📉 KOHE: SELL Signal (7/10) – Corporate Briefing Presentation 2025

📌 Key Takeaways

• 1. ⚡️ KEL was established by Saigols Group and Toyota Tsusho Corporation.
• 2. ⚙️ Operates a furnace oil power station with a 124 MW net capacity.
• 3. 📜 KEL has a 30-year Power Purchase Agreement (PPA) extended by 161 days, ending November 27, 2027.
• 4. ⛽ Also has a 30-year Fuel Supply Agreement (FSA).
• 5. 🤝 Implementation Agreement (IA) guarantees performance by power purchaser and fuel supplier.
• 6. 🏢 Saigols hold a majority of 62% shareholding in KEL.
• 7. 💪 Company demonstrated 129.29 MW capacity in its annual test, surpassing the 124 MW obligation.
• 8. 💰 KEL is a debt-free company.
• 9. 📉 Current Assets decreased from Rs. 5,346 million in 2024 to Rs. 2,850 million in 2025.
• 10. 📉 Current Liabilities decreased from Rs. 3,205 million in 2024 to Rs. 1,321 million in 2025.
• 11. 📉 Yearly dispatches significantly decreased to 7.01% in 2025.
• 12. 📉 Total Turnover decreased from Rs. 10,010 million in 2024 to Rs. 4,329 million in 2025.
• 13. 📉 Net Profit decreased from Rs. 1,600 million in 2024 to Rs. 724 million in 2025.
• 14. 📉 EPS decreased from Rs. 9.44 in 2024 to Rs. 4.27 in 2025.
• 15. 📉 Dividend declared decreased from Rs. 14.50 in 2024 to Rs. 7.00 in 2025.

🎯 Investment Thesis

Given the declining financial performance and identified risks, a SELL recommendation is warranted. The sharp drop in revenue, profit, EPS, and dividends indicates significant operational challenges and potential long-term issues. Furthermore, the expiry of the PPA and increasing solarization pose substantial threats to future revenue. Price target: Rs. 20, Time horizon: 12 months. Rationale: The price target factors in the declining revenue, profitability, and heightened risk profile of the company.