CMP: Rs. 1,731.95

Recommendation: Buy

Investment Horizon: 1 to 3 Years        

Urmi Shah – Research Analyst

Date – 31.01.2023

Outlook and view

Power Finance Corporation is a Non-Banking Financial Institution (NBFC), which provides financial assistance to Power companies. The company has performed well in the past, with growth across all metrics delivering healthy returns for its shareholders. The strong emphasis on Make in India has opened many doors for foreign companies to set up manufacturing in India. This will enhance the power requirement. The current boom in the capital expenditure cycle and indigenization will further enhance the growth prospects for the company. Also, the business intends to expand its presence in the renewable segment as well which gaining traction.

Strengths

Focus on the financing of renewable energy projects – In FY2021-22, 15% of their gross loan assets comprised renewable energy. This figure is expected to increase in the future. During the year, there was a 1.5 times increase in their EC bond portfolio, which stood at Rs. 3999 crores (as of 31.03.2022).

Robust financials – PFC has delivered healthy growth over the past few years. It has grown its revenues by 23% and 12% CAGR in the last 5 and 3 years. The net profit has compounded at 44% and 12% CAGR in the past 5 and 3 years, respectively. It clocked a return on equity of 19% in the past 3 years. 

Macro-economic Tailwinds – Central government schemes like UDAY (Ujwal DISCOM Assurance Yojana), the financial turnaround and revival package for distribution companies in India, have met with limited success. Strong demand outlook as the energy demand is expected to increase. The company intends to align its business operations to leverage emerging opportunities in Ē-mobility and increased thrust in the transmission and distribution (T&D) space.

Revised norms by the government – The Revamped Distribution Sector Scheme (RDSS) is a reform-based and results-linked scheme, which plans to reduce AT&C losses to 12-15% by FY 2024-25 and reduce the ACS-ARR gap to zero through financial support to Discoms for upgradation of the Distribution Infrastructure and Prepaid Smart Metering & System Metering. PFC (along with its subsidiary REC) are the designated nodal agency for the operationalisation of this scheme. Under RDSS scheme an outlay of Rs. 3,03,758 crores and a Government grant of Rs. 97,631 crores is planned of which REC and PFC are the primary beneficiaries.

Consistent Decline in the non-performing assets – PFC’s standalone Gross NPA and Net NPA have consistently slid down in the past 3.5 years. From GNPA of 9.4% in FY19 to 4.75% in H1FY23. The NNPA has fallen as low as 1.31% for the first half of FY23 from 4.55% in FY19.

Risks

Risk of default – The Company runs a risk of default especially given the company concentrates on giving loans to the power sector. Any lag in the development projects or issues with permissions etc. can lead to default of payments by the borrowers.

High customer concentration – There are few players in the sector. PFC being a product concentration company, will loan funds to these concentrated number. This increases the risk as the money is limited to few hands and poses as a risk for PFC.

Valuations

Recently, the company’s stock price has witnessed a strong rally. Despite that the company seems to have more headroom to grow. It currently trades at a Price to Book of 0.52, at par with its median P/B of 0.5x. With the reforms now taking shape, the company is in an attractive phase ready for growth.

About the Company

Incorporated in 1986, Power Finance Corporation Ltd. is a Schedule-A Maharatna Central Public Sector Enterprises (CPSE) and is a leading Non-Banking Financial Company (NBFC) in the country. Their portfolio includes financial products and services such as rupee term loans, short-term loans, equipment lease financing, transitional financing services, etc. for various power projects in the generation, transmission, and distribution sectors. The clients mainly include central power utilities, state power utilities, private power sector utilities (including independent power producers), joint sector power utilities and power equipment manufacturers.

Financial Overview

Story in Charts

Starting with the GNPA% and NNPA%, the company has seen a decline in the same.

Loan Assets mainly comprise of financing to public sector as of March 2022.

The Loan Asset Mix comprises of four segments as shown below

Having a look at cost of funds, it is consistently declining over the past years.

Other Details

Shareholding Pattern as of 30th September 2022

Price Performance Vs Nifty50

The post Samco’s Picks of the Month – March 2023 first appeared on Support | Samco.

