The state-run PSU s acquisition of a controlling stake in Numaligarh Refinery (NRL) and the hope of an increase in oil production have resulted in a revision in its earning estimates, say analysts, some of whom see the stock almost doubling.
Three top Canadian pension funds, including Caisse de dépôt et placement du Québec (CDPQ), and leading local insurers such as Life Insurance Corp and HDFC Life are among the frontline investors likely to buy into the infrastructure investment trust (InvIT) of the National Highways
This has been achieved through a combination of reduction in cost of debt by 80-160bps, reduction in corporate overheads by 20-40% from pre-Covid levels, operating cash surpluses, asset sales and equity capital raises either through the QIP route or through dilution at the SPV level.
Analysts do not see an end to this pain. They say Vodafone Idea s liabilities are much higher than what its profit & loss (P&L) statement indicates. Default is a real risk at the telecom operator, they add, slashing the stock s target to as low as Rs 4, suggesting up to 29 per cent downside.
Both analysts and bankers believe credit demand will now pick up as companies invest for the next cycle of growth. In a report published earlier this month, Japanese investment bank Nomura said growing optimism and abundant liquidity should boost loan demand.