Motilal Oswal - MOSL: UTILITIES-Flexible coal linkage enhances value of low-cost plants-18GW state-owned plants could stop generation

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Motilal Oswal

MOSL: UTILITIES-Flexible coal linkage enhances value of low-cost plants-18GW state-owned plants could stop generation

â€‹UTILITIES: Flexible coal linkage enhances value of low-cost plants; 18GW state-owned plants could stop generation; Buy JSPL, JSWE

Flexible utilization of coal linkage (tolling) is a win-win. Saving of transport cost reduces DISCOMsâ€™ power purchase cost and supports generation by low-cost private power plants.
There is potential for ~18GW of high-cost state GENCOs to use tolling and generate savings of ~INR25b, representing 10% of finance cost saving under UDAY.
Private generating companies with ~27GW of untied capacities â€“ many near coal mines â€“ would benefit. Merchant power prices would get a boost.
Rising renewable energy (RE) generation enhances the value of low-cost base-load generating plants. Tolling and stricter environment norms could drive faster-than-expected rebalancing of the power market.
We like JSPL and JSW Energy. The implied value of their merchant capacities is at a significant discount to replacement cost.

15/05/2017 6 EN

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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MOSL: UTILITIES-Flexible coal linkage enhances value of low-cost plants-18GW state-owned plants could stop generation

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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