Opg Power Ventures Share Discussion Threads

[jonevered] 26/4/2017 09:25

What is BSE?

[azalea] 26/4/2017 08:22

BSE tops 30,000 for the first time.

[azalea] 25/4/2017 08:32

India's Finance Minister Arun Jaitley, states that 7-8% growth in GDP is absolutely normal, as Modi's Government policies make their mark.
BSE continues to skirt 29,000 level.

[azalea] 24/4/2017 08:42

chalky
Thank you. Its not often the IC reports on a company as being cheap, but all the ingredients are there to produce a very significant rise in the share price in FY2018,following a good FY2017 due to be reported end of this July. A maiden annual dividend this year followed by a rise in 2018, will in itself attract analysts and investors attention.

[chalky] 22/4/2017 10:41

Aim top 100 growth stocksOpg had a good first half, revenue doubled in the 6 months to end sept, lifting cash profits by 81 per cent to £42.1 million. In the 3rd quarter update, generation was up 53per cent to 3.4 ban units for 9 months while debt repayment schedule for Gujarat plant which was fully commissioned in Feb was extended by 10yrs resulting in a £67 mill reduction in principal payments between 2017 and 2021 . Coal purchases for financial year 2017 had been completed and an estimated decline in coal prices for 2017 and 2018. The new debt schedule will give the company improved balance sheet flexibility. Electricity demand and india growth are both beneficial to company growth prospects. Meanwhile trading at 8 times forecast full year earnings Opg still looks cheap. Buy. Ic comment.

[azalea] 22/4/2017 08:26

chalky
When did the IC make the comment you refer to? Are you able to give its reasons for concluding that OPG is "dirt cheap".

[jeffian] 21/4/2017 16:12

Sorry, it was a rather feeble jibe at IC, which has a somewhat patchy record on its tips.

[chalky] 21/4/2017 15:13

yes and no depends on how you take it

[jeffian] 21/4/2017 14:11

Is that a good thing?!

[chalky] 21/4/2017 14:08

Even investors chronicle reckon these are dirt cheap

[andycapp1] 15/4/2017 18:00

I'm advocating using the cash they are piling into solar to buy back their equity. It gives a better return. And so it isn't dead money. If you can back equity with an intrinsic value of 100p for 50p it is enhancing.

[eastbourne1982] 13/4/2017 10:32

I don't hold these yet however I'd rather the company reduced it's debt pile than buy back shares, buying back shares is often dead money, reducing debt isn't.

[ballychan] 13/4/2017 10:21

Solar gives them revenue/profit.Buy back gives no money.If you have the II's ear, then maybe ask for a position on OPGs board. Your knowledge sounds invaluable.

[andycapp1] 13/4/2017 08:39

That they claim institutions don't want them to is BS! I've spoken to a number and they will want whatever is sensible and makes them money! They are not open to it at all even though it obviously makes sense. That is why this stock is not investable.

[ballychan] 12/4/2017 16:55

Andy I think you've mentioned this maybe once or twice!At the investor show Ajay advised they looked into buy backs but they were advised against it due to liquidity concerns. Plus if they wanted to buy back they should be prepared to buy 5%.Institutional Investors don't want them to do that and want them to continue using cash to grow revenue/profits.You may well have done the maths and determined it's better value to buy their equity but clearly the Board and IIs don't agree with you. There's little point in you repeating the same info on this chat, I suggest you speak to Investor relations, Ajay is very open and he can give you better feedback.

[andycapp1] 12/4/2017 11:17

Flowerhead utter tosh again. If Gupta wants a decent return why is he not investing in his own equity? I simply do not understand it other than he has some philosophical problem with shrinking OPG's equity base. But if that is the problem then that shows poor capital discipline indeed. As someone has pointed out investing in solar other than to flip to an equity partner dilutes OPG's ROCE. It has very little impact on earnings - the driver of dividends - and the return compares very poorly to investing in his own equity. I keep arguing this and you seem oblivious to the case rather arguing blithely that increasing revenues will somehow drive dividends which will somehow close the gap to intrinsic value. Trust me it wont as this company has not delivered. The only thing that will imbue any confidence will be for the Company to start investing in its own equity. If it does Mr Gupta might make a few quid.

[azalea] 12/4/2017 09:43

With OPG revenues, profits, earnings and dividends continuing to rise, analysts will continue to see the share price as a buy. Mr Gupta with a stake of over 50% will be keen to boost his dividend income every year, which in turn should be reflected in the share price

[piedro] 12/4/2017 08:10

Supreme Court nixes compensatory tariff for Tata Power, Adani
CHENNAI, APRIL 11:
Tata Power, which owns the 4,000 MW mega power project through its subsidiary, Coastal Gujarat Power Ltd, is staring at a loss of Rs. 47,500 crore over the 25-year power purchase agreement period of the project, on account of today’s Supreme Court order. .... ....

[chalky] 11/4/2017 16:12

net income after tax -profits
2009 5.33 mill
2010 4.02
2011 8.75
2012 0.22
2013 8.83
2014 14.56
2015 17.29
2016 18.57
2017 30+ ?
by opg share valuation and retained profits when profits reach 60-100 million +
dividend payouts the share price should be between 5-10 p
obviously there is an inverse correlation,the more profits it makes the more the
share price goes down. I find this a rather strange way not to make money.

[big jim5] 06/4/2017 14:05

gscrawler - the reason they have to own a chunk of the business is to satisfy the Indian group captive legislation. Some states interpret this as having to have a defined share of votes, some (like Gujarat) have decided it means a share of the share capital. OPG's clients have in the past been given voting shares of little capital value, but the way the rules are now being interpreted in Gujarat mean a different structure is required.

[azalea] 06/4/2017 12:25

No one controls the weather. Currency death of a loved one, whatever does that mean? GST will come into effect this summer. First annual dividend, Lower coal prices, rising earnings. PLF and revenues increased capacity reported end of July and more of the same in FY 2018n, should put a shine on the share price

[gscrawler] 06/4/2017 11:58

Why on earth would someone take a chunk of a business unless it is for economical interest. Of course it is going to affect the results but will ne covered by the rumped up production. The reason why OPG thinks this is not going to affect the results:

"Company's reported earnings per share in the near term, whilst OPG Gujarat continues to ramp up. Thereafter, management expect the impact upon the Company's reported earnings per share to be neutral."

We are constantly being drip-fed information about their failures but it looks like their problems seem to run way deeper than initially thought. In december they told is issues with India's monetary reform, currency death of a loved personality, weather etc. Let's see what else is there to come.

[big jim5] 06/4/2017 11:16

It's easy to do. You just align all the capital so that all shares have the same votes and capital entitlement, and then just suck earnings out of the subsidiary up to the top company via appropriately priced shareholder loans. The release is quite clear I think that the minority will not be having any substantive economic interest in the plant. It's technical in nature, and not something to be concerned about.

[ballychan] 06/4/2017 10:29

They're not giving away 26% of the value of Gujarat plants, what they said is "Captive Users should own at least 26% of OPG Gujarat's equity share capital".This isn't a new initiative, it's been the case since they listed in May 2008 (also mentioned in the RNS)This doesn't result in any further dilution, in fact it "results in an increase in Captives Users' non-controlling interest in OPG Gujarat, is not expected to have an impact on the consolidated results after tax or the consolidated cashflows of OPG and its subsidiaries and is expected to lead to a marginal increase in the Company's reported earnings per share in the near term"

[azalea] 06/4/2017 08:16

Read RNS 5972B dated 5/4/2017