fast growing Indian company operates and develops power plants in India..Cheap at 70p after floating at 60p on 30th May.

Maybe worth showing this again. The dark grey block is the one being featured on Saturday:

Thanks for the heads up. Have been holding for a while.

Here we go:

Article link

Ahmedabad: OPGS Power Gujarat Pvt. Ltd, a subsidiary of UK-based OPG Power Ventures Plc, will commission its 300 MW coal-fired power plant on Saturday at Bhadreswar in Kutch district of Gujarat, managing director and chief executive officer Arvind Gupta said in a press conference on Thursday. Work on the project, located in a special economic zone developed by the Adani group in Mundra, started three years ago and around 300 acre land was acquired from private owners in Kutch.


PS: Somebody bought 50,000 shares at 4:45pm today.
Article timed 5:15pm UK time (presumably press conference finished before that)

Press images from yesterday's event -

So Gujarat is now up and running and the share price has barely reacted. Looks dirt cheap to me as revenue could double next year.

Cantor Fitzgerald Buy 85.25 85.25 - 130.00 Initiates/Starts

Nice spot skinny!

Saudi money heading for India. Presumably other such funds that follow will include stakes in electricity supply and other key infrastructure areas..

Saudi Gazette

From this morning's Results statement:

Mr M C Gupta, Chairman stated: "The team at OPG have achieved much over the last five years and have delivered compound earnings growth of over 40% per annum over the last three years. OPG is now set to achieve a new dimension as we start to generate cash flows from a significantly expanded, multi-locational asset base. I'm confident that we will set out on the dividend path following the successful and sustainable operation of this new capacity and am also excited by management's pursuit of continued profitable growth. This Company now represents scale, robustness and growth."

BEST AIM COMPANY AWARDS 2015


Shortlisted for
INTERNATIONAL COMPANY OF THE YEAR


• Fusionex International (FXI)

• Hutchison China Meditech (HCM)

• OPG Power Ventures (OPG)

• Somero Enterprises (SOM)

US-based concrete levelling machinery supplier Somero Enterprises Inc and Indian power producer OPG Power Ventures were on the shortlist last year and both have made further progress since then. Somero continues to grow its profit and revenues internationally and this looks set to continue. OPG's revenues were flat last year, but additional capacity means that generation output has grown by one-third in the three months to June 2015 compared with one year earlier but the tariff price has fallen by around 5%.

BEST GUESS: Somero

Another good set of results and all going to plan, quite remarkable their achievements. Now as stated above, the cash is really going to start to have an impact. Continue to think this is way undervalued with P/E estimate for 2016 somewhere around 12.

Good trading update with substantial increases in volume. Not long before the additional is onstream too in January. Surely way undervalued, but share price stubbornly not reflecting the big increases in revenue and eps expected in 2016.

Cantor reiterating buy, tp 134p

Better start to today on top of yesterday's 9% rise.

"..UK listed OPG Power Ventures plc will add to its existing investment in India by £2.9 billion to a total of £3.4 billion, creating around 100 UK jobs over next few years. The investment will create 4200 MW of new power capacity in India, of which 1000 MW will be solar power and 3200 MW will be thermal and renewable power in Tamil Nadu.."

source: indianexpress.com

As usual in such announcements, most of the list is merely a pulling together of information already known. But nice to see OPG at the top of the list. The figures are ridiculously overstated - need taking with a gigantic bucketful of salt! - but will nevertheless prompt interest in OPG worldwide.

IC today:

Shares in Indian energy generators OPG Power Ventures (OPG) and Mytrah Energy (MYT) have fallen significantly in the past six months, despite the country's persistent chasm between supply and demand. Wind power generator Mytrah recently said it had suffered this year as a result of a less windy start to the monsoon season, leading to analysts downgrading full-year expectations.

Shares in Mytrah have fallen by a quarter in the past 12 months, while returns on an absolute-return basis are down 82 per cent in the past three years. This is despite poor energy infrastructure resulting in a chronic shortage of power in India. The International Energy Agency has estimated that Indian primary energy demand would more than double between 2013 and 2030 to more than 1,426m tonnes of oil equivalent (Mtoe).

