Positive Trends:
- Due to recent focus on clean tech, I anticipate the carbon emission rating prices to increase significantly in future. And it is carbon credits which make renewable energy projects most attractive returing superior risk adjusted returns.
- Cash flow crush has made equity quite cheap offering attractive valuation to smart and long-term investors.
Negative Trends:
- Initiation of new projects or expansion of existing capacity is declining due to recent economic slow down
- Capital inflow in non-operating infrastructure projects has dried up due to higher macro economic risk in future
- Almost 50% of power generation projects currently under development in India has halted due to lack of capital
- The waiting for Power Generation Equipment got reduced from 5 years to 3 months at some companies
- As per number the GDP growth rate is expected to be between 5 to 7%. But the real industry growth rate in terms of new projects, new investments is less than 2 - 3%.
More tomorrow. Should you have questions feel free to email me at pjain07632@yahoo.com
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