Multibagger Solar Stock In Focus As Company Allots 3,83,500 shares & 94,750 warrants and Acquisition of substantial stake in Aplus Solar Cell Pvt Ltd
The stock gave multibagger returns of 293 per cent from its 52-week low of Rs 140 per share.
Australian Premium Solar Ltd (APS) has proposed to increase its authorized share capital from Rs 20 crore to Rs 22 crore by issuing additional equity shares. The company also intends to issue up to 3,83,500 equity shares to non-promoter shareholders at a premium of Rs 517 per share through a preferential issue. Additionally, APS plans to issue 94,750 warrants to promoter shareholders, each warrant entitling the holder to subscribe to one equity share at a premium of Rs 517 per share. These proposals are subject to the approval of the company's shareholders.
APlus Solar Cell Private Limited, a newly incorporated company with an authorized and paid-up capital of Rs. 1,00,000, is set to be acquired by the parent company. The acquisition, although involving related parties, is proposed to be conducted at arm's length. The primary objective of this acquisition is to expand the parent company's business into the manufacturing of primary and rechargeable batteries, solar cells, and related products. The acquisition is expected to be completed by January 31, 2025, with a cash consideration of Rs. 51,000 for a 51% stake in the subsidiary.
Furthermore, the company secured substantial new business, with purchase orders totalling Rs 56,52,60,500 from a domestic client. These orders encompass a variety of solar products, including 500W, 520W, and 540W solar panels, as well as 144-cell monocrystalline solar PV modules of various wattages. The company is poised to fulfil these orders within a three-month timeframe. Before this, APS had secured additional purchase orders worth Rs 36,43,75,937 from another domestic client. These orders include 540WP Mono Bifacial Solar Panels (Non-DCR), 540WP Bifacial Solar Panels (DCR), 580WP Topcon Solar Panels (Non-DCR), and a range of APS Solar Inverters (3.3kW to 100kW). The execution of this contract is scheduled between December 2024 and March 2025.
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About the Company
Australian Premium Solar Ltd, a leading global solar manufacturer, is driving India's renewable energy transition. With a focus on high-quality solar panels, inverters, water pumps, and EPC services, the company is well-positioned to capitalize on India's growing solar market. Recent financial results and strategic initiatives, such as the acquisition of land for a new manufacturing facility, underscore their commitment to innovation, sustainability, and domestic growth.
Results: The financial performance of the company has significantly improved in H1FY25 compared to H1FY24. Total income has increased by 102.09 per cent from Rs 81.27 crore in H1FY24 to Rs 164.24 crore in H1FY25. This revenue growth was driven by a strong increase in EBITDA, which rose by 357.71 per cent from Rs 4.26 crore to Rs19.51 crore. Profit after tax (PAT) also saw a substantial growth of 401.56 per cent, increasing from Rs 2.61 crore to Rs 13.08 crore.
The company have a market cap of over Rs 1,000 crore. The shares of the company have an ROE of 42.5 per cent and an ROCE of 51 per cent. The stock gave multibagger returns of 293 per cent from its 52-week low of Rs 140 per share. Investors should keep an eye on this small-cap solar EPC stock.
Disclaimer: The article is for informational purposes only and not investment advice.