Greenko Group GKO.L
Greenko Group is trading above the moving 50 day average and above the moving 200 day average on below-average volume.
Trade Greenko Group long or short on margin at City Index .
418 of 900
Overall AIM Rating
8 of 9
13 Aug 2014
4 Aug 2014
25 Jul 2014
14 Jul 2014
19 Jun 2014
19 Jun 2014
4 Jun 2014
debt financing done at 170p by thirty fifty twenty
Mon, 04 Aug 2014 07:45:00 GMT
this is great news that they got such a level of interest and commitment for very substantial funds US dollar based.... the tone of the statement is very positive too.
market sentiment seems very positive towards india given rises in indian related stocks
and GKO do have one off opportunity to grab share of the energy market and its now evident that investors are prepared to back them...
the upside is (almost) limitless
if GKO get backing they find sites, build assets, make money
and india's needs are sooo far short of current capacity that I say 'limitless'
certainly in terms of corporate growth this to me now becomes possible of 10 years at over 20% eps growth p.a.
All IMHO, DYOR + BoL
GKO is in my top5 hldgs By thirty fifty twenty
expnasion at 170p by thirty fifty twenty
Mon, 14 Jul 2014 12:27:00 GMT
RNS seems to be good news and small price rise today after recent rises
I guess they might be looking at securitising some of the revenue from current operating power plants as a cheaper source of finance than pure project debt finance or equity dilution when price is arguable low.
Singapore Gvt Fund were able to convert from c. 130p to 237p (from memory)
so you might say that realistic price was 2/3rd away along that curve (given it was 3 years out)
and it had expensive debt in the meantime at 10% I think
so great that they looking at various options
it all means expansion and that people happy to invest in the mgt team
All IMHO, DYOR + BoL
GKO is in my top5 hldgs By thirty fifty twenty
joined the party by Binkley
Thu, 03 Jul 2014 09:34:00 GMT
Morning all, ive been watching this for a while now and very interesting proposition with good everything really. So bought in today and think this is a good solid medium t long term prospect from my green portfolio.
binks By Binkley
Volume by wishful thinking
Wed, 19 Feb 2014 17:30:00 GMT
Big volume today - seems that after a clear out the often stock rises? By wishful thinking
GKO prospective Broker P/E.... by oldjoe1
Mon, 09 Dec 2013 14:27:00 GMT
Interesting to see broker Singer have a
prospective P/E of only 11.4 to 2015 (176% EPS growth)
and a PEG of .06
NAV figure per share looks interesting aswel.
Looks very cheap to me and plenty of potential.
Greenko Group PLC
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)
N+1 Singer [R]
06-12-13 BUY 10.15 4.39
Pre-tax (£) EPS (p) DPS (p)
Consensus 34.31 12.94 0.00
Norm. EPS 176.82%
Dividend Yield %
Dividend Cover x
Net Asset Value 2014 132.43p p
hemscott. By oldjoe1
GKO...... CHART BREAKOUT by oldjoe1
Mon, 09 Dec 2013 11:48:00 GMT
From a technical point of view for
the chartists among us an interesting
Re: Daily Mail-Midas by oldjoe1
Mon, 09 Dec 2013 08:54:00 GMT
Buy shares in Greenko Group, the Mail on Sunday's Midas column recommended. The renewable energy company has a massive opportunity to supply power to India, where green energy is cheaper than coal and gas. The country has a big fuel shortage and has to import fuels. Greenko's wind farms and biomass plants can fill the gap. After some bumpy early days on AIM from 2007, sentiment on Greenko has strengthened and Singapore has invested £100m in the company. At 148p, the shares offer growth potential in the next year and beyond.
Daily Mail-Midas by nk1999
Sun, 08 Dec 2013 11:15:00 GMT
Buy tip today at 148p.
