Upper Circuit & 52-week high Alert: High ROE & high ROCE multibagger energy stock bags new order worth Rs 325 crore from Jodhpur Vidyut Vitran Nigam Ltd

The stock gave multibagger returns of 333 per cent from its 52-week low of Rs 271.90 per share.

Today, one of the Top Gainers on NSE, shares of Oriana Power Ltd hit 20 per cent upper circuit and a fresh 52-week high of Rs 1,179.40 per share from its previous closing of Rs 982.85 per share. At the closing bell, shares of the company were trading at Rs 1,136 per share, up 15.58 per cent.

Founded in 2013, Oriana Power Limited specializes in providing low-carbon solar energy solutions to industrial and commercial clients, including on-site installations like rooftop and ground-mounted systems, as well as off-site solar farms.

The sudden rise in the stock price was due to Oriana Power Limited being awarded a 25-year contract to build a 76.62 MW (AC) solar power plant by Jodhpur Vidyut Vitran Nigam Limited, Churu, Rajasthan. This project, with a tentative construction cost of Rs 325 crore (including GST), will be executed by a separate entity set up by Oriana Power and is expected to benefit from a Central Financial Assistance (subsidy) of Rs 17.27 crore. Oriana Power's role in this domestic project will be the engineering, procurement, and construction (EPC) as well as the commissioning of the solar power plant, which is expected to be completed within 12 months and then be operational and maintained for the next 25 years.

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Earlier, A wholly owned subsidiary of Oriana Power, TRUERE 100 ENERGY PRIVATE LIMITED, was awarded a contract to develop a 5 MWp solar power plant for a cement manufacturer in Bagalkot, Karnataka. This 25-year project will generate monthly recurring revenue for Oriana Power and is expected to be completed in the current financial year.

According to the financials, Oriana Power has a market cap of over Rs 2,000 crore. In FY23, the net sales increased by 9 per cent to Rs 136 crore, operating profit increased by 67 per cent to Rs 20 crore and net profit increased by 57 per cent to Rs 11 crore compared to FY22.

The shares of the company have an ROE of 46.8 per cent and an ROCE of 27.1 per cent. The stock was listed on NSE at Rs 317.1 per share with a lot size of 1,200 shares. The stock gave multibagger returns of 333 per cent from its 52-week low of Rs 271.90 per share. Investors should keep an eye on this energy stock.

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