Under Rs 50: Shares of this solar company rally 10 per cent and hits the upper circuit in morning session, do you own it?

The company's net profit grew by 267 per cent YoY during the third quarter of FY24.

Surana Solar is engaged in the business of manufacturing Solar Photovoltaic Modules, generating Wind and Solar Power energy, and trading other solar-related products. Today the company experienced a significant surge in its share price. 

At the start of the day's trading session, the stock opened at Rs 42 per share, compared to the previous day's closing figure of Rs 38.57 per share on the BSE. As of the time of writing this article, the shares are currently at Rs 42.42 per share on the BSE. The scrip reached the upper circuit price limit of 10 per cent, reflecting strong demand in the market with no sellers willing to offer shares, resulting in potential buyers being unable to make purchases, leading to disappointment among buyers. 

The company's current market capitalisation stands at Rs 208.73 crore, and the stock has generated an impressive return of around 146 per cent in the past year and a multibagger return of around 480 per cent in the past three years. 

Business Overview 

Surana Solar Limited is an India-based conglomerate company involved in the areas of solar and wind power, telecommunications, metal processing, and infrastructure. The company engages in the manufacturing of solar photovoltaic (SPV) modules, the generation of wind and solar power energy, and the trading of other solar-related products. The company operates through two segments: The solar Products segment, engaged in the manufacturing and trading of SPV modules, and the Wind Power segment, involved in the generation of wind power and solar power energy. Surana Solar Limited has commissioned four Grid Connected Solar Power Plants in Gujarat and Telangana, each with a capacity of five MW.  

Financial Performance

In Q3 FY24, Surana Solar reported a revenue of Rs 4.40 crore, compared to Rs 13.90 crore in the same quarter last year. The operating profit of the company stands at Rs 0.50 crore, with an operating profit margin of 11.36 per cent compared to Rs 0.69 crore in the same quarter last year. The net profit of the company stood at Rs 0.11 crore in the December quarter, a significant improvement compared to a net profit of Rs 0.03 crore representing a gain of around 266 per cent YoY.

In terms of ownership, the promoters hold 62.31 per cent of the company, while FIIs and DIIs hold 0.01 per cent and 0.03 per cent, respectively. The remaining 37.65 per cent is held by public shareholders. 

Investors must keep this stock on their radar.

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