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Energy

OPG Power good choice for growth investors – the Share Centre

India-focused OPG Power Ventures is a good choice for investors looking for growth in 2016, but who are willing to accept a higher degree of risk, reckons online broker The Share Centre.

India-focused OPG Power Ventures (LON:OPG) is a good choice for investors looking for growth in 2016, but who are willing to accept a higher degree of risk, reckons online broker The Share Centre.

Reseach analyst Ian Forrest rates the power plant operator a 'buy'.

"OPG has brought a number of new plants on stream in 2015, and the company has a good record for hitting its schedule. It is also looking to develop wind and solar powered plants in the future," he says.

"With the country’s demand for power in excess of supply, the group’s management are confident that its expanding operations will benefit from this and lead to further growth opportunities."

"Bright prospects, including the new Indian government’s desire to have reliable power as a foundation for social, industrial and economic growth, make this a choice for investors looking for growth, but also willing to accept a higher degree of risk," he concludes.

OPG has power stations in Gujarat State and Chennai, Tamil Nadu, and it has a mix of higher tariff contracts with industry customers. It is also looking at a ‘pipeline’ of further projects.

Shares today are unchanged at 79.50p.

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