3,000 per cent returns in this multibagger engineering stock: Board announces bonus shares; scrip hit upper circuit!
The stock gave multibagger returns of 3,000 per cent in just 2 years whereas BSE Sensex Index is up by 12 per cent.
Gensol Engineering Limited informed that the Board of Directors of the company has approved a bonus issue in the ratio 2:1 i.e., 2 equity shares for every 1 equity share held by the company's shareholders as on the record date (to be determined by the Board of Directors). The estimated date is within 2 months from the date of approval of the Board i.e., on or before November 04, 2023.
Additionally, the company acquired 58,779 equity shares of Scorpius Trackers Private Limited (Scorpius) constituting 54.38 per cent of shares capital and voting rights in Scorpius. By virtue of this Scorpius is now a subsidiary company of Gensol Engineering Ltd. This acquisition strengthens Gensol Engineering's position as a leading provider of end-to-end renewable energy solutions and is a part of its strategy to expand its portfolio by spreading wings across new geographies.
Earlier, the company made its mark in the international solar market with the announcement of its two turnkey EPC projects in Dubai. The projects worth Rs 101.6 crore will help the company expand its presence in the Middle East.
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Gensol Engineering Limited provides renewable energy project development services. The company constructs solar plants in India. The company had a market cap of over Rs 2,400 crore. The shares of the company have an ROE of 54.7 per cent and a ROCE of 46.3 per cent.
The company reported positive numbers in its half-yearly and annual results. Net sales increased by 66.22 per cent to Rs 210.77 crore and net profit increased by 32.61 per cent to Rs 11.67 crore in H2FY23 over H2FY22. Net sales increased by a whopping 144.78 per cent to Rs 392.65 crore and net profit increased by a strong 122.93 per cent to Rs 24.79 crore in FY23 over FY22.
The company's strong financial performance is a result of its focus on innovation, efficiency, and customer satisfaction. The company is well-positioned for continued growth in the future.
On Friday, shares of Gensol Engineering Ltd surged 5 per cent upper circuit to Rs 1,987.35 per share from its previous closing of Rs 1,892.75. The shares of the company saw a spurt in volume by more than 3 times on BSE.
The stock gave multibagger returns of 3,000 per cent in just 2 years whereas BSE Sensex Index is up by 12 per cent. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.