Anyone else get burnt with that other Indian Energy Company 'ESSAR ENERGY', which conveniently forced investors to sell their shares back to them when they were available on the cheap, and in so doing 'robbed' investors of any future upside whilst making the 'Chuckle Brothers' millions!!!!
OPG signs new power deal: OPG Power Ventures [LON:OPG] a power company based in India and listed in London, offers U.K. investors the opportunity to benefit from power shortages in India. The Aim-listed company secured a deal last month that underpins future revenues and profits. The utility company has agreed to sell its power output in Chennai to the Tamil Nadu Generation and Distribution Corporation at 5.50 rupees per kilowatt hour until 30 September 2015, a similar level to existing profitable deals. The full year results announced in May underlined the investment case. Pretax profits jumped 70% to £17.95 million, on revenues up 78% to £98.8 million during the year ended March. The company is growing quickly through a vast power plant construction project. The main input cost is the price of coal, which is currently falling. The final issue is currency risk around the Indian rupee, which has now stabilised, after sharp falls last year. That said, the company continues to deliver and the shares are up 13% on our initial recommendation (Buy, 94p, 22 May) and we retain that recommendation. OPG Power Ventures at 107p. Questor Says “Buy”.
I am not invested here at present, but have OPG on my watchlist and currently doing more indepth research before making a decision whether to invest or not. After last weeks what appeared to be a possible meltdown on the markets generally I am understandably a little more, no make that a lot more nervous.
This is one of Robbie Burns (The Naked Trader) holdings, which is always encouraging.
AIM-listed, Indian power group OPG Power Ventures (LON:OPG) has reached the inflection point in its development. That’s the view of City firm Shore Capital, which repeated its ‘buy’ rating following the company’s third quarter update. In it, OPG revealed its two latest electricity plants are on time and on budget, adding that its full-year results look set to meet the City’s forecasts. Shore analyst Robin Speakman said the update confirmed OPG’s development is going to plan, while the underlying business performance is around 20% ahead of his initial expectations. He points out that revenues are set to rise from March 2013 to March 2016 by 5.6 times, with adjusted pre-tax profits multiplying by 6.6. “Management has delivered on all OPG’s stated strategic objectives. The mature valuation for the company is now coming into focus based on high visibility,” Speakman said. “We point investors towards OPG’s high returns on capital (return on equity rising to 50% in FY2016F) and reducing valuation risk in cash flow analysis.” Investors listened to the ‘buy’ advice, sending the share price up 4% to 81.8p.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.