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Power & Capital Goods Sector results preview - IndiaNotes.com
Power & Capital Goods Sector results preview
Reliance Securities | Published: 16 Jan, 2018  | Source : IndiaNotes.com

Sectoral Outlook


Domestic power sector continues to face problems relating to poor system demand, low PPAs, and poor financials of the DISCOMs. However, recently launched UDAY scheme witnessed positive response from the DISCOMs, which should eventually lead to improvement in their financial health and ability to draw more power. We believe that improvement in policy environment and infrastructure spend coupled with manufacturing activities will aid in reviving demand environment of the power sector. In our view, implementation of UDAY scheme is expected to improve power demand in FY19E, while increase in coal output would provide a much needed fillip to the sector.

We believe ordering activities have improved on transmission and railways electrification front. Looking ahead, we expect further pick-up pushed by schemes like UDAY, DDUGJY, IPDS, Housing for All, and SAUBHAGYA etc. These schemes are expected to result in better cash flows and new investments in state T&D networks and Independent Power Producers (IPPs), going forward.

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About Reliance Securities

Reliance Securities, the broking arm of Reliance Capital, is one of the India’s leading retail broking houses, providing customers with access to equities, derivatives, currency, IPOs, mutual funds, bonds, and corporate FDs amongst others. The large array of financial offerings helps customers fulfilling their investment objectives on one platform. Focus on timely & error-free execution represents its core strength. Their best in class research offerings, high degree of compliance with stock exchange regulations, ethical business standards, & strong risk management capabilities; Reliance Securities positions itself amongst strong & innovative brands in the financial services space.


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