Rs 147 to Rs 7267: Shares of this carbon credit company became 49x in just 14 months!

The World Bank and International Monetary Fund (IMF) are some of the esteemed clients of the company.

EKI Energy Services Ltd, a global service provider in the energy, carbon credit and quality management space, has delivered multibagger returns to its investors in the last 14 months. The company’s shares got listed in April 2021, and they have risen exponentially ever since.  

An investment of Rs 1 lakh in this stock last year would have turned to Rs 12.86 lakh today while the same investment on the day the company’s shares got listed would have turned to Rs 49.43 lakh!  

In contrast, the S&P BSE Sensex has delivered only 5.6 per cent and 10.53 per cent in the last 12-month and 14-month period.  

What does the company do? 

EKI Energy Services offers carbon sustainability advisory services to a wide spectrum of projects such as bio-methanation, renewable power, waste management, energy efficiency and water purification. Apart from this, the company also provides advisory services for the validation, registration, monitoring, verification and issuance and supply of eligible carbon credits. The company ventured into the carbon credit supplying business in 2014.  

What are carbon credits? 

A carbon credit is a certificate, which grants its holder the right to emit, over a certain period, carbon dioxide or other greenhouse gases. One carbon credit is equal to one ton of carbon dioxide.  

The introduction of industry-specific emission reduction guidelines such as CORSIA have driven the global demand for carbon credits. EKI Energy’s target market comprises 137 countries that have committed to work toward net-zero emissions by 2050 and to enhance their international climate pledges. Even India has pledged to achieve net-zero emissions by 2070.  

Looking at the financial performance, in FY22, the company’s topline grew 843.5 per cent YoY to Rs 1800 crore. The revenue growth came on the back of strong business momentum, which was driven by higher demand and increasing carbon credit prices. The EBITDA grew by a whopping 1936.9 per cent YoY to Rs 515.8 crore whereas the PAT grew 1950 per cent YoY to Rs 383.4 crore.  

At 1.40 pm, the shares of EKI Energy Services Ltd were trading at Rs 7,289.95 apiece on BSE.