Author Topic: SEL -- Sitara Energy Ltd  (Read 3211 times)

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Offline Just Another Guy

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SEL -- Sitara Energy Ltd
« Reply #-1 on: November 23, 2012, 04:44:24 PM »
AOA All.

I am eyeing SEL for some time. The price is merely in early 20s and the earnings for last 6 years have ranged from 4 above upto 6! and the earnings for last year came in at a whooping 13 plus! the EPS for 1st quarter already neared 2. The book value is close to Rs 70 now and its trading at a heaving discount to its BV! Although their gas turbines were closed for more than 3900 hours(166 days assuming 24 hour run) they still managed to post such great result. I have taken an entry lately and I think its available at good bargain. The only problem however is of circular debt in power sector but that is same for all. Also it has very low volumes but we all know that can change once the share comes in limelight!

So its a BUY from my side. I would also like VALUE Bhai, POKER bhai, OULMAN bhai and QADIR bhai to give their input on this scrip!

Regards.
« Last Edit: November 26, 2012, 09:52:00 AM by Farzooq »

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SEL -- Sitara Energy Ltd
« Reply #-1 on: November 23, 2012, 04:44:24 PM »

Offline Abdul Qadir

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Re: SEL -- Sitara Energy Ltd
« on: November 23, 2012, 05:06:53 PM »
AOA All.

I am eyeing SEL for some time. The price is merely in early 20s and the earnings for last 6 years have ranged from 4 above upto 6! and the earnings for last year came in at a whooping 13 plus! the EPS for 1st quarter already neared 2. The book value is close to Rs 70 now and its trading at a heaving discount to its BV! Although their gas turbines were closed for more than 3900 hours(166 days assuming 24 hour run) they still managed to post such great result. I have taken an entry lately and I think its available at good bargain. The only problem however is of circular debt in power sector but that is same for all. Also it has very low volumes but we all know that can change once the share comes in limelight!

So its a BUY from my side. I would also like VALUE Bhai, POKER bhai, OULMAN bhai and QADIR bhai to give their input on this scrip!



Regards.



Their major generation is based on natural gas and in current season we will see Gas shortage , which might result in lower production. But book value is impressive and less free float are some factors that can contribute to price appreciation.
« Last Edit: November 23, 2012, 05:13:53 PM by qadir »

Offline Dehan

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Re: SEL -- Sitara Energy Ltd
« Reply #1 on: November 23, 2012, 05:56:37 PM »
AOA All.

I am eyeing SEL for some time. The price is merely in early 20s and the earnings for last 6 years have ranged from 4 above upto 6! and the earnings for last year came in at a whooping 13 plus! the EPS for 1st quarter already neared 2. The book value is close to Rs 70 now and its trading at a heaving discount to its BV! Although their gas turbines were closed for more than 3900 hours(166 days assuming 24 hour run) they still managed to post such great result. I have taken an entry lately and I think its available at good bargain. The only problem however is of circular debt in power sector but that is same for all. Also it has very low volumes but we all know that can change once the share comes in limelight!

So its a BUY from my side. I would also like VALUE Bhai, POKER bhai, OULMAN bhai and QADIR bhai to give their input on this scrip!



Regards.



Their major generation is based on natural gas and in current season we will see Gas shortage , which might result in lower production. But book value is impressive and less free float are some factors that can contribute to price appreciation.

Just Another Guy bhai, please compare its price and payout and dividend yield with PKGP, NCPL, HUBC and then decide.
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Offline SBM

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Re: SEL -- Sitara Energy Ltd
« Reply #2 on: November 24, 2012, 01:44:28 PM »
AOA All.

I am eyeing SEL for some time. The price is merely in early 20s and the earnings for last 6 years have ranged from 4 above upto 6! and the earnings for last year came in at a whooping 13 plus! the EPS for 1st quarter already neared 2. The book value is close to Rs 70 now and its trading at a heaving discount to its BV! Although their gas turbines were closed for more than 3900 hours(166 days assuming 24 hour run) they still managed to post such great result. I have taken an entry lately and I think its available at good bargain. The only problem however is of circular debt in power sector but that is same for all. Also it has very low volumes but we all know that can change once the share comes in limelight!

So its a BUY from my side. I would also like VALUE Bhai, POKER bhai, OULMAN bhai and QADIR bhai to give their input on this scrip!



Regards.



Their major generation is based on natural gas and in current season we will see Gas shortage , which might result in lower production. But book value is impressive and less free float are some factors that can contribute to price appreciation.