I am still sceptical.
nk By nk1999
Ahead of Schedule by wishful thinking
Mon, 11 Nov 2013 08:06:00 GMT
Great announcement today. A doubling of operating MW this year and on track for the 1,000 MW by 2015 promised some years ago. Surely this stock will soon get the attention of buyers and surpass its 2011 level of £2.25 per share? IMHO
11 November 2013
Greenko Group plc
("Greenko" or "the Company")
Wind Farm Commissioned
Greenko, the Indian developer, owner and operator of clean energy projects, is pleased to announce that Phase-1 (51.2 MW) of its Balavenkatpuram wind farm has been commissioned. This takes Greenko's total generating portfolio to 411 MW, a 38% increase since April 2013.
Balavenkatpuram Phase-1 is the third wind farm Greenko has commissioned this year and the project was completed one month ahead of schedule. The project has secured a 25-year power purchase agreement with the state of Andhra Pradesh and benefits from the recently increased tariff, along with the Generation Based Incentive. The total Phase-1 cost was approximately 40 million and uses the enhanced GE 1.6 XLE turbine, which has the potential to deliver close to a 30% capacity factor in an average year.
The grid connection for the site's full capacity of 200 MW has also been completed. Phase-2 (50.0 MW) using Gamesa's large G97 turbine, which has a 90m hub height and 97m diameter blades, is currently under construction and on schedule. The Group's strategy of building large scale wind farms in a phased manner, using the latest low wind speed turbine technology connected to the high voltage transmission grid, means it is able to deliver significant, predictable and profitable growth.
As previously announced, Greenko's performance remains in line with expectations. The early monsoon helped southern hydro and wind power generation, while northern hydro is running well, with good plant availability.
Commenting on the project, Anil Chalamalasetty, CEO of Greenko, said: "We are delighted to be commissioning Phase-1 ahead of schedule. Our first two wind farms refined our modular approach to wind farm construction, which is now delivering substantial and predictable growth. As a result, we should double our generating capacity this financial year to 600 MW and remain in line to hit our 2015 target of 1,000 MW."
By wishful thinking
Re: Interest & Interest cover by wishful thinking
Mon, 29 Jul 2013 13:34:00 GMT
Not sure you are taking into account the fact that this is a company still developing many of its assets and is therefore difficult to compare to mature utilities.
I understand project finance in India for such Hydro and Wind assets is typically on a 70:30 debt equity or even higher at 80.20 so suspect GKO has lots of headroom. Sadly interest rates are still high in India.
I would prefer debt to be raised to accelerate growth rather than dilute shareholders.
I sure dividends will flow when the current projects are developed and generating cash, but why pay dividends when borrowings need to be so high?
My only frustration with GKO is that the nature of their business means projects take ages to build!
By wishful thinking
Interest & Interest cover by kingpin_z
Mon, 29 Jul 2013 12:45:00 GMT
Just passing by.
I looked at this company a year ago but forgotten why I left it and did not invest.
After having a glance at the latest and most recent results... I remembered why.
A big concern for me here was not so much the level of debt (although at close to 42% of Equity is an issue in itself), but more so the amount of interest cover from the operating profit. With interest running at barely one and a half times EBIT... that is not comfortable at all and is trending in the wrong direction.
It is for the above reason there are no dividends, the company preferring to finance debt than return money to shareholders (for now), whether this changes in future I guess remains to be seen... though dividends are an incentive to invest, if they're are no dividends... especially for a utility, there is little incentive and hence why the share price has been so stagnant for long periods of time.
For the old saying goes; - "If you look after the income, the capital will take care of itself."
The share price will change considerably once the BoD reduce the liability overhead and start rewarding investors via dividends, that too may make the institutionals become a consideration. By kingpin_z
Mop up by wishful thinking
Fri, 31 May 2013 08:59:00 GMT
Great to see yesterday's news that the big boys are backing this stock again. Hopefully any potentially spare stock has now been mopped up and the SP can move forward to reflect the value of the asset base. IMHO By wishful thinking
Another link to Global Warming article by Valuespotter
Fri, 24 May 2013 20:15:00 GMT
Sorry if the links in my last 2 posts were bad. I've tested this one and it works OK:
Global warming's terrifying new math by Valuespotter
Fri, 24 May 2013 20:09:00 GMT
Sorry - that link doesn't seem to work. Try this one:
Global warming's terrifying new math by Valuespotter
Fri, 24 May 2013 20:06:00 GMT
Article from last year, remains just as relevant today. Since this was published Hurricane Sandy caused major flooding in NYC; more recently atmospheric CO2 has climbed over 400 ppm. The article makes a compelling argument for selling fossil fuel companies and investing in green energy. Companies such as Greenko and Wasabi Energy look well positioned to benefit from the end of the illogical "green discount" on their shares.
