Jaiprakash Power jumps on bargain hunting

Meanwhile, the S&P BSE Sensex was down 21.85 points, or 0.12%, to 18,607.30.

On BSE, 4.13 lakh shares were traded in the counter as against an average daily volume of 4.24 lakh shares in the past one quarter.

The stock hit a high of Rs 17.55 and a low of Rs 16.45 so far during the day. The stock had hit a 52-week high of Rs 46.90 on 11 December 2012. The stock had hit a record low of Rs 15.90 on 25 June 2013.

The stock had underperformed the market over the past one month till 25 June 2013, falling 33.67% compared with the Sensex's 5.46% fall. The scrip had also underperformed the market in past one quarter, falling 33.67% as against Sensex's 0.28% fall.

The mid-cap company has an equity capital of Rs 2938 crore. Face value per share is Rs 10.

The recent fall in shares of Jaiprakash Power Ventures was triggered by the company's announcement that operations at its hydro-power plant in Uttarakhand stopped due to floods.

The company made the announcement during trading hours Monday, 24 June 2013. The stock tumbled 13.48% to Rs 17.65 on that day. It fell 18.87% in two sessions to Rs 16.55 on 25 June 2013 from Rs 20.40 on 21 June 2013.

Jaiprakash Power Ventures announced that since the onset of monsoon, Uttarakhand, including Chamoli district where the company's 400 megawatts (MW) Vishnuprayag Hydro-power plant is located, has witnessed a heavy rainfall causing unprecedented flood of very high intensity.

Due to the flood, excessive silt, boulders and other materials have accumulated in the Alakananda river, leading to shutdown of the barrage operations and power generation at the company's hydro-power plant from 16 June 2013.

The company said that while it is taking effective steps to restore operations, assessment of damages at the plant will be made on restoration of commutation and connectivity to the barrage site. The Vishnuprayag project is covered under Industrial All Risk Insurance Policy, the company said.

The company added that floods in Alaknanda river has resulted in force majeure event for the Vishnuprayag project, commercial aspects of which shall be addressed in accordance with power purchase agreement between the company and Uttar Pradesh Power Corporation (UPPCL).

The Vishnuprayag hydro-electric project was commissioned in October 2006, a run-of-the river project located across river Alaknanda in district Chamoli of Uttarakhand. The project, utilising the waters of river Alaknanda, has an underground power station with an installed capacity of 400 MW (4x100MW).

Last week a cloudburst was reported in Kedarnath and Rampada region of Uttarakhand where hundreds of people were killed and plenty of people are still missing.

Jaiprakash Power Ventures reported net loss of Rs 122.26 crore in Q4 March 2013 as against net loss of Rs 6.78 crore in Q4 March 2012. Net sales rose 26.02% to Rs 369.10 crore in Q4 March 2013 over Q4 March 2012.

Jaiprakash Power Ventures currently operates the largest hydroelectric power plant in the private sector in India.

Powered by Capital Market - Live News