Query Trends : Suryachakra Power

Query : I would like to buy 1000 shares of Suryachakra Power can you please guide me about the future prospects of the company and should I go ahead of with the investment? Amit Padalkar

Thebullishtrends: Suryachakra Power share price closed on Friday at Rs. 39.80p. Suryachakra Power is actively engaged in the generation of power in line. The company had set up 20 MW power plant in remote area near Port Blair, in Andaman Islands at a cost of Rs.850 millions. The plant is in operation for the past couple of years. It has already notched up an annual turnover of RS.800 millions.

The Company is focusing on entry into Urban infrastructure development activities and also had signed MOU with Zecon Engineering Berhad, Malaysia. The Company is also entering into Bio-diesel Sector in big way. The Company is granted Power Trading license by Central Electricity Regulatory Authority for carrying out inter state sale (trade) of power. Recently Suryachakra Power tied up with Orissa Govt for 1200 MW Thermal Power Plant with china based Guodian Coporation.

The company also announced it has entered into sales and purchase agreement for coal commodity trading with PT Central Kororindo Internasional, bk, a publicly listed company in Indonesia. Demand of power sectors is growing yoy and though Suryachakra is a small player in power sector when it compared to others leading companies, but it is having big future plans. The only thing is it can give you capital gains in the long run only.