5,000 per cent multibagger returns & Board announces bonus shares: Can this small-cap stock be the next Suzlon Energy?

The stock gave multibagger returns of 230 per cent in 1 year, 800 per cent in 2 years and a staggering 5,000 per cent in 3 years.

A weak start for Indian markets as both the Sensex and Nifty opened in the red on January 01, 2024, with the Sensex down 0.17 per cent at 72,120 and the Nifty slipping 0.10 per cent to 21,720.

Amidst a sea of red, a Small-Cap multibagger emerged as a beacon of hope, surging 1.44 per cent to a 52-week high of Rs 1,490. This remarkable performer has rewarded investors handsomely, with multibagger returns of 230 per cent, 800 per cent, and a staggering 5,000 per cent in just one, two, and three years, respectively!

The hidden gem stock name Is KPI GREEN ENERGY LTD.

KPI Green Energy Ltd is a solar power powerhouse, operating as both an independent producer and a trusted EPC partner for captive power producers. With a market cap exceeding Rs 5,800 crore, they're a major player in India's renewable energy landscape.

The Board of Directors of the company have approved the bonus issue of shares in the proportion of 1:2 i.e. 1 bonus equity share of Rs 10 each for every 2 existing equity shares of Rs 10 each fully paid up, held by the shareholders of the company as on the record date. The Bonus shares shall be credited/ dispatched within 2 months from the date of the Board approval i.e. on or before February 29, 2023.

While Suzlon, the energy sector behemoth with a Rs 52,000 crore market cap, dominates with a 2,000 MW+ order book (including recent windfalls), the nimble KPI Green Energy Ltd, valued at Rs 5,800 crore, punches above its weight with a 600 MW+ order book, hinting at promising growth potential.

In a decisive move to fuel our growth ambitions, recently KPI Green Energy successfully raised Rs 300 crore via a QIP offering issued from December 18, 2023, to December 21, 2023. This strategic move, bolstering our paid-up equity from Rs 3.77 crore to Rs 4.02 crore, attracted esteemed QIBs including prominent mutual funds, FPIs, and financial institutions like Quant Mutual Fund, Yes Bank, and Goldman Sachs. This robust investor participation, further strengthened by increasing FII holdings (reaching 7.22 per cent in September 2023 and poised for continued growth), underscores confidence in our market-leading ROE of 53.4 per cent and ROCE of 24.7 per cent. The capital infusion fuels the next chapter of our growth journey, positioning the company's significant strides in the renewable energy landscape.

Despite its significantly smaller market cap, can KPI Energy's current 600 MW order book trajectory realistically scale to 2,000 MW in the coming years, potentially surpassing Suzlon's target with its much larger market capitalization?

Drop your thoughts in the comments below!

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