Ashish Kacholia Bought 1,21,600 Shares Of This Multibagger Solar Company; Company Had Recorded A Volume Growth Of 150 Per Cent YoY
The stock gave multibagger returns of 105 per cent in just 6 months and a whopping 720 per cent in 1 year.
On Thursday, shares of the solar company plunged 3.87 per cent to Rs 3,685.25 per share from its previous closing of Rs 3,833.65. The stock’s 52-week high is Rs 3,979.85 while its 52-week low is Rs 435.20. The stock gave multibagger returns of 105 per cent in just 6 months and a whopping 720 per cent in 1 year.
The buzzing solar company is INSOLATION ENERGY LTD.
Insolation Energy Ltd, founded in 2015, is a leading manufacturer of high-efficiency solar panels and modules. Based in Jaipur, India, the company operates a 200 MW manufacturing facility and has recently announced plans to expand its capacity to 500 MW through a subsidiary. In addition to manufacturing, Insolation Energy also provides solar power conditioning units, lead-acid batteries, and EPC services. Its major domestic customers include Livguard Energy Technologies Pvt Ltd, Livfast Batteries Pvt Ltd, Shakti Pumps India Ltd, Microtek International Pvt Ltd, Sunroof Tech Pvt Ltd, etc.
The Board of Directors of the company at its meeting approved the issuance of up to 12,23,500 equity shares at Rs 3,287 per share (including a premium of Rs 3,277) on a preferential basis to non-promoter entities for a total consideration of up to Rs 402,16,44,500. This issuance is proposed to be done in one or more tranches and is in accordance with the SEBI ICDR Regulations and applicable provisions of the Companies Act, 2013.
In the allotment, an ace investor, Ashish Kacholia’s company - Bengal Finance & Investment Pvt Ltd bought 1,21,600 shares via preferential issue for Rs 3287 per share aggregating to approx. Rs 40 crore.
Insolation Energy Ltd has demonstrated significant growth in solar panel module manufacturing, achieving a remarkable 150 per cent year-over-year volume increase. Despite declining module and cell prices, the company has successfully maintained and even improved its gross margins, leading to expanded profit margins. This achievement is attributed to a strong business model and efficient operations. To mitigate risks and ensure sustainable growth, Isolation has diversified its customer base, ensuring no single customer accounts for more than 5 per cent of revenue. This strategic approach has resulted in a reduction in net working capital days and a boost in return on capital employed.
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Building on this success, Isolation plans to further expand its operations. The company intends to increase its solar module capacity to 4GW and its aluminium frame manufacturing capacity to 12,000 MT by the end of FY25. Additionally, Isolation will establish a 1.5GW solar cell manufacturing facility within the next year. These investments are supported by strategic technology partnerships. Looking ahead, Isolation envisions reaching 6.5GW of solar modules and 3GW of solar cell manufacturing capacity within the next three years. The company aims to achieve a revenue of over USD 1 billion with a 10 per cent profit after-tax margin during this period.
Additionally, the company's wholly owned subsidiary, Insolation Green Energy Private Limited, has been awarded a significant contract to supply Solar PV Modules. The contract was granted by a domestic entity, Rays Green Energy Manufacturing Private Limited. The specific terms of the agreement include the supply of 545WP SPV Panels. The order is a domestic contract and is expected to be completed within the current financial year (FY 2024-25). The total value of the contract, including GST, is Rs 34,21,08,979.6.
Investors should keep an eye on this solar stock.
Disclaimer: The article is for informational purposes only and not investment advice.