Earlier I have recommended a BUY on JSW energy @ Rs.115 on 29 March 2010 .After touching a high of Rs.131.50/- ,now it came back to the previous level due to overall negative sentiment in the Market.I reiterate a BUY on this at current level. Try to catch it in lots due to extreme volatility in the market.
old report is reproduced below:
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JSW ENERGY Ltd is originally promoted by Sajjan Jindal
Group and Belgium based Tractebel S.A in 1994.Later
in 2001 Tractebel sold its stake and exited from
the company.It started commercial production of
power in the year 2000 and now it has two thermal
power plants with a total capacity of 860 MW.
These two plants are in vijayanagar ,Karnataka and
one of these can run with dual fuel(gas and coal)
and the other one is coal based.
It also have another 1200 MW capacity plant under
construction at Rathnagiri which is expected to fully
operational by October 2010.Another 1080 MW capacity
Lignite based plant is also under construction
(Raj West Power) in Barmer ,Rajastan which is expected
to fully commissioned in the beginning of 2011.
Some of the other plants-RWPL Phase 2 (270MW by 2013,)
Kutehr Hydro power project(240 MW by 2015),
Chhattisgarh (1320 MW by 2014)Maharastra
(3020 MW Coal based), West Bengal(1600 MW coal based),
Jharkhand(1620 MW) are also under various phase of
implementation. For most of the projects which are
going to be commissioned in near future ,company
already signed power purchase agreements .
To part finance its various projects company came
out with an IPO in December
2009 and collected 2143 crore. To ensure the supply
of coal for its various project company already signed
agreements with various agencies mainly with Sungai
Belati Coal, Indonesia. Company also formed another
joint venture company with Toshiba Corporation in the
name of Toshiba JSW Turbine and Generator Private
Limited.This company is meant for the design,
engineering, manufacture, assembly and sale of
sub-critical and super-critical steam turbines
and generators which will
range in capacity from 500 MW to 1,000 MW.
Major risk of project execution
is applicable to JSWEL as in the case of any
large project. But considering the facts that,
it already implemented and started production from
some of its plants and the experience got from it
along with the strength of the group gives
sufficient confidence in this company. Also ,
the commissioning of its various projects
in near future gives revenue
visibility which is a major positive for the company.
Investors expecting low risk with steady return can
BUY JSW Energy at current market price of Rs.115/-
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ANOTHER SE INVESTMENT IN MAKING:
ReplyDeleteARMAN FINANCIAL bse code 531179 seems better choice than Capital Trust.Atleast Arman Financial they have never gone into loss since past many years.I feel recent foray into MFI will bring the company into greater dimension and forthcomming higher NP, thereby, entering into different league like SE Investment.One can steal the opportunity at lower prices and have patience.Management is good and proven.It will go miles after miles.