Market forces are most of the times smarter than us, there is always something hidden when the stock falls more than 30-40% in a short time. Such news gets discovered very late by the general small investors.
Examples - Usher Agro, ANG Industries, Amtek Auto, MBL Infra, RS Software etc.
Over my experience of 13 years in this market, I have learnt one thing that no matter how good the company never trust any management until they have proven their credibility irrespective what they come and say on business news channels.
I will approach a wait and watch situation over the next 2 months before taking any action.
Infact this article is hugely a positive for Ujaas as it will improve their
margins if prices of modules go down after they get an order on an old
quoteâŚ
Thatâs good news. Increases the chances of compliance and with price of solar modules decreasing, this is enough support for now to make solar competitive against thermal power. Note that RECs acquired till March end would get a vintage multiplier of 3.5 so for each such REC, there would be 3.5 RECs sold at the new floor price. Management had already alluded to this in Q3 concall:
The Govtâs solar push is getting real. Atleast 10 GW to be commissioned in 2017. Cumulative installations till 2016 is 10 GW. Great news for EPC companies such as Ujaas
The present regime is very aggressive ti achieve itâs Vision 2022
" Cabinet approves enhancement of capacity from 20,000 MW to 40,000 MW of the Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects
Press Information Bureau: February 23, 2017
New Delhi: The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, Shri Narendra Modi, today approved the enhancement of capacity from 20,000 MW to 40,000 MW of the Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects. The enhanced capacity would ensure setting up of at least 50 solar parks each with a capacity of 500 MW and above in various parts of the country. Smaller parks in Himalayan and other hilly States where contiguous land may be difficult to acquire in view of the difficult terrain, will also be considered under the scheme. The capacity of the solar park scheme has been enhanced after considering the demand for additional solar parks from the States.
The Solar Parks and Ultra Mega Solar Power Projects will be set up by 2019-20 with Central Government financial support of Rs.8100 crore. The total capacity when operational will generate 64 billion units of electricity per year which will lead to abatement of around 55 million tonnes of CO2 per year over its life cycle.
It would also contribute to long term energy security of the country and promote ecologically sustainable growth by reduction in carbon emissions and carbon footprint, as well as generate large direct & indirect employment opportunities in solar and allied industries like glass, metals, heavy industrial equipment etc. The solar parks will also provide productive use of abundant uncultivable lands which in turn facilitate development of the surrounding areas.
All the States and UTs are eligible for benefits under the scheme. The State Government will first nominate the Solar Power Park Developer (SPPD) and also identify the land for the proposed solar park. It will then send a proposal to MNRE for approval along with the name of the SPPD. The SPPD will then be sanctioned a grant of upto Rs.25 Lakh for preparing a Detailed Project Report (DPR) of the Solar Park. Thereafter, Central Financial Assistance (CFA) of up to Rs. 20 lakhs/MW or 30 percent of the project cost including Grid-connectivity cost, whichever is lower, will be released as per the milestones prescribed in the scheme. Solar Energy Corporation India (SECI) will administer the scheme under the direction of MNRE. The approved grant will be released by SECI.
The solar parks will be developed in collaboration with State Governments/UTs. The State Governments/UTs are required to select the SPPD for developing and maintaining the solar parks.
Ministry of New and Renewable Energy (MNRE) is already implementing a scheme for development of at least 25 solar parks with an aggregate capacity of 20,000 MW, which was launched in December 2014. As on date, 34 solar parks of aggregate capacity 20,000 MW have been approved which are at various stages of development."
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Iâm invested in Ujaas for over three years now. Iâve offloaded 40% of my holdings today. Iâve a strong feeling that itâs just waiting to dive down. Iâm also thinking of exiting the counter completely if I donât see decent Q4 results.
Hi GajantâŚGood that you are waiting for Q4 results. My hunch is it will
be very good- but note sure whether markets will give a thumbs up or not
!!. Somehow market does not seem to believe the size of the opportunity in
solar EPC unfolding in front of our eyes. Or, is it a great opportunity to
buy even now and markets will realise and value this company very highly in
months to come. Market ,may also think they are selling solar power to
discoms which is not a good place to be in.
The latest corporate presentation of Ujaas. This presentation has a lot more information on their EPC operation & their strengths. And it is very informative.
CRISIL credit rating for UJAAS energy upgraded to CRISIL A/stable for long term debt and CRISIL A2+ for short term loansUJAAS cedit rating upgrade CRISIL.pdf (718.9 KB)
The credit rating rationale and explanation is out in the Crisil website (pasted below). The long term rating is A- (stable). A very decent rating for a small/midcap company. While many stars in the markets are at BBB. And i see the risks on Ujaas which is in our mind going away in months to come.
There is a new circular on REC prices by CERC. I am not familiar and do not know what to make of this circular. Can someone who is familiar in this topic explain it for other pls
@rvetri
Extension of REC is indeed great news. This was the reason Ujaas corrected from 45 levelsâŚ
People were afraid of the write - off of REC due to expiryâŚ
(I have no deep knowledge on thisâŚbut concall also mentioned that they were sure that REC would get extension and here it is the good newsâŚ) Cheers
