This Microcap Solar Panel Manufacturer has generated multibagger 529 per cent for its investors. Do you own it?

With a market capitalisation of just Rs 498 Crore, the stock has displayed remarkable performance delivering a 75 per cent return over the last month.

The stock opened the day at Rs 246 which is 2.5 per cent up from the previous day’s closing price of Rs 239.95 on the BSE and finally, the stock concluded the day at Rs 239. 

The stock’s 52-week highs and lows are Rs 247.80 and Rs 72.55. Upon analysing today's share volumes, it can be observed that there has been a significant increase of more than 1.07 times its average daily volumes on the BSE.   

With a market capitalisation of just Rs 498 Crore, the stock has displayed remarkable performance in recent times, delivering a 75 per cent return over the last month and an impressive 121 per cent return year to date. 

Business Overview 

Insolation Energy Ltd, established in 2015, is a specialized manufacturer of high-efficiency solar panels and modules in various sizes. Their cutting-edge 200 MW SPV Module manufacturing unit in Jaipur spans over 60,000 sq. ft and is equipped with advanced machinery. 

The company's core activities include solar PV module manufacturing and trading of Solar Power Conditioning Units (PCU) and Lead Acid Batteries. Their PCUs harness solar and grid power to charge batteries, storing energy from solar panels. Additionally, they offer comprehensive solar energy solutions and serve as an integrated provider of engineering, procurement, and construction (EPC) services. It has established a strong presence in India through a wide network of over 30 distributors, showcasing its geographically diversified reach. 

IPO Flashback 

Let's recapitulate the subscription history of the company from September 29, 2022, which is the final day of IPO closing, the Insolation Energy IPO witnessed an overwhelming response with a subscription rate of 192.79 times. Among the different categories of investors, the retail category was subscribed 235.55 times, and the NII category was subscribed 150.02 times.  

The IPO of Insolation Energy had a price band of Rs 36 to Rs 38 per share, and the lot size was set at 3000 shares. The total issue size amounted to Rs 22.16 Crore.   

Eventually, the final issue price was determined at Rs 38 per share. The stock has delivered a remarkable multibagger return of approximately 529 per cent based on its final price. 

Financial Performance  

If we check the company’s financials, in FY23 annual revenue experienced a substantial increase of 29.76 per cent YoY, rising from Rs 215 Crore to Rs 279 Crore. The operating profit of the company stands at Rs 18 Crore, accompanied by an operating profit margin of 7 per cent. Furthermore, the net profit of the company amounts to Rs 11 Crore.  

The company's return on capital employed (ROCE) and return on equity (ROE) are at 31.4 per cent and 48.3 per cent, respectively. 

Regarding ownership, the promoters of the company possess 69.89 per cent of the company's shares. Whereas both foreign institutional investors (FIIs) and domestic institutional investors (DIIs) do not hold any stakes in the company. The remaining portion, which accounts for 30.11 per cent, is owned by public investors.