Just Another Guy bhai, please compare its price and payout and dividend yield with PKGP, NCPL, HUBC and then decide.

yeah i have looked at it too .. Its much smaller than the above mentioned ipps 80mw v 1400 for hubc..and as of yet, it doesnt sell bijli to the grid but sells to group companies ..Dont think they will have capacity payments type agreements, so earnings more volatile..
 They are trying to sell excess capacity to fesco which would increase sales for sure..

better to get this stock as cheap as possible if you are interested in it as  lots of uncertainities surrounding it 
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Offline jaz

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Re: SEL -- Sitara Energy Ltd
« Reply #3 on: November 24, 2012, 02:47:53 PM »
IPPs are not for growth and div yield of SEL is not at all impressive. Decide yourself

Offline Poker Face

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Re: SEL -- Sitara Energy Ltd
« Reply #4 on: November 24, 2012, 04:01:03 PM »
AOA All.

I am eyeing SEL for some time. The price is merely in early 20s and the earnings for last 6 years have ranged from 4 above upto 6! and the earnings for last year came in at a whooping 13 plus! the EPS for 1st quarter already neared 2. The book value is close to Rs 70 now and its trading at a heaving discount to its BV! Although their gas turbines were closed for more than 3900 hours(166 days assuming 24 hour run) they still managed to post such great result. I have taken an entry lately and I think its available at good bargain. The only problem however is of circular debt in power sector but that is same for all. Also it has very low volumes but we all know that can change once the share comes in limelight!

So its a BUY from my side. I would also like VALUE Bhai, POKER bhai, OULMAN bhai and QADIR bhai to give their input on this scrip!

Regards.

I have looked into it
FY 2012 sales increased considerably and subsequently eps as well.
9M 2012 eps was 2.83 which jumped to 13.17 in FY 12.
Now in Q1 2013, it has again posted eps of 1.90.
Cash dividend payout has decreased from 2 to 1 over the past 2 years.

Some things to look for are power purchase agreement, expected cash flows in future and dividend paying capability.
The power companies are fixed income kind of stocks with limited growth and dividend yield. In this case, the yield is on the lower side when compared to NPL, NCPL & PKGP.
If dividend and eps are expected to increase, then we can expect market price to also appreciate.
Otherwise, it will stay where it is.
To me it seemed huge jump in Q4 2012 eps was a some kind of one off effect.
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Offline tariqhafeez

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Re: SEL -- Sitara Energy Ltd
« Reply #5 on: November 24, 2012, 06:03:40 PM »
i hv seen the accounts of SEL .  It is quite interesting situation. The plant uses variety of fuels & hence has the flexibility and low fuel supply risk, contrary to IPPs.  There is also low issue of circular debt as I see timely payments as cash flow statement is in positive.  What has increased the profit is the higher offtake of electricity by FESCO and reasonable gas provision to it.  The impact of gas for such mall capacity plant makes it quite profitable.

It also supplies to group companies of SITARA. Hence, it has diversified customers and can fix price for customers other than FESCO without NEPRA approval.  EPS seems to have gone up not for one off, as the price fixing for other than FESCO has been increased .  It is expected to remain elevated as FESCO also started to depend more on SEL.  However, payout never went higher so it is not so attractive on dividend yield.  However, I see good chances that it will go up.

Offline Just Another Guy

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Re: SEL -- Sitara Energy Ltd
« Reply #6 on: November 26, 2012, 09:25:23 AM »
Thank you all for providing input on my post about SEL.

Qadir bhai, Gas shortage has always been as issue and like I mentioned the plant was already closed for more than 166 days last year, yet the company was able to post an EPS of more than 13!

Dehan and Jaz bhai. The current dividend yield is not impressive but it is only due to the fact that all companies want to enhance liquidity due to the issue of circular debt. But I think sufficient reserves have been built and the company can increase future dividends anytime and going back to the original Rs2 would catapult the yield to around 10%. But I think dividend yield can rise further considering in the past company used to distribute close to half of its reserves as dividends. On the other hand, company might be having a target of increasing their generation capacity which will add value to shareholders equity but over a longer term.

Ouulman bhai...they are already selling to national grid, namely FESCO and although they have said in their annual report that future earnings depend on refurbishment of such agreement, I think the renewal will be automatic given severe shortage of electricity in the country.

Tariq bhai. I Agree with you on all counts.

Offline Just Another Guy

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Re: SEL -- Sitara Energy Ltd
« Reply #7 on: December 13, 2012, 10:39:31 AM »
AOA All.

I am eyeing SEL for some time. The price is merely in early 20s and the earnings for last 6 years have ranged from 4 above upto 6! and the earnings for last year came in at a whooping 13 plus! the EPS for 1st quarter already neared 2. The book value is close to Rs 70 now and its trading at a heaving discount to its BV! Although their gas turbines were closed for more than 3900 hours(166 days assuming 24 hour run) they still managed to post such great result. I have taken an entry lately and I think its available at good bargain. The only problem however is of circular debt in power sector but that is same for all. Also it has very low volumes but we all know that can change once the share comes in limelight!

So its a BUY from my side. I would also like VALUE Bhai, POKER bhai, OULMAN bhai and QADIR bhai to give their input on this scrip!

