BGR Energy Systems

Alchemist

Administrator
Staff member
#2
BGR Energy Systems was one of the names that had surfaced in the Money Matters loan scam.

That may be one reason why the stock has been weak in the last few weeks.

The company has denied all allegations:

BGR Energy Systems Ltd and the group companies have not dealt with Money Matters India Pvt Ltd, Mumbai, for handling for processing any investments / loan etc. from any public sector financial institutions and banks at any point of time.

“We have not resorted to any illegal or unethical methods to get our working capital sanctioned for our business purposes. We strongly deny all the allegations by certain electronic and print media reports of involvement of BGR Energy Systems Ltd and group companies with regards to the present illegal gratification scandal,” the statement added.
BGR Energy, Oberoi Realty deny involvement in loan scandal

The stock does look slightly attractive at current price (420).

I haven't looked at the fundamentals of the company in detail and I may change my opinion after I do.
 
#3
I had also 28 shares of BGR Energy @ the average of 520 rs. I will hold this stocks for next 2 years . But lots of confusion with this stock because of scam.
 

magnet

Active member
#5
The OFS was subscribed just 0.5 times the shares on offer at 168 price.

Does it mean that some shares pass on from promoter or all shares are re-auctioned again?
 

magnet

Active member
#7
The stock has been beaten today because of founder of the company passed away.

But is the sector in very bad shape?

I have 10 shares around 300 plus rate in 2 folios.
 

Alchemist

Administrator
Staff member
#8
But is the sector in very bad shape?
Yes, the sector is in very bad shape. Thanks to the directionless policies of the central government.

New power projects are not coming up because

- it is so difficult to get land in India,
- it is so difficult to get environmental clearances in India.
- fuel is not available. Even when fuel is available the supply is erratic.
- SEBs don't want to buy more power because they don't have the money to pay the power companies. Even when the SEBs buy power, payments are often delayed.
- interest rates are very high and power projects cannot be set up without taking debt.

The demand for products of companies like BHEL and BGR Energy has shrunk drastically.
 

magnet

Active member
#9
Yes, the sector is in very bad shape. Thanks to the directionless policies of the central government.

New power projects are not coming up because

- it is so difficult to get land in India,
- it is so difficult to get environmental clearances in India.
- fuel is not available. Even when fuel is available the supply is erratic.
- SEBs don't want to buy more power because they don't have the money to pay the power companies. Even when the SEBs buy power, payments are often delayed.
- interest rates are very high and power projects cannot be set up without taking debt.

The demand for products of companies like BHEL and BGR Energy has shrunk drastically.
I felt Chinese dumping was bigger concerned.Then how is Crompton Greaves share surviving? Is the buy back reason behind supporting the stock?
 

Alchemist

Administrator
Staff member
#10
Then how is Crompton Greaves share surviving? Is the buy back reason behind supporting the stock?
Yes, buyback is one reason.

Unlike BHEL and BGR Energy, Crompton Greaves has a diversified product range.

See the breakup of revenues (standalone) for FY 2013.

TOTAL REVENUE (in lakhs).

POWER SYSTEMS 272471.00
INDUSTRIAL SYSTEMS 149944.00
CONSUMER PRODUCTS 259271.00
Others 37679.00

Total 719365.00
 
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