@NaniNaresh 📌📌
▪️Anil Kumar Goel bought 4,00,000 shares,
▪️Prashant Jain( Jt. MD & CEO at JSW Energy) - bought 5,53,500 shares🔥,
▪️Neeraj Gupta bought 5,53,500 shares,
▪️Seema Sawtal bought 5,40,000 shares of ORIANA POWER LTD.
(all shares were allotted in private placement at price Rs52.5-105, 1:1 bonus after that was also given)(holdings as on July 22 ,2023 )
📌📌In November 2021, at the COP-26 Summit in Glasgow, Prime Minister Mr. Narendra Modi made a promise to increase India’s renewable energy generation capacity to 500 GW, and meet 50% of India’s energy needs through renewable means by the year 2030.
📌India is targeting about 450 Gigawatt (GW) of installed renewable energy capacity by 2030 – about 280 GW (over 60%) is expected from solar.
📌ORIANA's Topline increased from Rs. 5 cr. in 2018 to Rs. 133 cr. in 2023.
✅Expanded geographical footprint to Kenya, Africa. Completed 2 projects on a turnkey basis.
📍📍Oriana Power Limited provides solar energy solutions. They offer their services to industrial and commercial customers. Their vision is to offer high-quality solar energy solutions such that individuals and organizations can use sustainable and renewable energy sources for a better future.
▪️Oriana Power offers low-carbon energy solutions, which involve on-site solar project installations i.e., rooftop and ground-mounted systems and off-site solar farms i.e. Open access.
▪️Oriana Power Limited's operations can be divided into the following:
📍1)Capital Expenditure (CAPEX): This involves Engineering, Procurement, construction, and operation of solar projects. Under the CAPEX model, it offers Engineering, Procurement, construction, and operation of solar projects. Under CAPEX Model the company has delivered projects with a capacity exceeding 100 MW at various locations across India till date since commencement of business activity in this area of service i.e. June 2017.
(AN EPC PROJECT PORTFOLIO OF 80 MW+ ACROSS INDIA AND AFRICA, INCLUDING 4+ MW OF FLOATING SOLAR, 13+ MW GROUND-MOUNTED AND 55 MW+ ROOFTOP INSTALLATIONS)
📍2)Renewable Energy Service Company (RESCO): In this model, they provide solar energy solutions on a BOOT (Build, own, operate, transfer) model basis. Under the RESCO model, OPL operates through 18 subsidiaries. Its subsidiaries provide solar energy solutions on a BOOT (Build, own, operate, transfer) model basis, allowing customers to enjoy the benefits of solar energy without the upfront investment. All the Investment, Commissioning and maintenance are done at the company's end and in lieu of that it sells power to the end consumer through a Power Purchase agreement generally agreed for 25 years.
📌Some in depth details of earnings:
▪️1 MW installed under a RESCO project usually generates revenues of Rs. 12.5 crore over 25 years (~Rs. 54 lac per year).
▪️However, when it comes to profitability, Rs. 5.30 crore on PAT levels is achieved over 25 years. Of the total cumulative PAT, ~40% is achieved in the first 15 years, while balance 60% is generated in the next ten years (showcases accelerated profitability as costs decrease).
▪️The company has as on date, a total capacity of 30 MW as its RESCO book which accounts for an assured cumulative revenues of Rs. 375 crore to accrue in the next 25 years. And will lead to a cumulative PAT of ~Rs. 150 crore during the period.
▪️The company expects to expand its RESCO book to ~2X till March 2024 - leading to a robust earning visibility.
▪️70% of the projects costs are funded by Banks (SBI is the key banker for Oriana).
📌📌
IPO price: Rs.118
IPO size: 59.66 CR
Cmp:Rs286
Market cap: 547CR
P/E: 50
For the last three fiscals, OPL has reported an average EPS of Rs. 20.85 and an average RoNW of 35.36%.(pre ipo)
📌FINANCIALS:
▪️FY23 revenue is 137.3 CR as compared to 124.96 CR(FY22), 10%✅ growth yoy.
▪️FY23 PAT is 10.93 CR as compared to 6.95 CR(FY22), 57.3%✅ growth yoy.
346% 🔥growth in revenue in last 2 years.
970%🔥 growth in PAT in last 2 years.
(considering the incentive scheme from GoI, this segment has bright prospects ahead.)
📌IPO funds:
The company will utilize Rs. 23.00 cr. for working capital, Rs.20.00 cr. for investment in subsidiary companies, Rs. 2.00 cr. for capex on infrastructure and technology for expansion. The company is a holding company with 18 subsidiaries.
📌As per the offer document, the company has shown KPI Green Energy and Gensol Engg as their listed peers. They are currently trading at a P/E of 37.87, and 72.55 (as of July 28, 2023). However, they are not truly comparable on an apple-to-apple basis.
📌Client: Hindustan Aeronautics Limited ,Hero Cycle Private Limited, Tata Memorial Hospital, Mrs. Bectors Food Specialities Limited , Saint Gobain Glass India Limited), Adani Mundra Solar PV Limited , Hindustan Copper Limited , National High Speed Rail Corporation limited ,Sarvodya Kanya Vidyalaya (at 21 locations in Delhi ) , Mahindra CIE Automotive Limited, Sona BLW Precision Forgings Limited , Coal India Limited ,Welspun India , Oppl SPV CG Private Limited, Tecniqa Green Venture Private Limited.
📌SECTOR GROWTH:
▪️The global solar energy market was valued at $52.5 billion in 2018 and is projected to reach $223.3 billion by 2026, growing at a CAGR of 20.5% from 2019 to 2026.
▪️India intends to achieve net zero carbon emissions by 2070 and to meet 50% of its electricity needs from renewable sources by 2030 marks a historic point in the global effort to combat climate change.
▪️Investment in renewable energy in India reached a record US$ 14.5 billion in FY22, an increase of 125% over FY21.
▪️The growth of the solar energy market is driven by increase in environmental pollution and provision of government incentives & tax rebates to install solar panels.
📌STRENGTH:
1)Experience Management Team .
2)Training and Skill development programs to strengthens Operation & Maintenance Team.✅
3)Investment in Subsidiary Companies Our company has set up Eighteen subsidiary companies for different solar power project. Our subsidiary company have installed multiple MW capacities at Delhi, Rajasthan, Madhya Pradesh, Haryana, Gujrat , Maharashtra etc.✅
4)24/7 Premium Support System.✅
5)ESG (Environment, Social and Governance):Our company help to protect the environment by powering with 100% renewable energy.
6)Existing number, visible order book and favourable national policy support We had an EPC project portfolio of more than 80 MW across India and Africa which combined 4+ MW of projects under floating solar, 13+ MW projects in ground mounted and 55 MW+ projects in rooftop.🔥
7)Conserving precious water and land, through the innovative solution of floating solar.✅
📌FUTURE PLAN:
▪️Company to operate in higher wattage projects going forward.
▪️Expects to diversify into Green Hydrogen.
▪️Rerating opportunity on the horizon.
▪️Leadership in CAPEX - high MW projects.
▪️Scaling up the RESCO Business.
📌📌📌Disclosure: Not a buy recommendation. only for study and education purpose.Please dont buy any stock blindly. please consult your financial advisor before investing.
Zerodha (Trading & Demat Account)
RHP
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