Regards.

AOA all.

Alhamdulillah it is up by 15% within a month since my call. On UPPER CAP today. Like I said volumes come in once price appreciates. Please remember me in your prayers :)

Offline dearhashmi

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Re: SEL -- Sitara Energy Ltd
« Reply #8 on: December 13, 2012, 11:03:38 AM »
AOA All.

I am eyeing SEL for some time. The price is merely in early 20s and the earnings for last 6 years have ranged from 4 above upto 6! and the earnings for last year came in at a whooping 13 plus! the EPS for 1st quarter already neared 2. The book value is close to Rs 70 now and its trading at a heaving discount to its BV! Although their gas turbines were closed for more than 3900 hours(166 days assuming 24 hour run) they still managed to post such great result. I have taken an entry lately and I think its available at good bargain. The only problem however is of circular debt in power sector but that is same for all. Also it has very low volumes but we all know that can change once the share comes in limelight!

So its a BUY from my side. I would also like VALUE Bhai, POKER bhai, OULMAN bhai and QADIR bhai to give their input on this scrip!

Regards.

AOA all.

Alhamdulillah it is up by 15% within a month since my call. On UPPER CAP today. Like I said volumes come in once price appreciates. Please remember me in your prayers :)

Bundle of Thanks Brother,

Offline Poker Face

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Re: SEL -- Sitara Energy Ltd
« Reply #9 on: December 13, 2012, 12:52:11 PM »
congrats bro
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Offline Just Another Guy

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Re: SEL -- Sitara Energy Ltd
« Reply #10 on: December 17, 2012, 04:40:39 PM »
AOA.

Thanks All. Now up 20% within a MONTH Alhamdulillah. Please remember me in your prayers.

Regards.

Offline SBM

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Re: SEL -- Sitara Energy Ltd
« Reply #11 on: September 24, 2013, 10:11:40 AM »
nice eps again 13
dps just 1

http://www.kse.com.pk/notices-updates/detail2.php?id=4&nid=046537&pagesize=1&pageno=2

just another guy, you still holding ?
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Offline sst569

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Re: SEL -- Sitara Energy Ltd
« Reply #12 on: September 25, 2013, 03:38:58 PM »
nice eps again 13
dps just 1

http://www.kse.com.pk/notices-updates/detail2.php?id=4&nid=046537&pagesize=1&pageno=2

just another guy, you still holding ?

Dear Ouulman its eps is very good but it trading low as compared to EPS, what are reasons, where it should trade as per industry comparison? please shed some light.
Be patient with winning trades!!!

Offline SBM

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Re: SEL -- Sitara Energy Ltd
« Reply #13 on: September 25, 2013, 05:14:18 PM »
low d/y is main reason why it trading low
I think they are going for expansion thats why keeping paytouts low
I havent studied latest accounts so dont know for sure
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Offline Just Another Guy

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Re: SEL -- Sitara Energy Ltd
« Reply #14 on: January 04, 2014, 01:34:56 PM »
nice eps again 13
dps just 1

http://www.kse.com.pk/notices-updates/detail2.php?id=4&nid=046537&pagesize=1&pageno=2

just another guy, you still holding ?

Dear SBM,

Sorry for the late reply as I have been busy with work and family commitments. I have also been facing another issue with the use of this website for last many months. Hope you can help me on that. Actually I have AVAST antivirus installed on my laptop and it does not let me access the site siting some malware. I hope you can talk to some senior officials and founder of this site to have the issue resolved. I have just been able to access the website through my smartphone, consequently. This would help me be more regular and I am sure it will help others using the same or similar anti viruses.

Coming to your question now. Well I cashed out when it crossed 34 in the last rally as 50% profit in about 7 months is a decent gain. I wanted to buy again recently when it dropped to around 30 but could not due to better opportunities in textiles and lately PKGP.

Those who have benefited due to my call, please remember me in your prayers.

and SBM bro I am also seeing another scrip (though this one can also appreciate further). Will share with you once I complete my buying as it is also another scrip with low volume  :tongue:. I expect that to more than double in a year or so in sha Allah.

Offline SBM

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Re: SEL -- Sitara Energy Ltd
« Reply #15 on: January 04, 2014, 05:25:59 PM »
its a false positive
problem is with avast not with the website
the problem has been faced by other forum members as well ...
remove avast and install avg or something

thanks for your comments ..
waiting for your call in your new scrp
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Offline ali.zia194

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Offline SBM

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Re: SEL -- Sitara Energy Ltd
« Reply #17 on: February 23, 2015, 09:41:03 AM »
I hate waking up.

Offline Omer The Researcher

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Re: SEL -- Sitara Energy Ltd
« Reply #18 on: September 22, 2015, 12:47:42 PM »
result above expectations
40+ on cards Insha Allah

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