Shiva shree hydro power limited it’s company financial health ,market position and growth,pe ratio pb ratio value (EBITDA) industry and its economic condition risk factor and its financial ratio roe,roa dividened yield free cash flow and how its trading in nepse is it ok to invest in it or not go through the mero lagani nepse and bizmandu.com to collect more information and provide clear data
9/12/2024 02:12pm
**Shiva Shree Hydropower Limited (SSHL) presents a mixed financial picture with both strengths and challenges.** Here's a comprehensive analysis:
1. **Company Financial Health and Market Position**:
- SSHL has a market capitalization of NPR 3,171,307,200.00 and a paid-up capital of NPR 1,476,400,000.00.
- The company operates in the hydropower sector, which is a significant contributor to Nepal's energy generation.
2. **Growth and Performance**:
- The company has a 22.2 MW Upper Chaku ‘A’ Hydroelectric Project in Sindhupalchowk district.
- SSHL has experienced a net loss of Rs 358.81 million, indicating financial losses in the past.
3. **Valuation Metrics**:
- The Price-to-Earnings (P/E) ratio is -8.94, which is negative, suggesting that the company is not profitable as the EPS is -24.30.
- The Price-to-Book Value (PBV) ratio is 13.49, indicating that the market values the company higher than its book value.
4. **Free Cash Flow and Dividend Yield**:
- The free cash flow is not provided, which is essential for assessing the company's liquidity and its ability to generate cash after capital expenditures.
- The dividend yield is not mentioned, which limits insight into the company's dividend policy and shareholder returns.
5. **Financial Ratios and Risk Factors**:
- The Return on Equity (ROE) and Return on Assets (ROA) are not provided, which are crucial for evaluating the company's profitability and efficiency.
- The company faces risks such as cost and time overrun, hydrology, and geological risks.
6. **Trading Performance on Nepse**:
- The stock price is NPR 275.6 to NPR 136 over the last 52 weeks.
- The recent 1:1 right share issue aims to raise NPR 147.64 crores, indicating a strategic move to strengthen the company's financial position.
7. **Investment Consideration**:
- While SSHL has potential due to its hydropower project, the negative P/E ratio and lack of free cash flow and dividend yield data are concerning.
- The company's financial ratios are not provided, which limits a comprehensive assessment of its financial health.
- The risks associated with the industry, such as those related to hydrology and geology, are significant.
- Investors should conduct further due diligence, considering the company's financial statements, market conditions, and risk factors before making an investment decision.
In conclusion, while SSHL has potential in the hydropower sector, the lack of certain financial data and the negative P/E ratio warrant caution. Investors should gather more information from reliable sources such as mero lagani nepse and bizmandu.com before making an investment decision.