Latest news with #InCred
Mint
4 days ago
- Business
- Mint
InCred plans second PE fund of up to ₹1,500 crore, eyes bigger cheques
Mumbai: After closing its maiden private equity fund at ₹575 crore earlier this year, InCred Alternative Investments is preparing to raise a significantly larger second fund of ₹1,000-1,500 crore, a top executive told Mint. The firm plans to increase its average deal size and tap a more institutional pool of investors for this fundraise. 'We will try to inject larger amounts from the second fund onwards and are targeting an average ticket size of ₹140-150 crore across 7-8 companies, up from ₹75-85 crore in the first fund," said Vivek Singla, managing partner at InCred Alternative Investments, told Mint in an interview. The fundraising process will start in the next quarter, though final timelines and fund size will depend on market conditions, he added. Read this | VC fundraising wave gains momentum as dealmaking rebounds, but caution prevails InCred's second fund will seek capital from both domestic and international investors, with domestic investors expected to contribute about 75% of the corpus. This marks a slight shift in its limited partner (LP) mix. In the first fund, while domestic investors formed the majority, most international investors were non-resident Indians (NRIs). Roughly 80-85% of the maiden fund came from domestic investors, with the rest from non-resident Indians. So far, InCred has invested in six companies from its first fund: Niva Bupa, Purplle, Manjushree Technopack, Shadowfax, Biryani by Kilo and Celebal Technologies. About 55% of the fund's capital has been deployed, with more deals in the pipeline. The firm's investment strategy focuses on companies with meaningful scale, strong product-market fit, operational profitability and a clear IPO path within 3-4 years. Target sectors include consumer, technology, enterprise and financial services. InCred also looks for valuation discounts relative to listed peers, Singla said. 'Given that the fund has a six-year duration, there is only a certain segment of companies that we can invest in. We prefer high-growth companies that are likely to have a liquidity event in the near term," he said. Singla noted that this approach is partly driven by the differing return expectations of domestic and international LPs. Domestic investors generally seek quicker returns, prompting the firm to balance its portfolio between growth and late-stage companies to better manage liquidity expectations. Its sector allocation also reflects a mix of new economy and traditional economy businesses to provide stability, he added. Read this | Private equity eyes fresh bite of regional food brands, repeat of Haldiram The fundraising environment has changed since the pandemic years, with founders placing greater emphasis on building sustainable, profitable businesses. 'In 2021, founders were largely focused on maximizing valuations. After having gone through a deep learning curve, their focus is not just on valuation but creating value," Singla said. Fundraising momentum has picked up over the past six to eight months, with several private equity and venture capital firms launching new funds, including Kedaara, ChrysCapital, Stellaris Ventures, India Quotient, Sixth Sense, Prime Ventures, Accel, A91 Partners, Cornerstone VC and Bessemer Venture Partners. Others such as Nexus Venture Partners, Lok Capital, Chiratae Ventures, Peak XV Partners, WEH Ventures, Avataar Venture Partners, Blume Ventures and Fireside Ventures are also preparing to raise fresh capital. Also read | Plenty of courtships, but no one's tying a knot in Indian edtech Last year, PE/VC fundraising in India declined to $10.4 billion across 95 funds, down from $15.9 billion across 102 funds in 2023, according to a report by EY India published in January. After peaking at around $17.4 billion across 99 funds in 2022, fundraising has trended lower, though EY maintains that the outlook remains positive into 2025, citing favourable macroeconomic conditions, stable government policies, and an expected correction in public markets that could improve deal volume.
Mint
4 days ago
- Business
- Mint
Nifty around 25,000: Are earnings strong enough to justify valuations?
