- Name: Arun Valley Hydropower Development Co. Ltd.
- Business: Hydropower
- Established: B.S 2058.11.28 (as Pvt. Ltd.)
- Date of conversion into Public Limited:
- Commercial Operation: B.S 2060.06.01
- Date of IPO: B.S 2066.06.25
- Installed Capacity: 3 MW
- Project name: Piluwakhola hydropower project
- Site of project: Sankhuwasabha district
- Chairman: Guru Prasad Neupane
2. Ownership pattern:
- Promoters: 70%
- Public: 30%
3. List of some prominent Shareholders:
- Guru Prasad Neupane
- Satish Neupane 3.97%
- Ramesh Prasad Neupane 1.17%
- Sumitra Devi Neupane 3.67%
- Jeevan Raj Shakya 6.02%
- Amarraja Tamrakar 5.25%
- Sailendra Guragain 4.20%
- Krishna Prasad paudel 3.79%
- Bhusan Guragain 2.33%
- Saurav Guragain 2.33%
4. Equity Fundamentals:
- Last trading price(2011.12.28): Rs. 319
- 52 Week high price: Rs. 483
- 52 Week low price:Rs. 308
- Paid up capital: Rs. 26.51362 Cr
- Market Cap.(2011.12.28): Rs. 84.58 Cr
- Market value per MW of installed capacity: Rs. 28.19 Cr
- EPS (LTM): Rs. 11.08
- P/E Ratio: 28.79
- Net worth per Share: Rs. 104.83
- Total assets value per share: Rs. 143
- No. Of promoter shareholders: 82
- No. Of public shareholding through IPO: 28,502
Bonus and Dividend history:
Share(%) Cash Dividend(%)
2065/66 40% -
2066/67 10% 37%
2067/68 - 15%
6. Company outlook:
Year 2060/61 2065/66 2066/67 2067/68(audited)
Share Capital(Rs.): 11.68 Cr 12 Cr 24.01
Cr 26.51 Cr
Book debt(Rs.): 20.99 cr 11.77 Cr 8.21 Cr 6.235
Reserve(Rs.): - 10.66 Cr 5.53 Cr 0.1051
*Proposed 15% dividend is adjusted.
7. Future projects
Name Capacity Estimated Cost Remarks
Kabeli B-1 25 MW 300 Cr 51% shareholding of Ahpc,
completed, PPA on Process.
Lower Phemekhola 3.5 MW 43.60 Cr DFR Completed, application
filed for PPA.
Upper Piluwakhola 11 MW 123.70 Cr 16% Shareholding of Ahpc, PPA
Upper Khimti 12 MW 155.10 Cr Application filed with NEA for
Note:DFS = Detailed feasibility study
report. All information of these projects are based on latest published annual
8. Key Findings:
share price of the company appears overvalued based on following facts:
Ø P/E Ratio is higher than 25.
Ø Price to book value ratio comes 3.04.
Ø Total market value to cost of project
comes to 2.42. (even the advantage of debt leverage to promoters isn't
of licence the company would enjoy shall be 40 years starting B.S 2057.05.05.
on F/Y 2055/56, the applicable PPA rate shall be Rs. 3 per unit (rainy season)
and Rs. 4.24 per unit (In dry season). For next 5 years to base year, annual
increment of 6% shall be applicable thenafter for rest of years during the
licence period the `Consumer price index' calculated by NRB shall be taken as
the reference for increment and based on the mutual understanding between the
Company and the NEA.
the licence stating 3MW of total installed capacity, the actual installed
capacity is 3.2MW and the company pays the royalty charge based on the latter.
last 3 years the company has been paying in excess of what it earns annually to
its shareholders. This has led the value of reserve to nearly disappear from
the book. This cannot be conceived as the prudent managment decision. These
type of tendency signifies that the promoters are a bit myopic.
relatively small resrve(few lakhs) and the annual EPS around Rs. 11, the
investors cannot expect the better offering in the coming years.
company claims that the Ridi hydropower development company(2.4MW) is a
subsidary and operates under the managment of AHPC. However our close
inspection reveals that there is a minority shareholding of AHPC in this
company despite that the managment and Board composition of both the company
appears almost similar.
Ø Total no. of shareholders in Ridi
hydropower = 287
Ø Total share capital of Ridi H.P =Rs.
Ø Investment of AHPC in Ridi HP = Rs.
Ø i.e. percentage shareholding of AHPC
in Ridi = 7.93%.
Ø Proposed dividend by Ridi H.P for F/Y
2067/68 = 5.25%
Conclusion: The investors in AHPC cannot expect good dividend income that might
come to the company from Ridi H.P in future. Even out of 5.25% proposed
dividend of Ridi H.P, AHPC would be
entitled to book the dividend earning of
only around Rs. 6.35 lakhs.
promoters of this company are the key promoters of the Janta bank Limited. Even
AHPC has the share investment of Rs. 4 Cr. in the abovementioned bank.