Rs 1,000 crore order book: This multibagger small-cap company aims to operate in the renewable energy sector; acquired 99.99 per cent of newly incorporated company!

The stock gave multibagger returns of 200 per cent in just 1 year and a whopping 3,800 per cent in 3 years.

Gensol Engineering Limited has acquired nearly all the shares (9,999 out of 10,000) of Gensol Clean Energy Private Limited, a newly incorporated company, for a cash consideration of Rs. 99,990. This makes Gensol Clean Energy a wholly-owned subsidiary of Gensol Engineering. The acquired company aims to operate in the renewable energy sector, focusing on the generation, distribution, and production of power using various sources like solar and wind energy.

Additionally, Gensol Engineering Ltd has secured a major 70 MW (140 MWh) portion of a 250 MW battery storage project from Gujarat Urja Vikas Nigam Limited (GUVNL). This ₹450 crore project will provide on-demand electricity to Gujarat's power grid and marks Gensol's entry into the growing battery storage market, positioning them to meet the rising global demand for reliable energy solutions.

Gensol Engineering Ltd is a company offering a variety of solar and electric vehicle-related services, including engineering, procurement, and construction (EPC) for solar projects, operation and maintenance of solar assets, manufacturing of electric vehicles, and leasing of electric cars and cargo. The shares of the company have traded ex-bonus twice in the ratios 2:1 and 1:3 with ex-dates as October 17, 2023, and October 11, 2021, respectively.

Gensol Electric Vehicles, a subsidiary of Gensol Engineering, has received official approval for its new electric car from India's automotive regulatory body. This marks a major step towards launching the car in India, which will be manufactured in a new plant with a capacity of 30,000 cars per year. The car boasts several modern features and is designed to be compact, efficient, and technologically advanced. Additionally, Gensol secured contracts for two solar power projects, further demonstrating their commitment to clean energy solutions.

In Q3FY24, the company's revenue surged 335 per cent to Rs 227 crore, driven by strong growth across all segments. This resulted in a significant improvement in profitability, as the company turned a net loss of Rs 2 crore in Q3FY23 into a net profit of Rs 12 crore in Q3 FY24, marking a per turnaround (734 per cent).

The company's performance for the first nine months of FY24 has been strong, with all key financial metrics showing significant growth compared to the same period in FY23. Revenue nearly tripled to Rs 584 crore, and PAT more than doubled to Rs 34 crore, demonstrating strong growth across all business segments and improved operational efficiency.

The company has a market cap of over Rs 3,000 crore and as of December 31, 2023, the company’s order book stands at over Rs 1,000 crore. As of December 2023, FIIs bought 4,84,721 shares and increased their stake to 2.94 per cent compared to 2.57 per cent in September 2023 while DIIs increased their stake to 0.84 per cent in December 2023 compared to 0.75 per cent in September 2023.

An ace investor, Mukul Agrawal owns 5,70,000 shares or 1.51 per cent stake in the company. The stock gave multibagger returns of 200 per cent in just 1 year and a whopping 3,800 per cent in 3 years. Investors should keep an eye on this Small-Cap stock.

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