Bluefield Solar Income Fund Ltd

Bluefield Solar Income Fund Ltd (LON: BSIF) is an FTSE All-Share listed UK-based investment company that focuses on the purchase and long-term management of a diverse portfolio of low-carbon assets, with a particular emphasis on solar assets.

The Company declared an interim dividend of 2.03 pence per ordinary share on 31 January 2022, with an ex-dividend date of 10 February 2022 and a payment date of 10 March 2022.

Rationale for Valuation – Watch at GBX 129.40

• Battery Storage Acquisition: Shaw-Energi Ltd has agreed on 31 January 2022 to sell the development rights, grid connection fees, and land leasehold of a ready-to-build 20 MW battery storage project for around £1.5 million to BSIF.
• Ukraine Tension: The mounting concern over the Russian invasion in Ukraine can continue to weigh on the equity market.
• Unfavourable Electricity Market Conditions: The Company's ability to pay its dividend can be impacted if there is a significant fundamental shift in electricity demand or supply.
• Gloomy Outlook: The year 2022 is expected to be the year of inflation, Central Bank tightening, and wage pressure. All these factors can hurt the corporate profits and equity markets.
• Technical Indicator: BSIF’s stock price is hovering around the upper Bollinger band, while its 14-day RSI (~71.83) reflects an overbought scenario.

H1 FY22 Results for the period ended on 31 December 2021 were released on 22 February 2022.

• NAV Update: The NAV per share jumped 6.2% year-on-year in H1 FY22.
• Increase in Operating Income: The Company's operating income had increased by 284% to £54.51 million in H1 FY22, from £14.19 million in H1 FY21.

One Year Share Price Chart

(Data Source: Refinitiv, Analysis by Kalkine Group) 

Conclusion

Please note markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Based on unfavourable electricity market conditions, Ukraine war crisis, macroeconomic risk, and bearish technical indicators, we have given a “WATCH” recommendation on Bluefield Solar Income Fund Ltd at the current market price of GBX 129.40 (as of 08 March 2022 at 08:48 AM GMT).  

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above.

Note 3: Dividend Yield may vary as per the stock price movement 

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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