3,500 per cent returns and Rs 531 crore order book: This multibagger engineering company bags new order of 500-kW for NHPC’s Kargil Green Hydrogen Mobility Station!

The stock gave multibagger returns of 150 per cent in just 6 months; 3,250 per cent in 2 years and a whopping 3,500 per cent in 3 years.

Indian stock markets started a day in the green, Wednesday with the BSE Sensex Index up by 0.22 per cent at 65,818 and the NSE Nifty Index up 0.20 per cent at 19,716.

Along the market is trading green, this multibagger stock is bucking the trend and trading in the green as the company leads as the lowest bidder for NHPC’s Kargil Green Hydrogen Mobility Station EPC Project. Today, shares of the company surged 2.97 per cent to Rs 830 per share from its previous closing of Rs 806.1.

The stock we would be discussing is none other than Gensol Engineering Ltd.

Gensol Engineering Ltd. (BSE: 542851) (NSE: GENSOL), a frontrunner in the renewable energy and electric mobility sectors, has been identified as the lowest bidder for Engineering, Procurement and Commissioning (EPC) contract for a groundbreaking green hydrogen-based mobility station in Kargil, Ladakh. Gensol has secured this project by demonstrating its techno-commercial competency in collaboration with Matrix Gas & Renewables Ltd. (Matrix). This notable project, to be commissioned by the National Hydroelectric Power Corporation Ltd. (NHPC), is aimed at operating buses powered by hydrogen fuel cells within the region. This initiative is in line with the government's ambitious targets for green hydrogen energy.

Gensol will develop a 500-kW grid-connected, ground-mounted solar power project that will provide energy to the hydrogen refuelling station. Matrix will oversee the EPC of dual electrolysers, each with a capacity of 30 NM3. The scope of work includes the entire balance of plant EPC encompassing the green hydrogen system installation, storage, and dispensing facilities, in addition to the requisite civil and electrical infrastructure for the integrated solar and hydrogen operation in Ladakh. This project will be the first of its kind in India and will span the complete green hydrogen supply chain.

Gensol will execute the project for NHPC, ensuring a minimum green hydrogen purity of 99.97 per cent. The project is expected to be completed within 12 months of the issuance of the work order. The NHPC project win is expected to strengthen Gensol's and Matrix's market standing, enhance their technical prowess, and open new avenues for growth and collaboration in the renewable energy sector. Gensol & Matrix will continue to collaborate in the Green Hydrogen domain.

The company experienced significant growth in its financial performance in the second quarter and first half of FY24 compared to the same periods in FY23. Net sales increased by 146.45 per cent and 88 per cent, respectively, while net profit increased by 51.1 per cent and 24 per cent, respectively. For the full year FY23, net sales and net profit increased by 144.78 per cent and 122.93 per cent, respectively, compared to FY22.

Ace investor Mukul Agarwal holds a significant stake (1.64 per cent) in the company and has made substantial gains from the stock's recent price appreciation. The company is well-positioned for continued growth, as it has secured multiple orders for EPC and other related work. As of September 30, 2023, the company’s order book stands at Rs 531 crore.

The company had a market cap of over Rs 3,000 crore. The shares of the company have an ROE of 21.4 per cent and an ROCE of 12.4 per cent. The stock gave multibagger returns of 150 per cent in just 6 months; 3,250 per cent in 2 years and a whopping 3,500 per cent in 3 years.

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