Places wind turbine order: Multibagger stock with high ROE and ROCE; surges over 4 per cent!

The stock has gained momentum in the past 1 year as it has given multibagger returns of more than 234 per cent.

During the morning session, the Sensex and Nifty witnessed positive momentum, both registered a rise of 0.55 per cent. Additionally, Nifty Mid-Cap and Nifty Small-Cap are also up by 0.68 per cent each.

On July 11, 2023, the shares of KP Energy Limited witnessed a significant surge of 4.99 per cent, accompanied by robust buying activity. This surge led the stock to reach the upper circuit of Rs 381.75 per share on the BSE. The rise in share price indicates investor interest and a positive market outlook for KP Energy Limited.

Today, KP Group has announced the placement of an order for 47.60 MW, which includes 17 Wind Turbines of the S133 model, to be supplied by Suzlon Energy Limited. This development has sparked excitement among investors.

Details are as follows:

• KP Group has placed a substantial wind turbine supply order, totaling 47.60 MW, with Suzlon Energy Limited.
• This order encompasses 17 S133 model wind turbines, which will be provided by Suzlon.
• KP Energy Limited, a part of KP Group, has awarded a portion of the order consisting of 7 wind turbines (19.6 MW capacity) to Suzlon, while the remaining 10 wind turbines are ordered by KPI Green Energy Limited.
• The project will be established at the Vagra site in Bharuch district, as part of the Company's Independent Power Producer segment.
• the Company's Independent Power Producer portfolio will witness a substantial increase from 18.4 MW to 38 MW upon the completion of the 19.6 MW project.

With a focus on decarbonization, the Company intends to strengthen its power generation assets and provide green energy to customers. Additionally, the Company aims to sell the generated power to Commercial and Industrial clients for captive use. This order marks a significant milestone in line with the Company's commitment to fostering a more sustainable and dependable energy landscape within the country.

Talking about KP Energy Limited, it holds a significant position as a balance of plant (BoP) solution provider in the Wind Energy industry. From the initial stages of conceptualization to the final commissioning of wind farms, the company actively participates in the entire development process. It undertakes projects principally in Gujarat.

Over the past five years, the company has showcased impressive profit growth, with compound annual growth rate (CAGR) of 87.5 per cent. Additionally, it has maintained a strong track record of return on equity (ROE) with a three-year ROE of 30.4 per cent. Additionally, Return on Capital Employed (ROCE) of 51.8 per cent, indicates that the company is generating strong returns from its capital investments.

KP Energy Limited for FY23 reported the total revenue surged to Rs 434 crore, a remarkable growth rate of 73.6 per cent compared to FY22. Operating profit rose to Rs 69 crore, up by 97.14 per cent. Net profit surged by 109.52 per cent to Rs 44 crore. The numbers boost investors confidence in the company.

The stock has gained momentum in the past 1 year as it has given multibagger returns of more than 234 per cent. Moreover, the stock has surged more than 891 per cent in the last 3 years. Keep a close eye on this trending stock.