Tuesday, February 2, 2016

ENERGY DEVELOPMENT COMPANY LTD :- ENERGY FOR PORTFOLIO

Dear friends,


  Today we are looking into Electric Utilities sector stock for medium to long term investments.



                  

ENERGY DEVELOPMENT COMPANY LTD







    Energy Development Company Limited (EDCL) was incorporated in the year 1995 to participate in the country's renewable energy development program for sustainable development. The Company simultaneously generates clean, green electricity from water and wind in its own power plants as well as develops energy and infrastructure projects for other developers. The company is forward-looking and technology-driven with rich experience and expertise across all disciplines of engineering, consulting, management and operational services. 

 

  The company currently has 19 MW of renewable energy capacity and has  291 MW of hydroelectric projects at various stages of development. The Company has targets to develop and own around 500 MW of new Hydro Electric Power Projects at an approximate capital outlay of Rs.7000-8000 crores in the next 5-7 years.

 

   The Company has set up its own zero-emission Hydro Electric and Wind Power Projects which contribute to meeting the increasing demand for clean energy as well as reduce our dependence on fossil-fuels.



Hydropower Generation is our core business area. The Company owns and operates a 9 MW Harangi Small Hydro-Electric Power Project in the district of Kodagu in Karnataka. The project has achieved 100 % availability factor each year since its commissioning in the year 1999. The Company acquired 7 MW Ullunkal Small Hydroelectric Power Project in the district of Pathanamthitta in Kerala which is fully operational now.



The company is augmenting its Power Generation capacities by a combination of organic growth, suitable acquisitions and allotments. The Company has targets to develop and own around 500 MW of new Hydro Electric Power Projects at an approximate capital outlay of Rs.7000-8000 crores in the next 5-7 years.



    Company presently has 291 MW of hydroelectric projects in its pipeline. 6 MW Harangi Extension Project is in advanced stage of construction and likely to be commissioned soon. In September, 2006 EDCL acquired 15 MW Karikkayam Project downstream of Ullunkal Hydroelectric Power Project, which is being implemented through Ayyappa Hydro Power Limited (AHPL), our 100% subsidiary Special Purpose Vehicle (SPV) company.



EDCL has received allotments for 270 MW of hydroelectric projects in the state of Arunachal Pradesh. The Company is set to develop five Hydro Electric Projects of various sizes, aggregating 210 MW in East Kameng District and two projects aggregating 60 MW in Tawang District on Build, Own, Operate and Transfer (BOOT) basis. 



The Company has two operational wind projects of 1.5 MW each in Hassan and Chitradurg districts of Karnataka.







The Government of India has launched the “50,000 MW Hydro-electric Initiative” with the objective of increasing the hydro power capacity in India out of which more than half the capacity has been identified in the state of Arunachal Pradesh itself.



EDCL has entered into Memorandum of Understandings with the Government of Arunachal Pradesh to develop five Hydro Electric Projects of various sizes, aggregating 210 MWs in East Kameng District and two projects aggregating 60 MW in Tawang District on Build, Own, Operate and Transfer (BOOT) basis for a lease period of 40 years from the Commercial Date of Operation. 



The detailed studies of the projects are going on. It is expected to start construction on these projects from January, 2010 in a phased manner and to complete the same by the year 2016.


       Promoter holding 61.31% stake in company, in September quarter company posted 8 cr topline and 3.16 cr bottom line (last full year bottom line was 1.38 cr ).  New Arunachal projects will company's topline and bottom line in coming years. Stock trading both NSE and BSE @ 43.50 level, high risk taker investors can buy this stock @ current price and hold medium to long term.


Before buy any stock take advice from certified person.

Disclosure :- I am holding this company shares.

4 comments:

  1. Dear VB,hydroelectric companies are running with high debts, what is the futre?

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    Replies
    1. This company having total debt 135 cr (down from 290.5 cr march 14 )and total liabilities 240.cr, company's total asset are 463 cr in march 15 in annual report.

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  2. Hi, can you please also explain how is EDCL better than JP Hydro in terms of projects.... leaving aside debt on JP's book.

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  3. Is it right time to invest in this now?

    ReplyDelete