What do major indicators of Butwal Power Company Limited say about the company? Look at some key details
Thu, Jul 25, 2019 1:01 PM on Company Analysis, Exclusive, Featured,
Butwal Power Company Limited
Symbol: BPCL
Sector: Hydropower
No. of Outstanding Shares: 24,405,550
Introduction
Butwal Power Company, one of the leading companies in Nepal’s hydropower sector, was established in 1966 as Private Sector Company and then converted into public limited in 1993. It believes on operational excellence, corporate citizenship, good governance and creating value for its shareholders.
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Associates |
|---|
|
1. Hydro Lab Private Limited (HLPL) |
|
2. Himal Power Limited |
|
Subsidiaries |
|
1. Nyadi Hydropower Limited (NHL) |
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2.Nepal Hydro & Electric Limited (NHE) |
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3.Khudi Hydropower Limited (KHL) |
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4. Kabeli 'A' Hydro Electric Project |
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5. Hydro Consult Engineering Limited |
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6. BPC Service Limited (BPCSL) |
Board of Directors
|
Names |
Position |
Experiences |
|---|---|---|
|
1. Padma Jyoti |
Chairman |
More than 16 years of experience in hydropower along 47 years of experience in industrial and business operations. |
|
2. Pradeep Kumar Shrestha |
Director |
More than 16 years of experiences in hydropower along with 34 years of experience in industries and business operations. |
|
3. Bijaya Krishna Shrestha |
Director |
More than 11 years of experience in hydropower along with 38 years of experience in the banking, insurance, computer, and electronic sector. |
|
4. Om Prakash Shrestha |
Director |
More than 8 years of experience in hydropower along with 31 years of experience in the field of construction management and training. |
|
5. Sandip Kumar Dev |
Director |
24 years experience of public service, Deputy Director General in Department of Electricity Development, GoN |
|
6. Sandip Shah |
Director |
More than 26 years of experience as hydropower engineer, energy specialist, and project management professional. |
|
7. Mr. Tirtha Man Shakya |
Director |
More than 34 years of progressive track record of work experiences in different job positions in NEA and others since 1975. |
|
8. Mr. Dinesh Humagain |
Director |
15 years of experience in Nepalese Stock Market (NEPSE). |
|
9. Bijay Bahadur Shrestha |
Alternate Director |
More than 16 years of experience in hydropower along with 34 years in export sectors and 18 years in the capital market, financial and insurance sectors. |
|
10. Mr. Sanjib Rajbhandari |
Alternate Director |
30 years of experience in IT sector |
(Source: website of BPCL)
Financial Indicators
|
Particulars |
Indicator |
FY15/16 |
FY 16/17 |
FY 17/18 |
Q3 18/19* |
|---|---|---|---|---|---|
|
Paid up Capital |
NPR |
1,673,222,700 |
1,810,572,000 |
2,218,672,000 |
2,440,560,000 |
|
Reserve and Surplus |
NPR |
1,970,981,727 |
2,581,887,172 |
4,291,524,889 |
4,361,628,000 |
|
Bonus Shares |
Percent |
7 |
0 |
10 |
- |
|
Cash Dividend |
Percent |
20 |
20 |
18 |
- |
|
Earnings per Share |
NPR |
34.57 |
37.02 |
36.33 |
40.40 |
|
P/E Ratio |
Times |
25.86 |
16.75 |
12.06 |
8.91 |
|
Net Worth per Share |
NPR |
238 |
243 |
293.4 |
278.71 |
(*Earning per share and P/E ratio are annualized, 2018/19 indicators are of 9 months only, till Chaitra of FY 2075/76).
Facts and Figures
Source: Annual and Quarterly report of BPCL
Note: All the data plotted in the figures above for the last period 2018/19 include only 9 months data (up to Chaitra of 2075), due to which income from sales of electricity and ROE have shown downward trend. Based on the third quartile data, the annualized income from sales of electricity would be Rs. 706,398,667 with the CAGR of 6% and net profit would be Rs. 1,001,164,000 with the CAGR of 17% in 4 years.
Financial Indicators of BPC’s Subsidiaries
|
Particulars |
FY 2017/18 |
|||||
|---|---|---|---|---|---|---|
|
NHE |
HCEL |
Khudi |
Nyadi* |
BPCSL |
KEL* |
|
|
Paid up Capital |
139,530,000 |
14,723,100 |
84,000,000 |
555,000,000 |
10,000,000 |
1,085,014,947 |
|
Reserve and Surplus |
270,922,895 |
87,727,746 |
120,144,861 |
-22,320,291 |
5,056,972 |
-15,188,835 |
|
Net Profit |
47,408,532 |
26,623,805 |
27,695,910 |
-6,766,213 |
1,173,947 |
-5,336,602 |
|
EPS |
33.98 |
180.83 |
32.97 |
-1.22 |
11.74 |
-0.49 |
*30 MW Nyadi Hydropower Project and 37.6 MW Kabeli-A Hydroelectric Project are under construction.
Key Indicators of BPCL (V/s Industry)
Price History since FY 15/16 to 2019-07-21
Highest Trading Price: Rs. 1030 (2016-08-01)
Lowest Trading Price: Rs.332 (2019-03-03)
Highest Closing Price: Rs. 995 (2016-07-31)
Lowest Closing Price: Rs. 336 (2019-03-03)
52-weeks High: Rs. 496
52-week Low: Rs. 332
Monthly Stock Outlook
Based on its stock performance since 2011, (BPCL) Butwal Power Company Limited has closed higher in 77.78 % of May months. In terms of price change, it has gained the most (5.61 % on average) in Apr month.
Measurement of Investment Risk (VAR)
Measurement of Systematic Risk (Beta)
During this year, it is expected that the company’s net profit would reach to Rs. 1 billion, an increase of 28% compared to previous years. So, it could be expected that, this year BOD would facilitate its investors with handsome bonus and cash dividend.
The Graham number 14.86 (less than 22.5) and PEG ratio 0.77 (less than 1) suggest that the company is undervalued. On the other hand, the Core growth rate of the company is the highest in the industry. So, there is high possibility that the company’s stock may provide good capital gain to its investors in the future.
In the present context, where in annual demand for electricity is growing by around 100 MW nationally and in foreign countries like India and Bangladesh as well, there is a great opportunity for hydropower like BPC and investors. On the other hand, the competitors like Upper Tamakoshi (456 MW), expecting to start its operation from this year may become big threat to BPC.
