Cantor Fitzgerald analyst Adam Forsyth spoke positively about India focussed OPG Power Ventures Plc (LON:OPG) following the company’s interim results statement on Tuesday.
“We’re seeing a continuation of the ramp up of new capacity,” Forsyth said.
“The company has completed the final stage of its Chennai project and brought up fully into operations its Gujarat project. Both of these are now contributing, and I think now from these interim results we’re seeing these running up to quite good operational output.”
He also highlights the positive pricing factors in India, where there’s a deficit of power, as well as the company’s expansion and diversification strategies including a move for renewable energy sources.
Overall, the analyst rates OPG as a ‘buy’ recommendation, and whilst his price target is presently under review he expects to come back with a strong price target.
“We think the wider opportunity in the Indian marketplace means it is a great place for an independent power company, but obviously the ability to execute is very key and I think that the track record of OPG speaks for itself.”
