Solar Penny Stock Under Rs 60 Hit Upper Circuit As Company Announces Turnaround Net Profit And Raising Of Funds Up To Rs 200 Crore

Solar Penny Stock Under Rs 60 Hit Upper Circuit As Company Announces Turnaround Net Profit And Raising Of Funds Up To Rs 200 Crore

Kiran Shroff

From Rs 21.37 (52-week low) to Rs 58.30 per share, the stock gave multibagger returns of 173 per cent and a whopping 900 per cent in 5 years.

On Monday, shares of Surana Solar Ltd hit a 5 per cent upper circuit to Rs 58.30 per share from its previous closing of Rs 55.33. The stock’s 52-week high is Rs 67 and its 52-week low is Rs 21.37. The shares of the company saw a spurt in volume by more than 2 times.

Surana Solar Ltd (SSL), incorporated in 2006, is a prominent player in the solar energy industry, engaged in manufacturing solar photovoltaic modules, generating wind and solar power, and trading solar-related products. As a part of the Surana Group, SSL specializes in EPC of power projects on a turnkey basis, offering grid-connected and grid-off photovoltaic power plants. With its expertise in engineering, procurement, and construction, SSL undertakes projects ranging from 1 MW to 15 MW.

Quarterly Results: The net sales increased by 370.55 per cent to Rs 1,454.01 lakh in Q2FY25 compared to Q2FY24. The company reported a turnaround net profit of Rs 32.69 lakh in Q2FY25 compared to a net loss of Rs 145.27 lakh in Q2FY24: increasing 123 per cent.

Half-Yearly Results: The net sales increased by 649 per cent to Rs 2,622.13 lakh in H1FY25 compared to H1FY24. The company reported a turnaround net profit of Rs 60.47 lakh in H1FY25 compared to a net loss of Rs 121.10 lakh in H1FY24: increasing 150 per cent.

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The Board of Directors of the Company approved the raising of Rs 200 crore through the issuance of Equity Shares, Convertible Instruments, or other securities, subject to shareholder and regulatory approval. These funds will be procured through private placement, qualified institutions placement, preferential issues, or any other suitable method. Additionally, the Board approved the formation of Surana Technologies Private Limited as a wholly-owned subsidiary to undertake various solar energy projects. This strategic move aligns with the company's commitment to sustainable energy solutions and expands its business operations into the renewable energy sector.

Earlier, the company awarded a contract to develop solar photovoltaic power generating stations with an aggregate capacity of 54 MW (AC) under Maharashtra State Electricity Distribution Co. Ltd.'s Mukhyamanatri Saur Krushi Vahini Yojna 2.0 scheme. This project will be located in Maharashtra and is part of the PM-KUSUM Scheme. The contract terms include a tariff of Rs 2.99 per kWh, a subsidy of Rs. 1.03 Crore per MW, a 12-month commissioning deadline, and a 25-year contract period. Surana Solar Limited will supply the power to MSEDCL, and the project is estimated to cost Rs. 189 Crores. Additionally, Surana Solar has secured a Rs. 4.25 Crore order from Flic Microwaves Private Limited for defence-related electronics components.

From Rs 21.37 (52-week low) to Rs 58.30 per share, the stock gave multibagger returns of 173 per cent and a whopping 900 per cent in 5 years. Investors should keep an eye on these Penny Stocks.

Disclaimer: The article is for informational purposes only and not investment advice. 

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