CMP: ₹584.45 

Recommendation: Buy

Investment Horizon: 3 years

Veer Trivedi – Research Analyst

Date – December 01, 2022.

Outlook and view

Life Insurance is a high growth business which is fairly underpenetrated and has a high protection gap. The top four player constitute around 85% of the New Business premium (NBP) of the industry. Thus, as the sector will grow the big players involved are bound to grow too. HDFC Life is one of the major players in this segment. To win at this industry there are essentially two major criteria which are required. A diversified product mix with a focus on protection business and a strong distribution channel backed by a strong bank. HDFC Life fulfills both the criteria effectively. A strong product mix, solid cost efficiency measures and the support from the regulator will ensure a good performance going forward. The stock has witnessed underperformance in recent period. This correction had made the stock available at an attractive price.

Key Positives

Diversified product Mix: HDFC Life has a balanced product mix versus peers. Non-par savings has a share of 31% to its total APE, whereas the Participating share stands at 26% and protection at a healthy 16%. HDFC life had a first mover advantage in the protection business and thus have been able to generate a good market share in this segment.

Strong distribution network: The company has a well-diversified distribution network. The key to winning the market share in Life Insurance is to have a strong Bancassurance presence. Over the years the share of Bancassurance in HDFC Life has grown at a good rate. In FY18 the Banks formed a 47% share in its distribution mix vs 55% in FY22.

Exide merger complimentary for HDFC Life: The acquisition will add 35% to the company’s existing agent base. Further, Exide Life has a significant presence in tier 2-3 cities and down south. This will aid the company to push the growth peddle.

Other metrics robust: In the latest quarter the company generated a strong Return on EV at 19%. The Life Insurer’s persistency ratio stood at 87.1% which improved 120 bps year-on-year. The company’s AUM grew by 17.6% YoY, whereas the total APE witnessed growth of 18.1% YoY.

Key Risks

Stress in HDFC Bank distribution: The growth in the HDFC Bank channel which contributes around 48% of its premium has slowed down. However, post the merger of HDFC Ltd and HDFC Bank, HDFC Life will become the subsidiary of the HDFC Bank and thus there would be alignment with the goals of HDFC Bank and HDFC Life.

Subdued Premium Growth: In the current half year period i.e., H1 FY23 HDFC Life has grown at a slower pace than its peers. The company has also witnessed weakness in its Individual protection segment.

About the company

HDFC Life is a leading Life Insurance provider in India. The company offers Individual and group products for the savings and protection requirements of the customers. The company as of H1 FY23 has a total AUM of INR 2,249 billion. HDFC Life is a joint venture between HDFC Ltd and Standard Life Aberdeen. HDFC Life has a wide distribution network which comprises of individual agents, bancassurance partners, third-party agents etc.

Financials Snapshot

Key Metrics:

Story In charts:

The post Samco’s Picks of the Month – December 2022 first appeared on Support | Samco.

One of the most-awaited festivals, Ganesh Chaturthi has arrived. The celebrations has started all around the India. This Ganesh Chaturthi we want all our valued partners celebrate these 15 days with high energy and gift something exclusive to their clients, also at the same point of time earn some handsome cash incentive.

Keeping this in mind here we are with the Ganesh Chaturthi Festive Offer:

Benefits for you:

• Refer and onboard your clients to earn ₹300* on each activated account.
• Additionally earn up to 50% commission from your clients’ brokerage and subscription-based products offered by Samco. 

Benefits for your clients:

• 100% brokerage cashback for the first month
• Access to sophisticated platforms to trade & invest.
• Access to Stock, Mutual funds & StockBasket recommendations from the Samco research experts every month.

How does it work?

• Refer and onboard clients to Samco
• Introduce them to the Samco Ecosystem which includes StockNote, StockBasket, KyaTrade & RankMF.
• Encourage them to trade on the StockNote platform and enjoy your incentive.

It’s a great time to become a Samco Partner!

So, start onboarding clients today and start earning your cash incentive!

Onboard Clients Now

And if you haven’t completed your Samco partner registration, there is no better time than now to do so. Grab this offer by signing up to be a Samco Partner now. Become a Samco Partner Now → 

Terms & Conditions:

1. Clients referred and onboarded between 31st Aug 2022 to 15th Sept 2022 will be eligible for incentives calculation.
2. By activated account we mean your referred client should at least place a trade on the StockNote app.
3. To get activated clients can place order till 20th Sept 2022 for incentive calculation.
4. Incentives payout shall be processed with Oct’2022 month payout.

