its a long term value buy, buy and forget, its going to be at 100 very soon....

no prakash, all the companies who are capable run their plans at 100% capacities and some companies facing supply crunch run at more than 100% capacities(i.e. by running extra shifts).......

its around 80-85%...

I suppose its 85% of full capacity....

I suppose its 85% of its full capacity....

the main thing is to get the second and first plant both on full capacity. Right now even the first plant is not operating on full capacity......

Prakash Ashok, Me thinks Himalay International should be accumulated like GOLD. Look were amrutanjan prices are quoting at.. Amrutanjan is a complete ayurvedic formula. Rs 40 for this share is a steal....

Hi Mehta

Can you tell me what was the date of this article?

As I understand company has praposed raise the limit Issued capital from Rs30 Cr to Rs50 Cr.

Which means Increase in Total authorised Capital limit from 10 to 50 Cr in no time. (Which on short term would reduce the EPS and BV).
Also current Paid up Capital is at Rs6 Cr only.

Guess thats one of the reason stock corrected from 90 to 50.

However worth the risk looking at the reserve turn around and Annual growth rate if one is willing to hold at least for 18 months.

Cheers!
Prakash...

Some companies (very few) work at 100% capacity.

Most Indian companies are not capable for this, due to supply chain constraints (One of which you have already highlighted).

There are also issues of storage/inventory, Demand forcasting and many more.
Hence most companies would not ideally like to work till the brim. However not too sure abt this company.

If they are planning working at 100% cap, then must have 100% confidence on the Supply chain obligations, else they wont risk the exposure.

Cheers!
Prakash...

Absolutely. Ideally no company would have their plants running full tilt (100%).

The critical thing to understand/find out now is at what capcaity plant1 is working right now.

Cheers!
Prakash...

EnnerGreen Resources division focuses on generation of renewable energy and is executing the Maheshwar Hydro Electric Project (MHEP) the first private sector enterprise to foray into the field of hydro power. The 400 MW project has an energy generation potential of 1 ,500mn units per annum and your company expects to see the first turbine running by December 2009.

This division also plans to set up a Solar Thermal Energy Generation Park in Jaisalmer, which has highest solar radiation in India, with an initial capacity of 1 OMW to be scaled up to 500MW in future. The project is expected to commission by 31st December 201 0 with a capital outlay of Rs 4 bn and MoU for Technology Partnership has been signed with Archimedes Solar, Italy.

Ennertech Bio-Fuels Pvt. Ltd. (a 100% subsidiary which is a part of the Resources Division) is developing Bio-Fuel Technologies by undertaking Jatropha plantations Jatropha oil is a potential substitute for diesel, providing cheap and renewable source of energy for transport & power.

EnnerGreen Solutions (which comprises of the Projects, Products and Services divisions) addresses the huge emerging opportunities in the area of Energy-Smart technologies. EnnerGreen Projects is developing world class integrated renewable energy facilities with an estimated cost of Rs 300mn for a residential tower ( Palais Royale) at Worli, Mumbai and the project is expected to be completed in 2 years. The projects division is also executing 5 Wind Solar Hybrid Systems of 1OkW each in Bhopal....

Hi,

After the 2nd Plant is running full capacity. The addition would about 7Times of current production.

Based on the above assumption of 100% utilisation of second plant the annual EPS should be about Rs 2.5 to Rs 3.

The current valuations would be at a P/E at the range of 10 on future earnings of 2nd plant running in full flow.

But I am sure due to scales of economy the efficiency and Cash utilisation would improve. Hence also improving the bottom line.

Cheers!
Prakash...

Dear radhika_nandlal

I am pretty sure on Himalya as it is one of the stocks I have been following on basis on Multilevel fold expansion of Revenue/production in the near future.

However have not tracked Amrutanjan, so I would reserve my comments on the stock.

Please share the story on Amrutanjan if you have anything coming up in that stock/company (Expansion etc).

Cheers!
Prakash...

The stock has strong Support at the 29-30 range. Not sure if we would see those levels, unless Shankar Sharma`s predictions come true.

It is developing a new support range at 36.80 to 37.60 Range. It will breach 37 levels or re-touch the level before it takes off again.

Can take a call based.

Cheers!
Prakash ...

