar module and cell manufacturing. In the case of Suzlon Energy, the management expects the wind turbine generator (WTG) contribution to be 20 per cent going forward against mid-to-high-teens earlier.
Suzlon Energy Suzlon Energy has ramped up its execution to 447MW in Q3FY25, aided by capacity ramp-up to 4.5GW coupled with a sturdy Ebitda margin of 16.8 per cent. The management suggested that a robust order inflow of 800 MW bulked up the order book to a record 5.5GW, which is executable over 24 months. Suzlon Energy continued to maintain a market share of 30 per cent-plus and is benefitting from a duopolistic market in EPC capabilities. Nuvama has retained its ‘Buy’ on the stock with a target price of Rs 60, valuing Suzlon at 35 times FY27 EPS.
YES Bank Nuvama said the private bank expects NIM expansion to begin from FY26, driven by retail asset growth and better yields. Credit cost is seen remaining below 50 basis points for FY25 versus 20 bps currently.
"A meaningful reduction was there in the bank’s RIDF deposits, which now stand at 8 per cent of total assets versus 10.5–11 per cent over the last few quarters. iv) YES expects to achieve its guidance of Rs 5,000 crore in recoveries for FY25 versus Rs 4,443 crore in 9MFY25," Nuvama noted.
The bank has a CET-1 of 13.3 per cent with no immediate plans to raise equity. The stock is trading at 1.2 times FY26E consensus book value. Nuvama does not track this stock.
Waaree Energies Nuvama said Waaree Energies' expansion plan is on track. The company intends to expand module and cell capacity to 21GW and 11GW by FY27. It has commissioned 1.6GW module capacity in the US. Waaree's 9MFY25 order book stood at 26.5GW.
The management sees no major impact of IRA halt and is looking to foray into manufacturing electrolysersfor green hydrogen and battery manufacturing. It has been awarded PLI for a 300MW electrolyser manufacturing facility.
"Acquisition of ENEL Green Power to be soon consummated. The stock is trading at 20x/12x FY26E/27E consensus EPS," Nuvama said.
Tata Power Tata Power's Q3 profit expanded 9 per cent YoY, but included a one-off regulatory income at Mundra that optically inflated profit figure. Tata Power said solar module and cell manufacturing has ramped up, as it is mostly used in captive solar plants, aiding IPP segment IRRs.
"We stay optimistic on Tata Power's RE transition (65 per cent mix by FY28), solar manufacturing (50 per cent external sales by FY27) and optionality of solar rooftops and nuclear. However, growth is back-ended and priced in. Retain ‘REDUCE’ with a Target (SotP) of Rs 343 (implied BV of 2.5x FY27," Nuvama said.
Vedanta The Vedanta management suggested that alumina cost to have peaked in Q3FY25 and major benefits of lower alumina price and higher contribution of captive alumina shall reflect from Q1FY26. VRL’s debt has been managed at average interest rate of less than 10 per cent in H2FY26E against 13.3 per cent earlier, with the debt maturity extending to FY34. The demerger of the business likely by July 2025, it said.
"We remain positive amid triggers such as a high dividend (Rs 35 in FY26), cost reduction and volume growth in aluminium and zinc from FY26, and demerger of businesses; retain ‘BUY’ with a target of Rs 663," it said.