Mytrah has built nine turbines so far this year, adding 50.2 gigawatts (GW) of power. This brings overall capacity to 578 megawatts (MW). Management expects to enter the 2016 windy season with 743MW of capacity. However, it has come up against one of the main risks of renewable energy this year - the unpredictability of the weather. Analysts at Investec Securities downgraded their forecasts for this year's cash profits by more than a quarter to €67m (£47m).

While shares in OPG Power Ventures have fallen back over the past year, the electricity provider has generated an 82 per cent increase in returns on a total return basis. In October, its Chennai plant entered into three-year, agreed volume contracts directly with industrial customers for 257MW of capacity. Industrial contracts - which are longer than the nationwide average - now represent 62 per cent of sales for this plant.

While the Indian government has submitted proposals to tackle climate change rather than cut emissions in absolute terms, it has opted to cut emissions intensity - the amount of carbon pollution per unit of gross domestic product - by around a third by 2030 from 2005 levels. This means coal will continue to play an important part in India's energy mix and so be beneficial for OPG.

IC VIEW:
Mytrah's heavy debt - $519m (£341m) compared with a market cap of £125 at the end of June - is a concern and the shares are on 45 times Bloomberg consensus earnings. This makes us more bullish on OPG, whose 750MW target capacity is expected to be profitable by January next year, albeit four months later than chief financial officer V Narayan Swami told us in June. Its 11 times Bloomberg consensus earnings price tag makes it a buy.

and IC's view today a week later:


Investors Chronicle today:

HAS EM POWER LOST ITS SPARK?

Sector Focus

It's well known that many emerging market economies are held back by perpetual energy deficits. So it's little wonder that western companies have been rushing in to fill the gap. Whether it is conventional electricity generation in India, or the provision of temporary power sources in parts of the Middle East and Africa, there are UK-listed companies with an interest. With intertwined structural levers linked to population growth and rapid industrialisation, it's easy to appreciate the investment case - but it is far from clear whether selling power in these markets is a sure-fire way to generate regular returns.

The performance of UK power providers has been hit by geopolitical volatility, in addition to a marked contraction in economic growth in several emerging market countries. So it would be justifiable to ask whether the opportunities on offer still outweigh the potential pitfalls.

Black is the new black

India seems the obvious place to start. Prime Minister Narendra Modi has targeted uninterrupted power supply to all of India's 1.3bn population by 2019. Coal will play a big part in achieving this. What's more, Mr Modi is looking to increase private participation in the sector. Coal India currently accounts for around 80 per cent of coal production in the country and is 80 per cent owned by the government. However, authorities in Delhi recently approved the sale of a 10 per cent stake in the state-controlled entity, potentially generating $3.2bn (£2.1bn) for government coffers. Things have not been running smoothly at Coal India, with bulk production of the black stuff failing to keep pace with nationwide demand. The country's industries are reliant on imports, which now account for 18 per cent of total electricity generation - hardly an ideal scenario for a nascent economic superpower.

Operating against this backdrop is electricity generator OPG Power Ventures (OPG). OPG operates coal-fired plants in Chennai and Gujarat, which currently have a combined capacity of 600 megawatts (MW). By January 2016, management expects this to increase to 750MW. The UK group's capacity expansion has been impressive; increasing year-on-year generation by more than 50 per cent at its half-year mark. Industrial customers now make up 62 per cent of its total sales, but what makes OPG different to many other coal-fired power generators in India is that its fuel mix is split around 70/30 between Indonesian and Indian coal. This means it has been less affected by domestic coal shortages in India.


Mytrah's leveraged play on a green India

Although carbon predominates, renewable energy still has an important part to play in India's growth story. In its union budget for 2015-16 the Indian government set a target to install 60 gigawatts (GW) of wind power capacity and 100GW of solar power capacity by 2022 - more than six times the current installed capacities of around 22GW and 3GW, respectively.