...to increase the installed capacity of renewable energy from 10,000MW at present to 15,000MW by 2011 and 80,000MW by 2032 with an estimated investment of USD2.6 bn in the next five years. Entegra Ltd is well positioned to capture this opportunity through its fully integrated business model with several high-value projects under execution in each of the focused verticals, access to latest technology through strong tie-ups with global technology leaders and a visionary promoter, who has created a strong professional management team of technocrats and execution experts to drive the business. Renewable energy is being increasingly targeted due to strained availability of hydrocarbon fuel basket and environmental concerns in thermal
power generation.
The company also has a good order book position as of 31st March, 2009. Moreover, subsequent to March 31, 2008, the Company has fully repaid certain loans against which the promoter’s shares were pledged.
As a consequence, the Company has initialed the process of obtaining a release of these pledged shares, which is expected to be completed shortly. Also, during the year ended March 31, 2009 and subsequent to year end, the Company has been in negotiations with MPSIDC for consideration of its request either to reschedule the repayment of the liability and grant waiver of the interest for the period or permit the Company to take benefit of the revised OTS policy. As of date, MPSIDC has requested the Company to submit a revised proposal for the settlement, which is expected to be submitted shortly. Based on these negotiations, the Company is confident of obtaining a waiver of past interest and a rescheduling of repayment of the balance amount of interest and principal outstanding.
As mentioned earlier, the company is developing a 400MW (40X10) run-of-the-river hydro power project on river Narmada through a Special Purpose Vehicle (SPV), Shree Maheshwar Hydel Power Corporation Ltd. (SMHPCL), which is expected to be commissioned very soon. SMHPCL has entered into a 35-year Power Purchase Agreement (PPA) with the Madhya Pradesh Electricity Board (MPEB), which is extendable by another 20 years by mutual agreement. The PPA provides for reimbursement of fixed and variable costs and a fixed return on equity of 11% p.a. till all the loans are repaid and 14% thereafter on equity capital. The project is entitled to attractive incentives based on generation above the design energy levels and higher availability. The project is expected to generate approximately 50% higher energy levels considering the water flow from the upstream projects – 1,000MW Indira Sagar and 520MW Omkareshwar. Considering 97.5% availability and average generation of only 1,200 MUs p.a., the project can earn approximately 14% additional Return on Equity (ROE) taking the total ROE to 28%.
Payments from the MPEB have been secured through a 3-tier mechanism-L/C, Escrow account and GoMP guarantee. In case of any default in payment by the MPEB, the contract can be suspended and the power sold in the open market to third parties, where the tariffs are highly attractive.
Entegra Ltd aims to be an integrated renewable energy company, with focus on implementation and running of Renewable Energy generation projects; offering Renewable Energy solutions to residential, commercial and industrial facilities, and providing EPC and carrying power trading. Entegra Ltd has floated a 100% subsidiary, Ennertech Bio-Fuels Ltd to develop bio-fuel technologies and undertake Jatropha plantation in 70,000 hectares of land. It has already secured a long-term lease of land for plantation from the Madhya Pradesh Government. Project cost is estimated at approximately Rs.146mn for 10,000 tonnes per year project and 1420.5mn for 100,000 tonnes per year project.
Jatropha oil is a sustainable substitute for diesel, providing inexpensive and renewable source of energy for transport & power.
Entegra Ltd is leveraging its partnership with Bora Wind AG to foray into the high potential area of developing Wind Power Projects. The first project with 100 MW capacities will be developed in a Special Purpose Vehicle, Ennertech Wind Farms with investment outlay of Rs.6bn and is currently identifying suitable land in the state of Maharashtra, Karnataka and Madhya Pradesh.
EnnerGreen Solutions is marketing Solar Heating Systems for hot water requirement which has a short pay back period of just 2 years and has already received some orders.
Conclusion and Chart Check: At the CMP of Rs.19.70, the stock looks to be undervalued. The charts it has been found that the stock has a strong support in the price range of Rs.15.5 to Rs.18.7 which will be difficult to break in the short term.
At the current market price (CMP) the stock of Entegra Ltd is HIGHLY UNDERVALUED given the incremental fully diluted equity value of Rs.82 per share attributable to Entegra from the consolidation of Maheshwar Hydro Power Project. ...