Market's view on Opg Power
Published on April 2024
- There is a noted volatility in the stock, causing stress to investors.
- There are ongoing concerns regarding the timing and frequency of company updates, with expectations that these may occur only biannually.
- The company has sold solar assets, which should reflect as a decrease in either investments held for sale or non-current assets, and a corresponding reduction in debt within the solar businesses.
- The strategy of the company appears focused on deleveraging, but there are hints at possible new asset acquisitions.
- Positive movements in stock price were observed following the disposal of solar assets and with anticipation for continuous updates in the Indian energy sector.
- India’s electricity consumption continues to grow, highlighting a strong demand which is a positive indicator for the company involved in the energy sector.
- The cost of coal, predominantly sourced from Indonesia for the company, has decreased which is expected to improve margins.
- Instances of market manipulation and unusual trading activities were noted, causing frustration among investors.
- There is a lack of timely updates from the company, particularly desired from its operations in India, contributing to investor uncertainty.
- Some market movements suggested potential clearing of stock overhangs, possibly indicating a more positive future stock price trajectory.