Following the sale of Greenko (GKO) to the Singapore government earlier this month, the remaining UK-listed company in the Indian green energy space is Mytrah Energy (MYT). The wind power provider has been steadily building up its capacity, which now stands at 578MW, with plans to reach 743MW of capacity by the time the 2016 windy season comes around. But this rapid expansion has come at a price. Net debt stands at an unwieldy $519m. It was up a fifth during the first half of Mytrah's financial year, effectively tipping the company into negative earnings. Although Mytrah's high degree of leverage is hardly helping the shares re-rate, it could eventually translate into strong earnings growth, assuming capital has been allocated wisely.


Rapid capital expansion and risk profiles

"There is an element of risk with all these companies because they're developing quite quickly," says Cantor Fitzgerald analyst Adam Forsyth. "That sometimes holds back profitability because a lot of the time cash is being put into new products." However, this is absolutely what renewable energy companies should be doing, he adds. Of course, it is also important to note that both OPG and Mytrah should reap the rewards of this investment and throw off a lot of cash once their assets are fully operational - but investors may require patience.

Shares in both OPG and Mytrah have suffered, with the latter falling by 40 per cent over the past six months. This may have something to do with investor sentiment towards emerging markets, which has soured on continued US dollar strength. Yet it is worth remembering that India's GDP is forecast to grow 7.7 per cent in 2015, compared with Chinese forecast growth of 6.9 per cent.

Plugging the gap

With the intensified strain on power transmission in some emerging economies, a number of temporary power providers are now selling energy straight into national grids. Aggreko (AGK) is the most prominent UK-listed company in this field. Recent contract wins included the provision of 95MW of natural gas generation to Myanmar during the drier summer months, since around 70 per cent of the country's energy supply comes via hydropower. Contracts can also last several years, providing enhanced revenue visibility. For example, Aggreko first set up its gas-fired generation plant in the Ivory Coast in 2010, initially producing around 70MW. That has subsequently been stepped up to 200MW and Aggreko recently had its contract extended by another three years.


Geopolitics and other power plays

Geopolitical turmoil in Libya and Yemen has derailed operations for many western companies, including Aggreko and APR Energy (APR). The disruption was particularly acute for APR Energy. After failing to ratify its contracts with the Libyan government, APR was forced to withdraw its assets from the country. Management followed a similar course of action in Yemen earlier this year, due to ongoing security concerns.

While events have been out of the company's hands, the financial consequences have been dire. The company has so far booked a combined total of almost $775m in non-cash impairments and asset writedowns. In June, management announced that long contract lead times and delays to contract negotiations would also dampen profits for the current year. However, there may be light at the end of the tunnel for investors. APR is currently in discussions with a consortium, which includes Albright Capital Management - a private equity group led by former US Secretary of State Madeleine Albright - over a possible takeover. This has triggered a slight resurgence in the shares.


Favourites: Despite the country's environmental targets, coal will remain a big part of India's energy mix for the foreseeable future. Increasing the proportion of industrial customers to its Chennai plant, means OPG will have greater revenue visibility. In its most recent trading update, management said the price of imported coal was 11 per cent lower during the first half, compared with last year. What's more, at the time of the group's 2015 results in June, chief executive V Narayan Swami told us that OPG intends to begin paying a dividend at the 2017 financial year-end. The shares are trading on just 11 times Bloomberg consensus earnings. Considering the growth potential and India's high demand for power, we think this represents value. Buy.

Outsiders: Aggreko has endured torrid trading conditions, with a share price down 39 per cent on our February sell tip. While the group has obviously faced some difficulties as a result of its operations in Yemen, the power provider's problems aren't restricted to security issues. A slowdown in oil and gas markets has been the main factor hampering performance. Management is guiding towards full-year pre-tax profit of between £250m and £270m, compared with £289m in 2014. The shares are trading on 14 times forward earnings. And although management has restructured the group and plans to find £80m in cost savings by 2017, we think recovery will not arrive any time soon. Sell.

