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Topic: NHPC

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Hitesh Shah
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Posted: 01/Aug/2009 at 11:20pm

Originally posted by arunshah2k

Now Oil India IPO also opens around 7 Sep.

Start a new topic Big%20smile

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TCSer
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Posted: 01/Aug/2009 at 1:09am

NHPC was supposed to come out with an ipo @Rs 18 in November 08 but with an improvement in sentiments even the Govt has become very greedy .

NHPC ipo should sail thru thanks to positive environment but hope it does not cracks significantly on listing.

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smartcat
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Posted: 01/Aug/2009 at 1:59am

Oh, a small correction. JP Associates has a 60% marketshare (current projects) in EPC for hydro power. In this business, JP works on a profit margin of 20% - which is brilliant margins for a EPC contractor. The other big player is HCC.

And it looks like JP will build a big chunk of NHPC's plants. Here is a list of recently executed EPC contracts

http://www.jilindia.com/civilengineering_commissioned.htm.

One can play 'match the following' game of NHPC's projects with that of JPA -

http://www.nhpcindia.com/Projects/Project_index.aspx

Now I really wish NHPC does well !

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chimak10
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Posted: 02/Aug/2009 at 12:04pm

What are the things JP don't do in infra space.

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chimak10
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Posted: 02/Aug/2009 at 12:13pm

From Shri Shri S. P. Tulsianjee...........
So, if we assume that book will get discovered at Rs. 36 per share, (which is most likely) issue size will be of Rs. 6,040 crore, of which, Rs. 2013 crore will go to government and Rs. 4,025 crore will be retained by the company to meet its capex of Rs. 14,014 crore. Part of this will be financed by debt of Rs. 9,176 crore.

So if they take this new debt and plus there old debt of (Rs. 14,900 cr.) that's a lot of debt to service for the company close to 23,000 cr........how does this work ( they must take this kind of loan in parts right ) and what kind of interset rate this kind of PSU company pay??? anyone have any idea.....

The PAT margin will go down to what level...hmm

At upper band of the price of 36 the stock with EPS of 1.1 Rs. quotes @ 33 PE

Edited by chimak10 - 02/Aug/2009 at 12:17pm

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smartcat
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Posted: 02/Aug/2009 at 12:49pm

2:1 debt/equity ratio is quite good for a power company. Majority of private players work on 3: 1 ratio.

Because of the huge (almost assured) cash flow, debt servicing should be easy.

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TCSer
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Posted: 02/Aug/2009 at 9:06pm

NHPC for all its noise is an expensive option @PE of 33 so investors beware NHPC can be easily available at a lower price in near future.

Besides Its CMD rosy projection on TV of giving 6 projects to nation totaling 220 MW needs to be taken with a sackful of salt (not just pinch).Be very careful.NHPC unlike JP & otehr private players in hydro like Bhilwara energy has an extremely poor execution record

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Vivek Sukhani
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Joined: 23/Jul/2006
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Posted: 02/Aug/2009 at 12:15pm

Originally posted by TCSer

NHPC for all its noise is an expensive option @PE of 33 so investors beware NHPC can be easily available at a lower price in near future.

Besides Its CMD rosy projection on TV of giving 6 projects to nation totaling 220 MW needs to be taken with a sackful of salt (not just pinch).Be very careful.NHPC unlike JP & otehr private players in hydro like Bhilwara energy has an extremely poor execution record

I would rather take your argument with rake-ful of salt.

Jai Guru!!!

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