The post Samco Partners Ganesh Chaturthi Incentive Offer first appeared on Support | Samco.

In this 75th Year of Independence, we are running an offer for samco clients, get Flat 50% off on a Cashplus subscription.

What is CashPlus?

Samco offers a host of leverage products to investors and traders, one of them is CashPlus. CashPlus enhances your equity delivery buying leverage.

CashPlus is Samco’s equity delivery leverage product that allows investors to get up to 4X margin against cash in over 400+ stocks for equity delivery trades. In simple terms, if you have Rs.1,00,000 cash balance in your Samco ledger account, you can buy stocks in delivery for up to Rs. 4,00,000 with a CashPlus subscription.

You can carry forward your Delivery Trades Ad Infinitum as long as your margins remain within the prescribed limits.

How CashPlus work?

CashPlus gives you additional margins to buy shares in delivery against your cash balance

The following table explains how enhanced delivery leverage works with a CashPlus subscription.

You can Explore CashPlus Margin Calculator here

CashPlus Independence Day offer:

Get CashPlus Subscription Now @50% off. 

Offer Duration period: 15th, 16th, and 17th August 2022

Who is eligible for this offer?

• All clients who haven’t subscribed to CashPlus
• All CashPlus Expired subscribers.

Teams and Conditions: 

• Subscribe to CashPlus between 15th August 2022 to 17th August 2022.
• Payments must be made between 15th August 2022 to 17th August 2022.
• The offer won’t be valid for renewal cashplus clients.

To know more about CashPlus you can refer to this blog – Read More

If you are facing any problems while subscribing, feel free to contact us on 022-2222-7777 or 022-4503-0450 or write to us at support@samco.in

The post CashPlus Independence Day Offer first appeared on Support | Samco.

When your start a side gig besides your 9-5 job, you should be partnering with such businesses which present you with limitless and numerous opportunities to upscale your income. You must have definitely heard of the saying ‘To get something, you must give something’; invest your time and money in such businesses which will compensate you by increasing your efforts to your earned income ratio.

With the Samco Partner Program, you can rely on everything! From presenting you with n number of times of chances to helping you to push your limits, we do it all. By introducing new clients and onboarding them through our powerful, smart, next-gen platforms, we’ll reward you generously for each successful referral.

Presenting Samco Partners’ July Bonus

Introduce clients to Samco and earn

₹30,000* 

and more…

From 5th to 31st July 2022

It is an incentive offer you wouldn’t want to miss!

Referring clients to Samco and getting them on board will earn you incentives of Rs. 300 per account from 5th to 31st July 2022

Meaning, if you refer 100 clients within the offer period, you can earn Rs. 30,000 as cash incentive!

Benefits for you:

Refer and activate your clients to earn a bonus worth Rs. 300 on each account.

Benefits for your clients:

Your onboarded clients get to enjoy the following benefits at Samco –

• Free trading account
• AMC free Demat account for the 1st year
• 100% brokerage cashback for 1st month on StockNote
• KyaTrade subscription at Re. 1 for 1st month

And a lot more…

How does it work:

Refer and activate clients to receive a cash bonus worth Rs. 300 on each account until 31st July 2022. And if you refer 100 clients within the offer period, you can earn Rs. 30,000 as a cash bonus!

It’s a great time to be a Samco Partner!

So, start onboarding your clients today and start earning your bonus!

Onboard Clients Now

And if you haven’t completed your Samco partner registration, there is no better time than now to do so. Grab this offer by signing up to be a Samco Partner now. Become a Samco Partner Now → 

Book an appointment with our relationship managers if you need any further assistance. Book Appointment Now

T&Cs:

1. Refer leads and get their accounts activated with at least 1 trade before 31st July 2022.
2. Only the leads referred between 5th to 31st July 2022. 2022 will be eligible for the incentives payout. 
3. Incentives payout shall be credited by 15th August 2022.

The post Samco Partners’ July Bonus first appeared on Support | Samco.

