Promoters bought 12,10,000 warrants: Multibagger solar stock hit back-to-back upper circuits; Gains 676 per cent in just 1 year
The stock gave multibagger returns of 676 per cent in just 1 year and a whopping 5,250 per cent in 5 years.
On Friday, shares of Websol Energy System Ltd were locked in a 5 per cent upper circuit to Rs 1,111.65 per share from its previous closing of Rs 1,058.75 per share. The stock gave multibagger returns of 676 per cent in just 1 year and a whopping 5,250 per cent in 5 years.
Websol Energy Systems Limited has allotted 12,10,000 convertible warrants to Websol Green Projects Private Limited, a member of its Promoter Group. This allotment was approved by the company's Board of Directors on September 21, 2024, following the receipt of in-principle approval from the National Stock Exchange of India Limited and BSE Limited, shareholder approval at an Extra-Ordinary General Meeting, and an upfront payment of 25% of the total consideration. The warrants are priced at Rs. 530/- each and are convertible at a ratio of 1:1 into equity shares at a premium of Rs. 520/- per equity share. This allotment complies with the Securities & Exchange Board of India (Issue of Capital & Disclosure Requirements) Regulations, 2018 and Sections 62 & 42 of the Companies Act, 2013.
Websol Energy System Limited is a leading Indian manufacturer of photovoltaic crystalline solar cells and related modules. They specialize in producing solar cells and modules for use in commercial and industrial solar energy panels. The company has made significant strides in product innovation. They have transitioned from traditional 158mm multicrystalline solar cells to advanced mono-crystalline silicon PV cells with Passivated Emitter Rear Contact (PERC) technology.
Websol's manufacturing facility is located in Falta SEZ, West Bengal, and boasts a capacity of 240 MW for cells and 250 MW for modules. The company has ambitious expansion plans, including a two-phase expansion that will add a total of 1800 MW of cell capacity and 1050 MW of module capacity. As of Q3 FY24, Websol is actively commissioning and installing its new 600 MW Mono PERC cell production capacity and 550 MW module production capacity at its Falta SEZ location. The cell line is expected to start commercial production in the second week of February 2024, and the module line is expected to start production in March 2024.
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Looking ahead, Websol is exploring the integration of TOPCON (Tunnel Oxide Passivated Contact) technology for solar cells. This technology has the potential to further increase efficiency beyond 25 per cent. While there are currently some challenges associated with TOPCON, researchers and equipment manufacturers are actively working to address these issues.
Websol Energy System Ltd. experienced remarkable growth in the first quarter of fiscal year 25 (Q1FY25). Revenue surged to Rs 112 crore, a staggering 61,900 per cent increase year-over-year (YoY). Operating profit reached Rs 44 crore, with an impressive operating profit margin of 39 per cent. Additionally, the company transformed a loss of Rs 5 crore in Q1FY24 into a net profit of Rs 23 crore in Q1FY25, representing a gain of 558 per cent YoY.
While the first quarter of FY25 was exceptional, the company's annual performance for FY24 showed mixed results. Revenue increased from Rs 17 crore in FY23 to Rs 26 crore in FY24. However, the company incurred an operating loss of Rs 8 crore and a net loss of Rs 121 crore for the entire fiscal year.
Disclaimer: The article is for informational purposes only and not investment advice.