Share price.. by SchiffJnr
Wed, 27 Aug 2014 11:24:18 GMT
... is trending up nicely :-)
Modi and Clegg by finbarr
Wed, 27 Aug 2014 09:50:39 GMT
Both have an interest in renewable 'green' energy according to this report today in The Independent
Bond holders by SchiffJnr
Wed, 06 Aug 2014 11:14:35 GMT
Does anyone know who the bond holders are? If the debt is dollarised (ie in Dollars not Rupees) than 8 is quite high, and we can take less comfort from the issue going well. With all the QE there's lots of money around looking for a decent yield, and 8% on dollar debt is a good rate.
RE: Investor's Chronicle, again . . . . by SchiffJnr
Tue, 05 Aug 2014 12:50:05 GMT
Investors chronicle target price of 225p is nice! Invetec is Greenko's appointed broker are targetting 275p.
RE: Investor's Chronicle, again . . . . by JohnGould
Tue, 05 Aug 2014 12:31:32 GMT
Importantly, bond investors clearly believe in these revenue and profit forecasts, otherwise they would not have been prepared to refinance the company on the terms agreed. In time I expect equity investors to fall in line too as there is no way the shares should be trading on only 12.5 times earnings estimates. In fact, a growth company like Greenko should be able to achieve a multiple of at least 7 times cash profits to enterprice value (market value plus debt). So on the basis that Investec expect Greenko to generate cash profits of €143m in the financial year to March 2016, and after factoring in net debt of €551m, I arrive at my own target price range of between 225p to 230p. Needless to say, having first advised buying the shares when the price was 134p (‘Buy signal flashing green’, 18 March 2013), I firmly believe that Greenko’s shares are well worth buying on a bid-offer spread of 178p to 180p.
RE: Investor's Chronicle, again . . . . by JohnGould
Tue, 05 Aug 2014 12:31:06 GMT
The fundamental case to invest is highly supportive too. Greenko’s capacity has more than doubled to 661MW since April last year, of which wind power accounts for over half. The pipeline is equally robust: around 423 MW of projects are under construction and 1,240 MW are in active development as Greenko creates a diversified hydropower and wind portfolio for India's high demand power market, supported by a reliable roll-out of high yield assets. The target is to achieve 1,000MW of operating capacity by next year, and to double capacity to 2,000MW by 2018. The political back drop is equally encouraging. In fact, clean energy is becoming an increasingly important part of the Indian energy market and will provide a significant portion of the Indian Government's 12th Plan target for new capacity. The emphasis in the Indian energy market is changing too and is more focused on price discovery using reliable supply contracts, instead of unsustainable subsidised power. Furthermore, following the newly elected Prime Minister's statement to strive to deliver “24/7 power availability in the country”, renewable energy is being seen as a key political priority. So, with capacity being ramped up, and demand strong, it’s hardly a surprise that Greenko’s profits are surging. Attractive growth rates In the financial year to end March 2014, Greenko still managed to grow revenues by 38 per cent to €53m (£42m) and increase operating profit by almost 40 per cent to €27.5m. After finance costs, pre-tax profits shot up two thirds to €13.5m to lift adjusted EPS up by over a half to 4.5 cents. Analyst Adam Forsyth at broking house Arden Partners is forecasting a further ramp up in revenues and profits for the financial year to March 2015, reflecting another sharp increase in capacity. He predicts turnover will surge from €53m to €96m which in turn will more than double Greenko’s operating profit to €63m. On this basis, expect pre-tax profit of €35.2m and EPS of 13 cents, or 10.4p a share. This means that Greenko’s shares are trading on around 17 times forward earnings. But that multiple is set to drop sharply as revenues start to flow through