Samco partners have their own perks. With the Samco Partner Program, you can earn a handsome amount of money in a concise time. By introducing new clients and onboarding them through our powerful, smart, next-gen platforms, we’ll reward you generously for each successful referral. Since it’s our 3rd Anniversary too, we have thought of splurging our partners with generous rewards.

Presenting Samco Partners’ 3rd Anniversary Bonus

Introduce clients to Samco and earn

₹30,000* 

and more…

From 7th to 30th June 2022

It is an incentive offer you wouldn’t want to miss! 

Benefits for you:

• Get Rs. 50 as incentives for opening an account (on or before 30th June)
• Get additional Rs. 250 once your referred clients place their 1st trade (on or before 30th June)

Meaning, by referring clients to Samco and getting them activated with at least 1 trade will earn you incentives of Rs. 300 per traded account from 7th to 30th June 2022.

Benefits for your clients:

Your onboarded clients get to enjoy the following benefits at Samco –

• Free trading account
• AMC free Demat account for the 1st year
• 100% brokerage cashback for 1st month on StockNote
• KyaTrade subscription at Re. 1 for 1st month

And lots more…

How does it work:

Refer and activate clients with at least 1 trade to receive a cash bonus worth Rs. 300 on each account until 30th June 2022. And if you refer and activate 100 clients within the offer period, you can earn Rs. 30,000 as a cash bonus!

It’s a great time to be a Samco Partner!

So, start onboarding clients today and start earning your bonus!

Onboard Clients Now

Book an appointment with our relationship managers if you need any assistance. Book Appointment Now

For any further queries, connect with our RMs on WhatsApp.
Pranita Bansode – 7738001895
Afroz Shah – 8433972623

T&Cs:

1. Refer leads and get their accounts activated with at least 1 trade until 30th June 2022 to qualify for the incentives.
2. Only the leads referred between the offer period (7th to 30th June 2022) will be eligible for the incentives. 
3. Incentives payout shall be credited by 15th July 2022.

The post Samco Partners’ 3rd Anniversary Bonus first appeared on Support | Samco.

At Samco, we constantly strive to bring you the most lucrative ways for you to make the best out of your clients.

Throughout the year, we’ve given a variety of incentive offers so that you make the most of your onboarded clients and keep earning huge incentives. This month, we have something similar for you, except this time, we are going bigger!

Presenting the best and most ambitious incentive offer we’ve ever put out.

Introducing The Samco Partner’s Winter Bonanza

From 5th – 31st Dec. 2021, we are rewarding you with incentives that you cannot overlook.

Earn incentives up to

₹500* 

on each activated 3-in-1 account!

Benefits for you:

Refer and activate your clients and earn incentives on each account. Here’s a detailed table showing the different slabs of benefits you’ll earn by the number of clients you refer:

Benefits for your clients:

Your onboarded clients get to enjoy the following benefits at Samco –

• Free trading account
• AMC free demat account for the 1st year
• 100% brokerage cashback for 1st month on StockNote
• KyaTrade subscription at Re. 1 for 1st month

And lots more…

How does it work:

Refer and activate up to 10 clients and you’ll earn Rs. 100 on each account, i.e. you’ll be eligible for the incentives as per slab 1. Likewise, on referring and activating more than 50 accounts, you’ll be eligible for incentives as per slab 4, on each account.

Meaning, you can potentially earn up to Rs 25,000 once you refer and activate 50 clients within the offer period.

The incentive you earn will be based on the number of clients you activate within the offer period. Refer the above table for the slab-wise incentive structure.

It’s a great time to be a Samco Partner!

So, start onboarding your clients today and start earning your incentives!

Start Onboarding Clients Now

And if you haven’t completed your registration to be a partner with us, there is no better time than now to do so. Grab this offer by signing up to be a Samco Partner now. Become a Samco Partner Now → 

Terms and Conditions

1. Leads must be referred between 5th Dec to 20th Dec’2021 to be eligible for this offer.
2. Referred accounts must be activated with atleast 1 trade per account until 31st Dec’2021 for the incentives.
3. Incentives payout shall be processed by 15th Jan’2021.

The post The Samco Partner’s Winter Bonanza first appeared on Support | Samco.