The Mighty Rise of JP Power
In the world of finance, sometimes great things come in small packages. JP Power Ventures Ltd (JPPOWER), priced at less than Rs 12, has defied its humble stature to exhibit an impressive surge of over 23% in just one week, reaching a fresh 52-week high of Rs 11.55. In this article, we’ll unravel the story of this underdog and its incredible journey.
A Brief Introduction to JP Power Ventures Ltd
Jaiprakash Power Ventures Limited (JPVL), a member of the esteemed Jaypee Group, was established in 1994. The company manages the 400 MW Vishnuprayag Hydroelectric project in Chamoli District. Additionally, it is actively involved in the implementation of the 1320 MW Nigrie Thermal Project in Madhya Pradesh, set to initiate operations in 2013.
JPVL is a key player in Madhya Pradesh, operating the 500 MW Bina Thermal Power Project and the 1320 MW Nigrie Coal-fired Thermal Power Plant. The group has successfully developed 3300 MW of supercritical thermal power plants, including the 1980 MW station in Bara, Uttar Pradesh.
Amelia (North) coal block was initially allocated to the Madhya Pradesh State Mining Corporation Limited in 2006, but its allocation was declared illegal and arbitrary by the Supreme Court in 2014. Following this verdict, JPVL, having commissioned a 2×660 MW thermal power plant at Nigrie, participated in the tender process and secured the coal block. The necessary agreements were signed, and mining activities commenced in May 2015.
As part of its strategic ventures, JPVL holds a 74% equity capital in Jaypee Powergrid Limited (JPL), contributing to a 214 km power transmission project associated with the Karcham Wangtoo project. Moreover, through its subsidiary Jaypee Arunachal Power Limited, JPVL is actively involved in two hydro power projects in Arunachal Pradesh: the 2700 MW Lower Siang and the 500 MW Hirong. The company has also entered into an implementation agreement with the Government of Meghalaya for the development of the 270 MW Umngot and 450 MW Kynshi Stage–II hydro power projects.
Presence
Board of Directors
- Shri Manoj Gaur, Chairman
- Shri Sunil Kumar Sharma, Vice Chairman
- Shri Suren Jain, Managing Director & CEO
- Shri Sonam Bodh (IDBI Nominee)
- Shri Praveen Kumar Singh, Whole-time Director
- Smt. Binata Sengupta
- Dr. Vandana R. Singh
- Shri Anupam Lal Das
- Shri Sudhir Mital
- Shri Pritesh Vinay
- Shri Rama Raman
List as on 30th August , 2023
Vision
At the heart of JP Power vision is a commitment to be the leading force in the power sector, ensuring efficiency in every aspect of our operations. JP Power strive to use resources optimally, providing universal access to power while continuously benefiting all our stakeholders.
Mission
JP Power mission stands on strong principles, embodying our dedication to excellence:
1. JP Power aim to develop and manage projects with technical prowess, ensuring cost-effectiveness at every step.
2. By implementing cutting-edge monitoring and maintenance techniques, we seek to gain a competitive edge in the industry.
3. There goal is to evolve into a globally recognized, diversified power company with multiple revenue streams and minimal business risk.
4. They aspire to play a pivotal role in driving the growth of the Indian power sector.
5. Through expanding installed capacity, JP Power aim to curate a superior portfolio of assets.
6. JP Power are committed to maintaining a high level of social responsibility in the communities they serve.
7. Upholding principles of trust, corporate governance, and transparency is paramount in every facet of JP Power business.
The Spectacular Breakout
JP POWER has achieved a remarkable breakthrough on the weekly chart. It’s worth noting that the stock had struggled to surpass Rs 11.10-11.15 for eight long years. However, this recent surge marks a significant multi-year breakout, supported by a substantial increase in trading volume.
Bullish Signs in Technical Indicators
In terms of technical indicators, JPPOWER is showing strong bullish signs. The daily Relative Strength Index (RSI) is favorable, and the weekly RSI is witnessing a positive shift. Additionally, the Moving Average Convergence Divergence (MACD) is indicating strong bullish momentum.
The Momentum and Trend Strength
The Average Directional Index (ADX), which measures trend strength, is standing at a robust 35.73, signifying a powerful uptrend. Moreover, the +DI (positive directional indicator) consistently surpasses the -DI (negative directional indicator) and ADX, highlighting the stock’s bullish potential.
The Comeback via Quarterly Results
JP POWER made a strong comeback in its recent Quarterly Results after experiencing two consecutive quarters of losses. The company reported an operating profit of Rs 521 crore and a net profit of Rs 192 crore, boosting investor confidence.