from Greenko’s pipeline of new capacity across a number of wind and hydro projects in India. For the financial year to end March 2016, analysts are predicting turnover of between €146m to €178m and operating profits well above €100m. On this basis, expect pre-tax profits of between €50m to €55m and EPS as high as 18.5¢, or 14.5p. This implies the shares are priced on 12.5 times earnings estimates for fiscal 2016, a modest rating for a company set to quadruple EPS over the next two financial years. Importantly, bond investors clearly believe in these revenue and profit forecasts, otherwise they would not have been prepared to refinance the company on the terms agreed. In time I ex
Investor's Chronicle, again . . . . by JohnGould
Tue, 05 Aug 2014 12:28:23 GMT
Bond investors warm to Greenko As bond issues go, this takes some beating. Greenko (GKO: 180p), the Indian developer, owner and operator of clean energy projects, has just pulled off a massive fundraise on the international bond market and one that can only highlight investor appetite for its paper, not to mention the quality of the assets held. The company’s $550m (£320m) bond issue on the Singapore Stock Exchange is by far one of the largest issues of its kind by an Aim-traded company. The fixed income issue was priced on an 8 per cent coupon with maturity extending out to 2019 in order to enable the company to refinance its existing debt at an attractive rate. Chief executive and managing director Anil Chalamalasetty rightly points out that “the quality of our operational assets has enabled the company to access the larger debt markets at better costs, allowing us further scope as well to project finance our clean energy assets.” It augurs well for the future because “as Greenko builds on its predictable and phased roll outs, we are able to enhance our business and financial efficiencies across all forms.” It’s worth flagging up too that equity investors have noted the significance of the mega bond issue. In fact, having oscillated in a tight trading range between 161p to 175p for the past seven weeks, Greenko’s share price burst out through the top of the range on news of the successful fundraise yesterday. From my lens at least, and having seen the share price pull back from a multi-year high of 193p in mid-February to test its 200-day moving average in May, this looks very much like a successful test. As I have pointed out many times in the past, in bull markets the best time to buy is on a pull back to the long-term trend line. That’s one reason why I remained positive on the shares when I last updated the investment case when the price was 162p (‘Powering up’, 16 June 2014). From a technical perspective, there is nothing to stop Greenko’s share price from running up to that February high, and beyond towards my own target price range of between 225p and 230p. If that target is achieved the company’s equity would be priced on the equivalent of seven times cash profit estimates to Greenko’s enterprise value for the financial year to March 2016. And I am not being too aggressive with my target price either; analysts at broking house Investec have a 275p target price and Arden Partner’s have a fair value of 245p a share, or 36 per cent above the current share price. Strong macroeconomic and industry drivers The fundamental case to invest is highly supportive too. Greenko’s capacity has more than doubled to 661MW since April last year, of which wind power accounts for over half. The pipeline is equally robust: aroun
RE: SP rising by SchiffJnr
Mon, 04 Aug 2014 13:25:08 GMT
Very good to see it rising! Not sure what's driving it, though it's possible a positive reaction to the bond issue / refinance, which, although at a rate of 8%, isn't bad for India; The Reserve Bank of India (RBI) raised the benchmark repo rate - the amount at which it charges to lend to commercial banks - to 8% from 7.75% in Jan 14.
SP rising by mono51
Mon, 04 Aug 2014 12:25:05 GMT
anyone know why its rising today?
