Prime Stock Update: Why this quasi-equity instrument continues in our ‘Buy’ list

Why this listed InvIT is our pick!

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15 thoughts on “Prime Stock Update: Why this quasi-equity instrument continues in our ‘Buy’ list”

  1. Thanks for the detailed review.
    Is there any platform to browsing / buying these kinds of REITS?

    1. REITs are traded in stock exchanges like stocks and hence available through your brokerage account.

  2. Where can one find the latest Factsheet and NAV for this investment trust? Thanks.

  3. Anandkumar Mehta

    Also – I would appreciate if you can share your perspective on why PowerGrid InvIT is trading below book and how do you see that as an option to play Power sector InvITs. Also – if you can throw some light on the massive erosion of price that we saw in PowerGrid InvIT. Do you think that the same scenario can potentially play out in IndiGrid.

    1. We have mentioned it at the end and may review it later as it is not something that can be explained through comment 🙂 Vidya

        1. It will take a couple of weeks sir. We prioritise the ones that need action first. Vidya

  4. Anandkumar Mehta

    Excellent follow up review article on your original reco. This was my first purchase based on PI reco in 2021. A few questions: a) What happens to the assets owned by IndiGrid after the contract term of 35 years? b) What, in your opinion, is the rationale for investing in Solar and BESS (less stable than trans. infra from cashflow perspective) ? c) How should one think about the instrument in terms of capital appreciation (apart from the stable distribution yield), in other words – are there any triggers for the asset to be re-rated by the market?

    1. In most cases, the contracts are renewed with some change in terms. On Solar and BESS – we would view them as currently volatile but highly scalable asse growth options. Both have singificant scope for efficiency thus making their future better. Also, such diversification is inevitable and in line with a nation’s overall vision. Asset re-rating cannot be ruled out in BESS.

  5. sbr bluestack

    Thanks Vidya for an insightful article. This is surely an underrated quasi stock.

    In terms of personal asset allocation, where this stock would fit? Because of its mandatory dividend distribution, can we consider this as high risk income generation and add it as a small part under long term debt allocation (> 5 years)? Or do you think, this should still be considered as equity.

    Thanks again!

    1. Yes you can consider it as the former for income purpose with higher risk than regular debt.

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