Member Info for parkside13

Yup agree. Their comes and engagement is not great but the deal they could pull off to, presumably, manage several 000MW of coal power could be very enhancing. So long as they don't issue shares, at least not here. And why would they? Presumably it is an asset management contract so little or no capital required. It's very cheap here. Very!

The dividend proposed is not an 8% yield. Do your homework! It equates to about a 2.4% dividend yield at 15% of earnings. The free cash yield is a lot higher - obviously - and could support a much higher yield in the absence of new "stuff" to invest in. That might be where you get your 8% yield. Anyhow, I'm not basing my annoyance on proposed dividend yield, I'm basing it on late results, lack of shareholder engagement and as a result a pitiful share price relative to intrinsic value. They should be expressing a willingness to buy back shares not **** away our capital on solar projects that have a palpably lower IRR. Even if they expressed a willingness to buy back shares that might help.

I'm afraid I disagree with you on communication and also on delivery. Their communication is woeful; even their institutional investors are getting fed up. For example they are presenting in August this year when half the City is away on holiday. What is the point of that. The reason is their results are late. They invested £20m of your equity in solar projects generating a 14% levered IRR. They would have generated a far better return for us (the shareholders) by buying back their own equity producing a much better (and less risky) IRR. So they are chasing scale not shareholder value - a very bad thing. Yes they can put up a good project but simply moving to a main market listing wont redress the woeful underperformance of their shares unless they communicate better and start focussing on shareholder value. Seems to be same old, same old, from another Indian Company.

That note came out Friday and complements notes produced by Cantors which have roughly the same price target. Trouble is none of the institutions are subscribing to the views. The Company is not doing enough to engage with existing and potential new investors, the results, for whatever reason, are two months late and India, after Essar and Greenko, is a hard sell especially when it is something as polluting as coal - number of the non SRI investors wont touch coal. So whilst this is clearly at a big discount to intrinsic value it will stay there unless OPG puts in more effort, engages more and doesn't do road shows when every City investor is away on holiday!! All very well to say "more shares for all of us" but at the end of the day we want to see OPG trade at closer to its intrinsic value. The management however, don't seem to ascribe to this!

Don't know re baseload. If it is like the UK then the days of the big transmission connected assets are probably over or will be soon in favour of more flexible generation - OCGT/aeroderivative gas, batteries and other storage etc. But India might have a more base load type load profile given its relative immaturity. Lot less renewables on system too particularly solar and so maybe the demand profile is flatter. But in truth I don't know.

Well my average is probably around 72p so not a horror but its quite a few shares so nominally feeling a bit cross. I just wish they would wake up to the fact that swanning over here once a year, putting out somewhat ill phrased RNS's is not going to magically close the gap to intrinsic value. Not will, for that matter, going to the main market although probably shareholder protections there are higher or better which should give some comfort. They need to work at it far more. To substantially increase coverage, widen the shareholder base and present more often. I think they are good at delivering operationally, to time and budget, but less good at the communicationy part of the piece. Anyhow, like you, I am a buyer rather than seller so I will stop moaning now and wait for the magic to happen!

Hiya (and great name!) Yes that is all true and well made. The £45m will be an EV and so I guess they are funding using a small piece of equity and some (you'd hope) non recourse debt (if that exists in India)? So yes consolidated debt will increase but I'd hope the solar piece is non recourse to the Group. The debt repayment is an IRR of 12% and so the solar IRR needs to be more than that to enhance ROE. Trouble is I doubt if solar IRRs are that high, even in India so my suspicion is this dilutes our existing ROE. But as you say maybe the greenness and probable EPS growth is a price worth paying. I guess I just wish the damn shares would respond!!

And I'd add that I would have quite liked that solar cash returned to me. I have, in effect, lent them my capital to build these coal plants and now they are operating its payback time. I really don't want my capital being hosed on highly priced solar assets thank you very much.

Again not a brilliantly drafted RNS. Why say it was competitive auction! What does that add apart from we have just paid top dollar (Rupee) for a bunch of solar assets where the output is absolutely dwarfed by the coal output - capacity factor of maybe 20% on 50 odd MW v 90% odd for 750 MW of coal. Irrelevant. I think they are diluting their ROE by investing here that unless they are using a monumental amount of leverage.

All true and McQuarie are taking in broker ship with new note (I guess) so should be 100% more coverage than at present. Trouble is all known about and it is down to the execs to actually sell their story, something that they haven't done well.

I think that's the point I've made before. They simply don't understand as a Board, that they need to work harder at losing the (yawning) gap to intrinsic value. They swan across once a year, give a rather uninspiring presentation, then back to India with narely a reaction from the shares. Now they think a main mkt (and very expensive) listing will magically close the gap! Maybe but the execs need to work much harder to communicate the story too.

Ha! Minority gloat read float. Certainly not a minority gloat!!

Investor relations! Yes ok point taken but this company is rather mirroring my two previous Indian experiences one of which (luckily) ended well no thanks to the Board and the other badly. However same pattern - minority gloat, weak chairman, Indian family control not caring (really) about the minority float and all in all poor corporate governance and information flow.

Because I know the IR guys read it and it might enervate them to perhaps suggest a more intense shareholder engagement than appears to be in place now. They are simply not getting the story across.

I wonder if this pile of excrement might actually ever go up? Goes back to what I was saying: no communication, news flow or anything really. Typical Indian company.

Well maybe I was a bit unfair on the strategy but in essence OPG is two projects which are probably undervalued depending on long term coal prices, output and PPA prices. The trouble is they have floated a minority, the family control it and in the back of Essar, Greenko etc al the governance is perceived suspect so that engrains a discount in the value of the equity. I'm a holder so not entirely negative but I await their presentation to see if it improves on previous ones (which weren't impressive). They have given institutional presentations which I've been to and they are, to lay investors, gobbledygook!!

It's very frustrating! The trouble is this Board and the family are not shareholder friendly in the sense that they don't feel a great need to inform and update. They drift over here once a year, give a generally poor presentation (which I've attended) then off back home. There is no great driver or strategy here; no articulation of how much free cash will be allocated as dividend, how much to accelerate growth and indeed what that growth might be (other than some vague talk around renewables where they are late to game. So typical Indian governance a la Essar and Greenko. I'm in, wish I wasn't but hope that someone (chairman) grabs the nettle. Same old same old until then.

Chaps, just made an investment in OPG. I presented with the FD a couple of years ago and was impressed. The commissioning of the Gujurat plant is undoubtedly good news, global coal is cheap and OPG's free cash flow to equity is substantial. This allows dividends, increased capex in new plant whilst managing a sound balance sheet. All good and the shares are, extant some unforeseen event, very undervalued.

Hi no they don't trade the shares, they are generally long term investors. They intimated they'd lean in the 12p revenue reserve a bit but I doubt whether they'd seek to maintain last year's dividend given the terrible capital performance and the near £75m of debt the trust currently has. Like to think they are well away from their gearing covenants but they should preserve some capital. So I suspect dividend will be cut. I hold a lot of this. It's not particularly well managed but it's geared into geared sector so should go up a fair bit if the underlying stocks rally.

Just bought a large position. Miners cheap, this fund cheaper and decent revenue reserve. Suspect they'll cut but might depend on BHP and Rio's dividends, if any.