Looks like some buying finally by JohnGould
Fri, 01 Aug 2014 13:07:21 GMT
nice to see, long may it continue
News by JohnGould
Wed, 30 Jul 2014 10:07:27 GMT
Hyderabad, July 28: Renewable energy company Greenko Group plc has raised $550 million by sale of bonds overseas. The bond offer of five-year tenure, carrying 8 per cent interest, was made by the company subsidiary Greenko Dutch BV, with the parent as the guarantor. The company, which is listed in the AIM of the London Stock Exchange and operates with its headquarters in Hyderabad, will list them on the Singapore Stock Exchange. Reacting to the successful offer of bonds, Anil Chalmalasetty, Chief Executive Officer of Greenko Group, told Business Line, “The company plans to ease up some of the debt burden of completed projects and deploy funds in ongoing projects through the funds raised from the bond offer. We are pleased with the development.” About 620 MW of completed projects are part of the transaction. The proceeds of the bond offer will be used primarily towards repaying the group’s existing debt, according to a statement made with the regulators. “We now have an installed capacity of over 700 MW of wind and hydel power generation assets now under operation and expect to cross one gigawatt (1000 MW) of capacity within the next few months. Several wind energy assets are at various stages of commissioning in India,” he said. (This article was published on July 28, 2014)
Tipped... by SchiffJnr
Mon, 07 Jul 2014 14:54:50 GMT
...in the Telegraph this week. Admittedly, the Telegraph aren't the best of tipsters, but this company continues to get some good press coverage. I decided to top up alittle today. Let's hope the Modi bull market continues for a long time.
Rame Energy by edthorne
Tue, 01 Jul 2014 08:32:31 GMT
Anyone follow Rame Energy, looks like they are looking to do what Greenko is doing in india but in Chile:
RE: Interesting ft article by JohnGould
Tue, 24 Jun 2014 23:40:19 GMT
Recent data show that wholesale price inflation topped 6 per cent a year in May, up from 5.2 per cent in April; consumer prices rose by an annualised 8.3 per cent, against a central bank target of 8 per cent. Indians, then, will be keeping an anxious eye on Iraq for more reasons than one. “Definitely we view this as something to watch more carefully if this emerges to be a trend,” says Shubhada Rao, chief economist at Yes Bank. “However, if we have some semblance of control over what’s happening in Iraq over the next few weeks, probably we could see some relief.”
Interesting ft article by JohnGould
Tue, 24 Jun 2014 23:38:09 GMT
Indian inflation feels the heat from Iraq Jun 16, 2014 5:07pm by Avantika Chilkoti 2 inShare 1 0 The violence in Iraq has put the nation’s oil exports at risk, prompting a rise in global oil prices. For India, which relies on imports for over 75 per cent of its oil and gas needs, that could spell trouble – especially as a new government takes over in New Delhi, eager to control India’s fiscal and current account deficits while maintaining popular support. In India’s heavily regulated market, local media have warned that the losses India’s oil marketing companies suffer for providing cheap diesel could double as global oil prices rise. “Because the fuel prices are regulated, if fuel prices goes up, the losses go up,” says Dayanand Mittal, an oil and gas expert at brokerage Ambit Capital. Industry analysts hope the current surge in oil prices will be temporary but the fear is that it may affect the government’s plans to slowly deregulate the market. Oil marketing companies have been allowed to up the selling price of diesel by 50 paise a litre each month. The ‘under-recoveries’ – the losses companies make by selling below cost – in the last fortnight were about Rs1.5 a litre, according to Prayesh Jain, an analyst at India Infoline, a local brokerage. Such losses are exacerbated by interest costs and their impact on capital expenditure. Source: Crisil As prices continue to rise, losses should have been eroded over the next few months, after which prices would be entirely freed. But that was before the sudden rise in global prices. It has come at a bad time for India, as the incoming government is poised to announce a new budget designed to rein in the fiscal and current account deficits. Expensive subsidies are part of the problem. Last October, an expert group found that the subsidies on petroleum products cost the government Rs969bn ($16bn) in the 2012-2013 year, which was 38 per cent of all government subsidies. India’s dependence on expensive imports is also weighing on the country’s external balances. Imports of crude oil during the 2012-13 year were valued at Rs7.85tn, up 16.7 per cent year-on-year, according to government data, as the rupee depreciated against the dollar. The rupee weakened 0.7 per cent to 60.2 to the dollar on Monday, crossing the 60 per dollar mark again. Rising fuel prices may also affect another of the government’s priority areas: inflation. “Because oil price flows through many other commodities, it impacts transportation costs so it would affect vegetables and other prices as well,” says Mittal. The central bank held interest rates steady this month. But it warned that a possible El Nino weather pattern distorting this year’s monsoon could lead to higher food prices. This isn’t a good time for fuel prices to rise too.