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Chilime is considered a brighter star of the Nepali hydroelectricity sector. It is one of the companies with investors’ confidence intact and a firm hold in investors’ eyes.
Here we are just going to analyze the financials on point to point-to-point basis. This analysis will be compact but a detailed review

Analysis-Check point
1) Profit Loss Analysis
2) Cash & Investment Analysis
3) Growth Analysis
4) Stock Price Analysis
5) Out Look Analysis

  1. Profit Loss Analysis-Q-1 of 80-81 has seen revenue of 34.28 crore which is 3.66 less than Q-1 of 79-80 where it has seen growth of 5.68% while comparing Quarter to Quarter(Q-Q).
    -The operating profit and net profit(NP) are 69% and 10% respectively thanks to Finance income which has given a boost to the NP ratio.
    -The significant push in finance income has acted as rocket fuel which has pushed NP to double-digit in terms of percentage.
  2. Cash & Investment Analysis.
    -Chilime’s Cash & Cash Equivalent Has seen a fluctuation over the period of time a  fall of 85.15% and 84.07% in Q-Q & YOY comparison.
    -It seems it has been using its Cash in Investment in Associates which will be fruitful for the company in the future.
  3. Growth Analysis
    It’s essential to grasp that revenue growth in the hydropower sector may not be substantial, given that its primary revenue source is the generation of electricity,
    which has a fixed capacity. Consequently, the revenue stream remains constant unless new projects are integrated.
    -Income fluctuations may arise from the seasonal dynamics of the electricity company, influenced by Monsoon and Non-Monsoon seasons.
    -The growth in net profit has displayed a degree of consistency over the past two quarters.
    -It appears that cash is flowing into the investment department
    -The growth will align with Production capacity and other income impacts.
  4. Stock Price Analysis
    Between January 23rd and December 23rd, the stock has maintained a range of 400-500, reaching a 52-week high of 594. The NEPSE  has fluctuated between 2200
    and 1800 during this period. Simultaneously, the Hydropower sector experienced a notable decline, dropping from 2750 to nearly 2000, representing an approximately
    35% decrease. In contrast, CHCL stock appears to be resilient, holding its ground despite the fluctuations in the NEPSE and the decline in the Hydropower index.
  5. Outlook Analysis.
    Prominent it seems NEPSE and sentiment toward the Stock market is holding the flow of Chilime (CHCL), as it hasn’t corrected much in comparison to NEPSE & Hydro index,
    As seen in pic below Nepse is only 2% and the hydro index is 3% away from the 52-week low, however, CHCL is still 27 % away.
    *Quick outlook*
    -Investment in Associates helps in boosting other income and Capital gain of CHCL
    -The Unlocking of associate production will be beneficial for CHCL too in a profitability point of view too
    -The recent improvement in the operating profit ratio is also a green signal for CHCL.
    -The cash is drying in the company which could be a  point to look for in the entity
    -The growth is almost stagnant.This was a quick 5-point analysis of CHCL (Chilime Hydropower Company Limited)- This is only for educational purposes not a basis for a buy or sell decision.
    In case of any query feel free to contact us at:admin@nepseinvest.com

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