Buy a Green Stock and invite financial greenery into your life

Many of you guys may be very busy folks – some employed, some entrepreneurs, some professionals and so on and so forth. I would be lying to myself if I presumed that you folks are living a stress-free life whether married or not. And yes, if you aren’t married life could be great or miserable depending on how you value such bonding and relationship. And by the way did anyone say : Life is a clock and Marriage is an Alarm Clock. You decide which is which and let me know.

Now as an investor, if you miss out on any good opportunity to make money then you cant be blamed – after all there are hundreds of stock stories floating around everywhere, across the length and breadth of our country and being a busy bee you need somebody like HBJ Caps to guide and direct you once in a way. An investor can get utterly confused and may well consider pulling his hair in disgust with lots of money watering stocks out there but with very little post inflation, post tax investible surplus.. Does it ever happen to you or did it not happen to you the other day when stocks were beaten down and after just a few days many of them started rising as if a natural phenomena is occurring. Maybe you wanted to buy Aban Offshore, Reliance Communications, Punj Lloyd, Jaiprakash Industries, Unitech, IOC etc all of which have gone up in the last two days.

Next lets see how people look at things – if for instance you were to buy Reliance Communications in the range of Rs.140-141/share and tell your friend about it – he may probably say something like : have you gone nuts – why did you not buy it when it was quoting around at Rs.124 on 30 November or why the heck did you not buy IOC when it was quoting at Rs. 335-340 range when you very well knew that GOI is going to soon come out with an FPO in price band of Rs.440-450/share.

But, now that the markets have already risen, you must be wondering whether there are any good buys available which are quoting in two digits. Well, the answer is yes and the name of the scrip is : Orient Green Power Company.

Orient Green Power Company, is the largest independent operator and developer of renewable energy power plants in India based on aggregate installed capacity. Currently our portfolio includes biomass, biogas, wind energy and small hydroelectric projects at various stages of development. As of March 31, 2010, total portfolio of operating projects included 193.1 MW of aggregate installed capacity, which comprised 152.6 MW of wind energy projects and 40.5 MW of biomass projects. The portfolio of committed and development projects included approximately 815.5 MW of prospective capacity, which comprised an estimated 622.0 MW of wind energy projects, 178.5 MW of biomass projects and a 15.0 MW small hydroelectric project.

Orient Green Power Company's consolidated revenues during FY 2009-10 stood at Rs.56 crs and the company incurred a loss of around Rs. 16 crores. The company’s consolidated turnover which was Rs.8 crores in IIQFY09 shot upto Rs. 62 crores in IIQFY10 resulting in a whooping increase of 675 per and Net Loss of Rs. 4.59 crores in IIQFY09 got translated into a Net Profit of Rs. 8.72 crores in IIQFY10. It would be interesting to note that this company which generated an annual turnover of Rs. 56 crores, was able to generate a higher turnover of Rs. 64 crores in just one quarter! That’s what I would called grueling growth.

Shares of Orient Green Power Company debuted on the stock exchanges on 8 October 2010 at Rs. 45.70 on BSE, a 2.77% discount to the initial public offer (IPO) price of Rs. 47. On that day, the stock closed at Rs. 44.90, a 4.47% discount to the initial public offer price.

The stock closed at Rs. 31.15 on 2 December 2010, down by 33.72 per cent compared to its IPO price of Rs.47/share.

Orient Green Power Company spurted today by 10.37 per cent to Rs.34.05 at 12:48 IST after a well known foreign brokerage initiated coverage on the stock with a “buy” rating and a target of Rs.51/= and if you believe that “green fuel ” will someday replace “black gold” then you can look forward to great golden days.

Happy Investing!

Kishor S. Khot, [Kishor@hbjcapital.com], Equity Strategist, HBJ Capital Services Pvt Ltd