2:1 bonus share; Rs 1,783 crore order book & promoter increase stake: Heavy buying multibagger solar EPC stock - hit upper circuit on May 22; here’s why!

The stock gave multibagger returns of 170 per cent in just 1 year and a whopping 5,000 per cent in 3 years.

Today, the stock market was trading in the green with the BSE Sensex Index up by 0.90 per cent and the NSE Nifty-50 Index up by 0.15 per cent. Along with the market in green, shares of Gensol Engineering Ltd hit a 5 per cent upper circuit to Rs 958.45 per share from its previous closing of Rs 912.85 per share. The stock gave multibagger returns of over 200 per cent from its 52-week low of Rs 311.69 per share. The shares of the company saw a spurt in volume by more than 3 times on BSE.

Gensol Engineering, founded in 2012, is a leading solar EPC company with over 600 MW of installed solar power globally. They've recently expanded beyond solar with a state-of-the-art EV manufacturing facility in Pune, India, producing three- and four-wheeled electric vehicles with ARAI approval. Gensol aims to revolutionize India's EV landscape by not only manufacturing vehicles but also offering leasing solutions to various clients, and further strengthened their renewable energy focus by acquiring Scorpius Trackers, a bankable solar tracking technology company.

The sudden rise in the stock price was due to the following factors:

1) The Board of Directors of the company will be held on Tuesday, May 28, 2024, inter alia; (i) to consider and approve audited financial results of the company for the Financial Year 2023-24. (ii) Any other matter with the permission of the chair.

2) Gensol Engineering Limited announced the appointment of Ms Shilpa Urhekar as its new Chief Executive Officer (CEO) for Solar EPC (India), succeeding Mr Ali Imran Naqvi who has been nominated to oversee the growth of Gensol Engineering Limited and its subsidiaries. Ms Urhekar, previously the Country Head (India) at Sterling and Wilson Renewable Energy Ltd (SWREL), led the successful bidding and execution of 6 Gigawatts (GW) of renewable energy projects, achieving positive bottom-line growth and completing projects ahead of schedule. With over two decades of experience in the renewable energy industry, Ms Urhekar's appointment is a pivotal moment for Gensol's leadership team, as she will focus on strengthening the company's Solar EPC business and solidifying its position as a key player in India's Renewable Energy landscape.

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Gensol Engineering is experiencing a banner year, boasting both a record-breaking order book of Rs 1,783 crore at the start of FY25 and its highest-ever revenue from operations of over Rs 960 crore in FY24. This impressive order book, signifying strong demand and solidifying Gensol's position as a key player in renewable energy and electric mobility, is further bolstered by the company's diverse involvement across multiple sectors. The 141 per cent year-over-year revenue growth, compared to Rs 398 crore in FY23, underscores Gensol's exceptional performance and its ability to capitalize on the growing opportunities in these industries.

The company has a market cap of over Rs 3,600 crore and as of March 31, 2023, the company’s order book stands at Rs 1,783 crore. As of March 31, 2024, the promoter group - Gensol Ventures Private Limited bought 11,000 shares at Rs 797 per share and increased their stake to 62.62 per cent compared to 62.60 per cent in December 2023.

The shares of the company ex-traded bonus shares in the ratio 2:1 on October 17, 2023. The stock gave multibagger returns of 170 per cent in just 1 year and a whopping 5,000 per cent in 3 years. Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.