India's benchmark Nifty 50 index is inching closer to the reclaim psychologically important 25,000 mark, buoyed by strong domestic liquidity, policy optimism, and improving macro indicators. After rising nearly 5 percent in 2025 so far, the index continues to attract investor attention even amid global uncertainties. However, the question remains: is this optimism supported by underlying earnings growth? In a recent report, brokerage house InCred Equities pointed out that while high-frequency macro data shows a mixed picture for both domestic and export-oriented sectors, recent government policies have rekindled optimism for a broader economic revival. Factors like a stronger-than-expected monsoon, easing fuel prices, and expectations of a higher repo rate cut by the Reserve Bank of India have begun to lift consumer sentiment. The brokerage highlighted that rural demand, in particular, is likely to benefit from favourable weather and price stability, while urban consumption should see relief from easing inflation. According to InCred, Nifty-50 companies reported a modest 5 percent year-on-year growth in profit after tax (PAT) for the March 2025 quarter, which fell short of Bloomberg consensus by about 1 percent. This lag comes in stark contrast to developed markets like the US, which saw strong earnings beats. It noted that EBITDA growth excluding BFSI stood at a healthy 20 percent, driven largely by retail, telecom, and capital goods sectors. However, sectors like cement continued to struggle. The FY26 earnings per share (EPS) forecast for the Nifty-50 has been revised down by 2 percent, with IT, consumer discretionary, industrials, and BFSI leading the downgrades. Citing improving macro fundamentals—such as the potential for an above-normal monsoon and declining crude oil prices—InCred raised its bull-case probability from 25 percent to 35 percent. As a result, it revised its blended Nifty-50 target marginally higher to 25,142 (from 24,280 earlier) by March 2026, indicating a limited 1 percent upside from current levels. However, the brokerage cautioned that while valuations have reverted to their 10-year average, short-term earnings downgrades and cautious management commentary remain key concerns. It further added that with the recent rally lifting Nifty's valuation, especially in the small- and mid-cap space, investors need to become more selective. The Nifty Smallcap-100 index now trades at a premium to the broader Nifty-50, raising caution over stretched valuations. InCred has added Camline Fine Sciences to its high-conviction list, booked profits in Adani Ports and Cipla, and initiated coverage on mid-sized banks with an Overweight rating, given their improving liquidity and cost advantage. Meanwhile, brokerages such as Goldman Sachs and Jefferies have also raised their Nifty targets to the 25,000–25,500 range, citing India's stable macro environment, manageable inflation, and growing global fund flows. Domestic investors, too, continue to support the rally with SIP inflows hitting a record ₹ 21,000 crore in May 2025. However, InCred warned that multiple risks remain. The upcoming US Federal Reserve policy decision on June 18 could sway global sentiment, while escalating geopolitical tensions and slow rural demand recovery could act as spoilers. Rising input costs may also hurt corporate margins, leading to possible valuation corrections if FY26 earnings disappoint. Overall, the Nifty's approach toward the 25,000 level appears to be driven more by optimism and liquidity than robust earnings expansion. InCred believes that while the broader macro environment provides some tailwinds, stretched valuations, muted earnings upgrades, and global headwinds temper the rally's sustainability. For investors, the focus must now shift to bottom-up stock picking with an emphasis on quality, earnings visibility, and valuation comfort, as the market enters a more mature phase of its bull run. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Entrepreneur
5 days ago
- Business
- Entrepreneur
InCred Money Enters Retail Broking with Acquisition of Stocko
With the acquisition, InCred Money will now provide a wider array of investment options, including fixed deposits, alternative investments, equities, and derivatives, tailored for digital-first investors. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. InCred Money, the retail wealth-tech arm of the InCred Group—has announced its entry into retail broking through the proposed acquisition of South Asian Stocks Limited (SASL), widely known by its brand name 'Stocko'. Stocko, a discount broker with a daily notional turnover of approximately INR 1 lakh crore, will be rebranded as InCred Stocko, subject to regulatory approvals. The platform will be integrated into InCred Money, expanding its digital-first wealth and investment offerings to now include equities and derivatives trading. "This acquisition marks a pivotal milestone in our journey to build a full-stack financial ecosystem," said Bhupinder Singh, Founder and Group CEO of InCred. "Stocko gives us a proven platform with serious volume, and we'll bring our tech, capital, and customer-first mindset to unlock its full potential." Founded in 2013, Stocko has earned a solid reputation among retail investors and active traders for its flat-rate pricing—INR 12.99 per order and subscription models as low as INR 2.99 per order—and user-friendly interface. It offers trading across equities, derivatives, commodities, and currencies, making it a one-stop-shop for serious market participants. With the acquisition, InCred Money will now provide a wider array of investment options, including fixed deposits, alternative investments, equities, and derivatives, tailored for digital-first investors. Shrey Jain, CEO of Stocko, stated, "This is a massive leap forward for us. With InCred's backing, we'll scale faster, innovate harder, and roll out smarter products—from enhanced margin funding to sharper tech. Our goal is simple: to become one of India's top 20 brokers in the next two years, and top 10 in four to five years." The existing Stocko team will continue to lead operations under the InCred banner, ensuring continuity, innovation, and client-centricity through the transition. Founded in 2016, InCred Group is a diversified financial services company, with a strong presence across lending, asset and wealth management, capital markets, and now, retail investing.
