Rs 5,025 Crore Order Book: Solar EPC Company Acquired & Incorporates A New Subsidiary For Business Expansion Into Generation Power Or Electric Energy
The stock gave multibagger returns of 2,300 per cent in 3 years and has delivered good profit growth of 52.1 per cent CAGR over the last 5 years with a PE of 54x and an ROE of 22 per cent.
Gensol Engineering Limited has acquired 100 per cent of Hari Shakti Energy Private Limited, a newly incorporated company, by subscribing to all its equity shares for Rs 1,00,000. This acquisition aligns with Gensol's goal of expanding into the renewable energy sector. Hari Shakti Energy will now operate as a wholly-owned subsidiary of Gensol, enabling it to generate, develop, and distribute power using renewable sources like wind, solar and battery storage.
The acquisition does not involve any related party transactions, as Gensol is the sole shareholder of Hari Shakti Energy. The target company's primary business is the generation and distribution of renewable energy. This acquisition is strategic for Gensol, allowing them to enter the renewable energy market and contribute to sustainable energy solutions.
Earlier, the company partnered with Matrix Gas & Renewables to develop India’s first and largest Green Steel production facility. This facility, utilizing 100 per cent Green Hydrogen, is one of three pilot projects sanctioned under the National Green Hydrogen Mission. The project’s total capex is estimated at Rs 321 crore, with the Government of India providing 50% capex incentives. The facility will employ DRI vertical shaft technology to convert iron ore into sponge iron, replacing traditional fossil fuel-based methods that emit CO2. Matrix will oversee the entire project lifecycle, including land acquisition, environmental assessments, and all critical phases of design, engineering, procurement, and logistics. This project aligns with the Government of India’s vision for a sustainable future, reinforcing the nation’s commitment to green energy solutions and enhancing its industrial capabilities.
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About Gensol Engineering Ltd
Established in 2012, Gensol Engineering Limited, part of the Gensol group, provides comprehensive engineering, procurement and construction (EPC) services for solar power plants globally, with a proven track record of installing over 770 MW of solar capacity across ground-mounted and rooftop installations. Committed to sustainability, Gensol is revolutionizing the Indian EV industry by setting up a state-of-the-art manufacturing facility in Pune for electric three-wheelers and four-wheelers, capable of producing 30,000 vehicles annually. Additionally, they offer extensive EV leasing solutions for passenger, fleet and cargo needs, having already leased over 3,000 EVs with plans to expand significantly. Headquartered in India, Gensol specializes in Solar EPC services, having built solar power plants exceeding 590 MWp globally and is dedicated to advancing clean energy and electric mobility solutions.
The promoters of the company bought 53,945 shares and increased their stake to 62.77 per cent in June 2024 compared to 62.63 per cent in March 2024. The company has a market cap of over Rs 3,000 crore and as of June 2024, the company has an order book of Rs 5,025 crore. The shares of the company ex-traded bonus shares in the ratio 2:1 on October 17, 2023. The stock gave multibagger returns of 2,300 per cent in 3 years and has delivered good profit growth of 52.1 per cent CAGR over the last 5 years with a PE of 54x and an ROE of 22 per cent.Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.