Small-Cap Company Secures First Solar Power Purchase Agreement from Maharashtra Government – Recently, Signed MoU with European Giant to Establish Arms and Ammunition Facility in India!
The company’s shares have delivered an impressive multibagger return of over 475 per cent in just 2 years.
Tembo Global Industries Ltd, a leading player in the industrial sector, has announced its first Power Purchase Agreement (PPA) for a 124 MW solar power project with the Maharashtra state government.
This milestone agreement highlights the company's commitment to sustainable energy solutions, with a project cost estimated at Rs 595 crores. The project is expected to be completed within the next 18 months, with the PPA spanning 25 years post-completion.
Tembo Global's entry into the solar power sector reflects its strategic move to diversify and invest in renewable energy sources. Known for its expertise in engineering mechanics and project execution in industries such as oil and gas, chemicals, and construction, the company is now taking an active role in addressing the increasing demand for clean energy.
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Entered Solar MEP Segment
In October 2024, Tembo Global Industries Ltd announced its entry into the Solar Mechanical, Electrical, and Plumbing (MEP) segment. Supported by a team of experienced engineers, the company announced its plans for procurement activities and to participate in Power Purchase Agreement (PPA) tenders with government bodies. Leveraging its expertise in engineering mechanics, design load calculations, and project execution, Tembo was well-positioned to capitalize on the rapidly growing solar energy sector.
Strategic Partnership in Defence Manufacturing
In September 2024, Tembo Global Industries Ltd announced a major strategic partnership with a prominent European company to establish a cutting-edge arms and ammunition manufacturing facility in India. This newly signed MoU represents a significant milestone for Tembo Global as it ventures into the defence manufacturing sector, backed by a well-established international partner.
A key component of the agreement is a strategic buy-back arrangement, under which the European company will purchase a substantial portion of the firearms produced by Tembo Global. This move strengthens Tembo Global's presence in the defence industry and bolsters its operational capabilities.
Company Overview
Tembo Global Industries Ltd is a Small-Cap manufacturer and fabricator of metal products used in pipe support systems, fasteners, anchors, HVAC, anti-vibration systems, and equipment for industrial, commercial, utility, and OEM installations. The company specializes in the fabrication and installation of ductile pipes, HDB pipes and fittings, and MS plates. Its products are certified and approved by Underwriter’s Laboratory Inc. (USA) and FM Approvals (USA) for fire sprinkler system installations.
Stock Performance
Today, the shares of Tembo Global Industries Ltd hit the upper circuit and closed at around Rs 489.80 per share on the NSE. The company’s current market capitalization stands at Rs 543.86 crore. Additionally, the shares have delivered an impressive return of around 125 per cent in the past 1 year only.
Financial Performance
As per the Quarterly Results, in the Q1 FY25, the company recorded a revenue of Rs 128.41 crore compared to Rs 79.98 crore. The operating profit stood at Rs 8.36 crore. The net profit stood at Rs 5.37 crore compared to a profit of Rs 1.68 crore. Looking at the annual performance, the company generated a revenue of Rs 432 crore in FY24. The operating profit for FY24 was Rs 19 crore with a net profit of Rs 14 crore compared to a net profit of Rs 6 crore in FY23.
Disclaimer: The article is for informational purposes only and not investment advice.