Economic Times
5 days ago
- Business
- Economic Times
InCred bets on Camlin, midcap banks; Exits Adani Ports, Cipla amid tepid earnings outlook
InCred Equities has turned selective on Indian equities, adding Camlin Fine Sciences and mid-sized banks to its high-conviction list while dropping Adani Ports and Cipla. The brokerage's reshuffle comes amid slowing earnings momentum, even as broader markets rally on improving macroeconomic signals. ADVERTISEMENT Despite tailwinds from a forecast of above-normal monsoon rains, easing oil prices and a sharper-than-expected rate cut by the Reserve Bank of India, InCred flagged a widening gap between macro hopes and actual earnings performance. For the March 2025 quarter, Nifty-50 companies posted just 5% year-on-year growth in profit after tax, with earnings falling short of Bloomberg consensus by 1%. 'EBITDA growth, ex-BFSI sector, was healthy at 20% yoy, driven by retail, telecom and capital goods sectors,' the brokerage said, but noted continued declines in the cement sector and subdued results across automobiles, FMCG, IT, and power. This has led to a 2% cut in the FY26 consensus EPS forecast for the Nifty-50. Camlin Fine Sciences was added with an 'Add' rating, with InCred citing 'stabilization of its vanillin plant and the imposition of antidumping duties on vanillin in the U.S.' as key triggers for a stronger profit outlook. Mid-sized banks were given an 'Overweight' rating, with the brokerage expecting improved liquidity to reduce funding the same time, InCred removed Adani Ports from its list, saying 'we book profit as its market price is now close to our target price,' and dropped Cipla from the list due to 'near-term margin pressure stemming from its product mix.'Technical indicators continue to support UPL, Skipper, and Petronet LNG, which remain on the radar as momentum plays, the brokerage said. ADVERTISEMENT The brokerage raised its bull-case probability to 35% from 25% earlier and increased its Nifty50 March 2026 target to 25,142, just a 1% upside from current levels. 'The sustained rise in Nifty-50 index in the last three months has lifted forward P/E valuation to a 10-year mean level,' InCred noted, cautioning that most macro positives may already be priced in. While telecom, FMCG, utilities and commodity stocks saw earnings upgrades, the brokerage highlighted cuts across IT, consumer discretionary, industrials, and BFSI sectors. Major double-digit EPS upgrades in the broader Nifty200 universe were seen in SAIL, Power Finance Corporation, InterGlobe Aviation (IndiGo), Mahindra & Mahindra, and BPCL. InCred concluded that 'macro hopes yet to reflect in earnings,' reinforcing the need for a stock-specific approach as headline indices near valuation ceilings. ADVERTISEMENT Also read | ONGC, Oil India shares gain up to 3% as Israel-Iran conflict drives crude higher; drag on refiners, tyre makers (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Economic Times
11-06-2025
- Business
- Economic Times
Adani Power shares snap 5-day rally, slip over 1% amid profit-taking
Shares of Adani Power slipped as much as 1.2% on Wednesday to Rs 589 on the BSE, snapping a five-day rally that saw the stock surge nearly 12% since June 3. The decline appears to reflect profit-booking after a sharp upward move driven by a combination of technical strength and long-term growth triggers. ADVERTISEMENT The stock had rallied to an intraday high of Rs 610 on Tuesday, gaining 8.2% during the session and marking its fifth consecutive day of gains. Despite a mixed March-quarter performance—with net profit falling 4% year-on-year to Rs 2,637 crore and a sequential decline of 14%—investor sentiment remained upbeat, supported by long-term order wins and capacity expansion plans. Revenue for the quarter rose 6.5% YoY to Rs 14,237 crore, though it fell 4% compared to the December quarter. Total expenses during the period surged 9% YoY to Rs 11,274 crore. The recent rally was partially driven by Adani Power's announcement in May of a Rs 2 billion greenfield thermal power project. The company secured a Letter of Award to supply 1,500 MW of electricity to Uttar Pradesh Power Corporation Ltd under a long-term power purchase agreement. ADVERTISEMENT The power will be generated from a 2×800 MW ultra-supercritical plant, developed under the DBFOO (Design, Build, Finance, Own, and Operate) InCred Equities, which initiated coverage in May with an 'Add' rating and a price target of Rs 649, described Adani Power as a 'pure play on the Indian thermal space.' It noted that the company generated Rs 200 billion in recurring EBITDA in FY25, backed by a stable revenue mix. ADVERTISEMENT InCred also highlighted the company's merchant power exposure via the Indian Energy Exchange (IEX), with realised prices ranging from Rs 5–6/kWh and peaking at Rs 10/ ahead, Adani Power plans to expand capacity from 17.55 GW to 30.67 GW by FY30, including brownfield additions such as Mahan Phase II (1.66 GW), Raipur Phase II (1.66 GW), and Korba Revival (1.32 GW). InCred noted that this expansion aligns with India's projected 5–6% annual power demand growth, which is expected to drive peak demand to 458 GW by FY32F. ADVERTISEMENT Despite muted earnings, technical indicators remained supportive. The stock has been trading above all eight key simple moving averages—from the 5-day to the 200-day SMA. The Relative Strength Index (RSI) stood at 68.8, near the overbought threshold of 70, while the MACD reading of 6.9 stayed above both its center and signal lines, reinforcing bullish momentum until the latest the stock has gained 15.4% over the past month and 8.5% in the past week, it remains down 23% over the past year, underperforming both the Nifty 50 and Nifty Energy indices. ADVERTISEMENT According to Trendlyne, analyst sentiment remains strong, with a consensus 'Strong Buy' rating on the stock. Also read | From bankruptcy to bull run: Can Reliance Infra & Reliance Power fuel Anil Ambani's comeback saga? (Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
