The market will never cease to surprise us. KP is Currently trading at a PE of 5.98 assuming full year EPS of 2.34(1.17*2).
The fixed charges have increased as noted by Impunity.
Last month Treasury said it will back KPLC in its bid to increase charges by 25% come june 2012.
The country is far off from reaching its installed MW capacity meaning theres plenty room for growth.
Savings from prepaid meters should start being felt as the years go by.
The scheduled underground delivery of power as opposed to the electric poles scheduled for 2015 is expected to save KPLC 3.2B* in maintenance costs.
Infrastucture growth and boom expected in years to come is = to even more connections per year than the current average of 200,000.
yes im pretty bullish on KPLC, It is unlikely to triple your capital(like uchumi), but its steady growth will give more than adequate returns.
As indicated by management bonuses will be the predominant mode of payment for a while due to the high CAPEX and its why they increased authorised share capital in fy 2010/2011.
Got carried away and wrote too much.
The investor's chief problem - and even his worst enemy - is likely to be himself