Multibagger solar power stock to keep under radar as company reports a 101 per cent jump in PAT and interim dividend of Re 0.20/share

The stock gave multibagger returns of 175 per cent in just 1 year and a whopping 9,250 per cent in 5 years.

KPI Green Energy Ltd, established in 2008 as part of the KP Group, is a renewable energy leader specializing in solar power generation. They operate under the "Solarism" brand, offering a comprehensive solution for both Independent Power Producers (IPPs) and Captive Power Producers (CPPs). Their services include developing, building, owning, managing, and maintaining solar power plants across Gujarat, with a current installed capacity exceeding 445 MW. They cater to IPPs by directly generating and selling solar electricity, while also providing Engineering, Procurement, and Construction (EPC) services to CPP clients who wish to set up their solar power facilities.

KPI Green Energy Limited has made significant strides towards its renewable energy goals by successfully securing Power Purchase Agreements (PPAs) with Gujarat Urja Vikas Nigam Limited (GUVNL) for a combined capacity of 620 MWAC (917 MWDC). These projects, a 250 MWAC solar PV power project and a 370 MWAC hybrid RE power project, were both awarded through competitive bidding processes conducted by GUVNL. By undertaking these projects, KPI Green Energy is actively contributing to India's shift towards cleaner and greener energy sources, aligning with the nation's commitment to sustainable development. The company's strategic focus on renewable energy reinforces its dedication to achieving its ambitious target of 10 GW capacity by 2030.

According to Quarterly Results, the net sales increased by 67 per cent to Rs 359.68 crore and net profit increased by 101 per cent to Rs 69.84 crore in Q2FY25 compared to Q2FY24. In its half-yearly results, the net sales increased by 75 per cent to Rs 707.69 crore and net profit increased by 100 per cent to Rs 135.95 crore in H1FY25 compared to H1FY24. The Board considered, approved and declared Interim dividend at 4 per cent i.e., Re 0.20 (Twenty Paisa Only) per equity share having face value of Rs 5 each, on the equity share capital of the Company for the financial year 2024-25. The Record date for payment of this interim dividend is November 14, 2024.

The company's shares have an ROE of 30 per cent and an ROCE of 22 per cent. In September 2024, FIIs bought a 3.90 per cent stake and DIIs bought a 1.17 per cent stake and increased their stake to 9.95 per cent and 1.50 per cent respectively, compared to 6.05 per cent and 0.33 per cent respectively in June 2024. The company has a market cap of over Rs 10,000 crore with a strong order book. The stock gave multibagger returns of 175 per cent in just 1 year and a whopping 9,250 per cent in 5 years. Investors should keep an eye on this small-cap stock.

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