Friday 8 March 2013

Investments Ideas - Gujarat Industries Power Company Limited (GIPCL)


  
Gujarat Industries Power Company Limited (GIPCL) is a Public Limited Company was formed in 1985. The company’s primary business is Electrical Power Generation and distribution. It has tow major Power plants in operation. Initially this company was started to supply electric power to its promoters.. The company is promoted by Gujarat Urja Vikas Nigam Ltd, Gujarat State Fertilizers & Chemicals Ltd, Gujarat Alkalies & Chemicals Ltd, and Petrofils Co-operative Ltd The total power produced is 815 MW from its two power plants located at Vadodara and Mangrol

It commissioned its first project in February at Vadodara with a 145 MW qqs based Combined Cycle Power Plant. In 1997 an expansion was undertaken at Vadodara with a 165 MW Naphtha and Gas based Combined cycle power plant. In 1999 it commissioned 250 MW Lignite based Power Plant at Nani Naroli, Surat District. It has its own Captive Lignite Mines at Vastan operated for Surat Lignite Power Plant. Another 2 x 125 MW SLPP Phase II has been commissioned in April 2010. In addition to this a 500 MW Expansion Phase-3 also in progress.

The company has recently started concentrating in solar energy power generation. In Vastan Taluk it has commissioned a 5 MW Solar Power plant in January 2012.

It has being paying dividends continuously for 2010, 2011 and 2012. The book value has increased to 85.1. India as a developing nation needs power in large quantities. Given the nature of the company’s business model and the future need for power, this company has good potential to give good returns for the investors.
This stock can be bought at the current levels for the target of 88 for short term investors.

Disclaimer : I do not hold any interest in the company