Peer Comparison
| Peer Comparison | |||||||||
| COMPANY | PRICE (Rs.) | MCAP (Cr.) | P/B | P/E | EPS (Rs.) | ROE (%) | ROCE (%) | P/S | EV/EBITDA |
| Torrent Power | 1,008.85 | 48,487.02 | 4.11 | 23.08 | 43.71 | 20.05 | 19.33 | 2.57 | 11.67 |
| SJVN | 89.95 | 35,348.51 | 2.47 | 31.62 | 2.84 | 10.12 | 11.05 | 12.04 | 17.43 |
| Neyveli Lignite | 186.3 | 25,833.04 | 1.63 | 14.14 | 13.18 | 8.78 | 10.33 | 1.99 | 7.03 |
| CESC | 121 | 16,039.40 | 1.56 | 18.89 | 6.4 | 8.34 | 9.71 | 2.01 | 9.6 |
| Indian Energy Exch | 159.45 | 14,218.04 | 16.67 | 45.71 | 3.49 | 40.21 | 52.62 | 35.47 | 31.47 |
| JP Power Ventures | 14.05 | 9,629.11 | 1.33 | 5,203.70 | 0 | 0.85 | 5.02 | 1.66 | 11.28 |
| Reliance Power | 23.6 | 8,994.39 | 1.01 | 11.48 | 2.06 | 7.36 | 5.7 | 312.52 | -80.54 |
| Reliance Infra | 223.75 | 8,863.44 | 1.18 | 0 | -93.18 | -36.85 | -19.45 | 10.94 | -114.32 |
| Nava | 408.95 | 5,933.89 | 1.67 | 30.24 | 13.52 | 9.39 | 11.34 | 3.71 | 19.42 |
| Inox Wind Energy | 4,290 | 5,168.41 | 4 | 19.06 | 225.1 | 0.63 | 0.73 | 414.93 | 18.82 |
Company Essentials
| MARKET CAP | ENTERPRISE VALUE | NO. OF SHARES | ||
| ₹ 9,629.11 Cr. | ₹ 14,208.51 Cr. | 685.35 Cr. | ||
| P/E | P/B | FACE VALUE | ||
| 5203.7 | 1.33 | ₹10 | ||
| DIV. YIELD | BOOK VALUE (TTM) | CASH | ||
| 0% | ₹ 10.56 | ₹ 175.09 Cr. | ||
| DEBT | PROMOTER HOLDING | EPS (TTM) | ||
| ₹ 4,754.49 Cr. | 24% | ₹ 0 | ||
| SALES GROWTH | ROE | ROCE | ||
| 25.13% | 0.85 % | 5.02% | ||
| PROFIT GROWTH | ||||
| -45.60 % |
Frequently Asked Questions about JP Power Stock
- What is JP Power, and what does it do?
JP Power Ventures Ltd is a company engaged in diverse activities, including coal mining, sand mining, cement grinding, and the production of thermal and hydroelectric electricity.
- How has JP Power stock performed recently?
JP Power stock has experienced notable movements, with a recent surge of over 23% in one week, reaching a fresh 52-week high.
- What factors contributed to JP Power’s recent performance?
Positive indicators include a breakthrough on the weekly chart, robust trading volume, and favorable technical indicators like RSI and MACD.
- Are there any recent financial highlights for JP Power?
After two consecutive quarters of losses, JP Power reported an operating profit of Rs 521 crore and a net profit of Rs 192 crore.
- What is the significance of the recent Quarterly Results for JP Power?
The results mark a comeback for JP Power, instilling confidence in investors about its potential.
- Is JP Power a good investment?
Deciding where to invest is a personal choice influenced by your comfort with risk and insights from market analysis. Taking the time for thorough research or seeking guidance from a financial advisor is a wise step in making informed investment decisions tailored to your goals.
- What is the current trend in JP Power’s technical indicators?
Technical indicators like RSI, MACD, and ADX suggest a strong uptrend, emphasizing the stock’s bullish potential.
- How is JP Power adapting to market trends and challenges?
JP Power has shown resilience by addressing challenges, migrating its automation framework, and staying attuned to market dynamics.
- What are the risks associated with investing in JP Power?
As with any investment, there are inherent risks, including market fluctuations, industry challenges, and macroeconomic factors.
- What is the future outlook for JP Power?
The future outlook depends on various factors, including market conditions, industry trends, and the company’s strategic initiatives. Investors should stay updated on relevant news and analyses.
A Note of Caution
Please remember that this article is for informational purposes and does not constitute investment advice. Always conduct thorough research and consider your investment goals before making any financial decisions.
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