I agree have held this a short while now. Slow and star day has seen a solid start. I am looking forward to the trading update. This should be the first one where some of the newer plants will count I believe. Please feel free to correct me if I am wrong. I expect a good update on power output and revenue generation. The bonus feature will be any news on further expansion of power output.
I agree that its not going to make 30% in a day like some shares on AIM. I do think it will make a nice stable steady rise to that though over the next few months. If you like boom and bust trading then this certainly isn't the 1. If you are an investor then I think its worth going for
Aclay47 - thanks for the explanation - no I have never been attracted enough to watch Forest Gump ! I share your view re. healthy company although I do not think it will make a quick fortune for us more steady as she goes.
Ha ha have you not seen Forest Gump then? Bubba Gumps boat was the only boat available to catch shrimps after a storm destroyed all the others and hence they had the market cornered and made a fortune! Most power stations in India have been struggling to get coal. However, OPG has not had this problem. It looks like a nice healthy company to sink a few quid into and make some heathy returns.
All looks good to me .....tiny spread...tipped in the papers....making a healthy profit ( to be increases by 50% this year....dividends soon. Has been producing power when Indias state owned stations are struggling due to lack of coal. Surely this company is to indias energy resources in the the same way Bubba Gump was to shrimps. A nice healthy rise since Sunday...where is the downside?
Looking at this tip reminds me of the schiesters/crooks that shafted so many ESSAR Energy shareholders that watched the share price fall and bought it back on the cheap, with the PIs thinking the same thing that OPG is tipped for, that being that India is so short on power supply it has to be a good punt!!!
MIDAS SHARE TIPS: Profits to surge as Indian generator OPG Power Ventures targets industry
By Joanne Hart, Financial Mail on Sunday
Published: 22:03, 20 June 2015 | Updated: 22:03, 20 June 2015
London-listed Indian companies have delivered a mixed stock market performance and some UK investors have been badly burned. However, OPG Power Ventures should prove a more worthwhile investment.
Its business is based in India but it is focused on a lucrative part of the energy market and dedicated to generating strong returns for shareholders. At 102½p, the stock should produce decent returns over the next few years.
India desperately needs more electricity. Demand is growing and state-owned energy companies cannot keep up. There are routine power cuts, hitting businesses and consumers daily. Over the past decade the Indian government has introduced a number of initiatives to improve the situation. In particular, it has invited the private sector to participate in the market.
OPG founder Arvind Gupta realised this was an opportunity not to be missed. Having spent his early career managing various divisions of OPG Enterprises, the family business, he established OPG Power Ventures as an independent firm in 2000 and listed it on AIM eight years later.
Most of that time has been spent building coal-fired power plants, initially in Tamil Nadu in the south, where Gupta has a strong network of contacts, and latterly in Gujarat in the north-east of the country. Planning permission has taken time and there have been construction delays, but this month the company revealed that it had completed plants in both regions with a total of 750 megawatts of capacity.
That would be enough to power more than half a million homes in the UK and many more than that in India, but OPG has chosen not to supply the domestic market. Instead, it is focusing exclusively on commercial and industrial customers because they have to pay more for electricity in India than consumers. OPG supplies most customers directly and makes sure it charges slightly less than they would pay to state-owned rivals. India’s need for electricity is so acute that OPG is allowed to undercut state-owned operators because it eases demand and still accounts for only a fraction of companies’ national or regional needs. Some of its electricity is even sold directly to state-owned distributors, such as the Tamil Nadu Generation and Distribution Company.
The group has also differentiated itself from rivals by installing sophisticated boilers at its power plants that are capable of generating electricity from local or imported coal. This matters because local coal releases less energy than imported coal and its supply is unreliable.
Gupta’s approach seems to be working. OPG this month unveiled a 21 per cent rise in pre-tax profits to £21.65million for the year to March 31 and said it hoped to start paying dividends relatively soon. Analysts expect profi
Yes I have accepted the fact that the world is not perfect and we just have to get on with life - fortunately I think I lived through probably the best period. It would be good as Halffull reports if they start doing renewables. Thanks for the tip on ARL although looks as though i have just missed a good buy in period of around the 28p level. Will do some more research though and will have to juggle some of my other shares to free up spare cash ( ISA)
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