IC VIEW: As GDP growth depends on securing enough energy to power the industrialisation taking place within many emerging markets, the demand for services offered by Mytrah, OPG et al is undoubtedly there. So while the jury is still out as to when the temporary power providers will be able to overcome their current end-market troubles, investments within this sector, certainly for OPG and Mytrah, should be seen as long-term - there's no quick power fix.


Broker's view

Aggreko's recent third-quarter (Q3) results offered a positive message, with underlying revenue growth for the second half of 2015 expected to be -2 per cent, compared with -7 per cent in Q3 2015. The acceleration in Q4 can be explained by a couple of one-offs. Full-year pre-tax profit is now expected to be at the bottom of the £250m-£270m range; however this is above company-provided consensus of £249.1m. Despite the incrementally positive message on the full year, the market remains challenging. We remain neutral, with the relatively attractive valuation - 14.4 times 2016 earnings - offset by the strong competition and weaker emerging market outlook.

While we believe there is a large structural growth opportunity in the provision of temporary power, particularly in emerging markets, which lack the necessary infrastructure to meet a growing demand for electricity, we remain cautious on Aggreko in the short term. The reduced volumes in commodities remain a drag.

We base our target price on a discounted cash flow (DCF) methodology, using a weighted average cost of capital (WACC) of 8 per cent and a terminal growth rate of 2 per cent from 2023. We have reduced our DCF-based price target by 12 per cent to 1,150p to reflect changes to our estimates. Upside risks include stronger local business performance if the macroeconomic environment improves; an acceleration in the pace of contract wins in power projects, which would make our growth assumptions too low; and finally the announcement of further capital returns. Downside risks include a deterioration in macroeconomic conditions, particularly emerging market growth, which could lead to lower demand for temporary power in both local and power projects; a more competitive market, especially given the current weak markets and a loss of a major power projects contract.

Robert Plant is an analyst at JPMorgan Cazenove
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By Emma Powell,
27 November 2015
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Mark Slater has been buying OPG shares..

"..The stock he has been buying more of recently is OPG Power Ventures, a £225 million market cap company that is primarily focused on running power plants in India. The company made a profit of £21.65 million in the year to the end of March 2015, on a turnover of just less than £100 million.

Slater commented, ‘this is a stock that has been hit because of negativity towards emerging markets and coal, but we don’t think it is justified. It is a company that is delivering on expectations, it is doing what it should be doing.’

(What Investment magazine today)


full article link

OPG among winners in two tenders for solar power projects:

http://economictimes.indiatimes.com/industry/energy/power/low-radiation-pushes-up-tariffs-in-jharkhand-solar-project-auction/articleshow/51458916.cms


".. The biggest winner of the auction conducted by the Jharkhand government was ReNew Solar Power, which was awarded rights to set up 522 MW of projects. Other major winners were Suzlon Energy (175 MW), SunEdison Solar Power (150 MW), OPG Power Generation (124 MW), ACME Solar Holding (75 MW) and Adani Green Power (50 MW)... "

also;

http://indiapowertrading.info/indian-developers-score-big-1-2-gw-karnataka-solar-power-tender/


Indian developers score big in 1.2 GW Karnataka solar power tender
Posted on March 8, 2016


Hero Future Energies, part of the Hero Group, won 180 MW capacity at the lowest bid of Rs 4.69/kWh. The company secured projects with tariffs of up to 4.86/kWh. When compared to the latest data complied by the Ministry of New and Renewable Energy, this tariff is the second-lowest tariff every quoted in India. In January this year, a subsidiary of Finland-based Fortum won 70 MW solar power project in Rajasthan through a tender launched by NTPC. The company quoted record-low tariff of Rs 4.34/kWh.

ReNew Power Ventures also secured 180 MW under the Karnataka solar power tender with bids between Rs 4.76/kWh and Rs 5.05/kWh. Some of the other major project developers that won projects under the tender include Essel Green (65 MW), OPG Power (62 MW), and Mytrah Energy (45 MW). The highest successful bid placed under the tender was Rs 5.81/kWh.

Anyone still left in here ?

Announced dividend policy with full year results and look cheap as chips to me.

still in but India and coal fired generation will keep this depressed I feel.