Rs 5,025 crore order book & Promoters bought 53,945 shares in Q1: Multibagger solar EPC & electric mobility solutions provider stock to keep under the radar!
The stock gave multibagger returns of 120 per cent in just 2 years and a whopping 5,600 per cent in 3 years.
Today, shares of Gensol Engineering Ltd surged 6.81 per cent to Rs 988.85 per share from its previous closing of Rs 925.80 per share. The stock’s 52-week high is Rs 1,377.10 per share while the stock is up by 81 per cent from its 52-week low of Rs 547.55 per share. The shares of the company saw a spurt in volume by more than 2 times on BSE.
Established in 2012, Gensol Engineering Limited, part of the Gensol group, provides comprehensive engineering, procurement, and construction (EPC) services for solar power plants globally, with a proven track record of installing over 770 MW of solar capacity across ground-mounted and rooftop installations. Committed to sustainability, Gensol is revolutionizing the Indian EV industry by setting up a state-of-the-art manufacturing facility in Pune for electric three-wheelers and four-wheelers, capable of producing 30,000 vehicles annually. Additionally, they offer extensive EV leasing solutions for passenger, fleet, and cargo needs, having already leased over 3,000 EVs with plans to expand significantly. Headquartered in India, Gensol specializes in Solar EPC services, having built solar power plants exceeding 590 MWp globally, and is dedicated to advancing clean energy and electric mobility solutions.
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Gensol Engineering Limited has delivered a stellar performance in the first quarter of FY25, underlining its strong growth trajectory across multiple business segments. The company reported an 87 per cent year-on-year (YoY) increase in revenue on a standalone basis, reaching Rs 244 crore. Profit After Tax (PAT) on the standalone front surged by an impressive 165 per cent. When considering the consolidated figures, Gensol’s revenue grew by 105 per cent YoY, climbing from Rs 145 crores in Q1FY24 to Rs 297 crores in Q1FY25. The consolidated PAT for the quarter also saw a significant increase of 50 per cent, amounting to Rs 15 crore. These numbers reflect the company’s strategic focus on expanding its core businesses and tapping into new opportunities within the renewable energy and electric vehicle (EV) sectors.
The Solar EPC business, a cornerstone of Gensol’s operations, continues to thrive. Originally founded in 2012 as an advisory service, the business has evolved into one of the top 10 solar EPC players in India and ranks among the top 5 independent EPC players. The company has successfully executed solar projects across 19 states in India, including diverse installations such as rooftops, ground mounts, and floating solar projects. Gensol's international ambitions are evident through the establishment of a subsidiary in the Middle East, aiming to capitalize on the region's burgeoning solar market. With the recent acquisition of Scorpius Trackers, Gensol is now positioned to offer advanced solar tracking solutions that enhance energy throughput and shorten payback periods for its clients. The company’s solar order book, which includes Battery Energy Storage System (BESS) projects, stands at a formidable Rs 4,700 crore as of July 31, 2024, reflecting strong market demand and the company’s competitive positioning.
Gensol’s foray into the electric vehicle space is marked by significant progress in both its EV Leasing and Manufacturing divisions. The EV Leasing business, which operates under the brand name “Let’s EV,” achieved a remarkable 98 per cent YoY revenue growth in Q1FY25, generating Rs 50 crore. This business line covers the entire lifecycle of electric vehicles, including two-wheelers, three-wheelers, four-wheelers, and even large commercial vehicles and buses. On the manufacturing front, Gensol is gearing up to launch its first Made-in-India all-electric vehicle—a compact, two-door, two-seater car designed for urban markets. This vehicle, set to roll out from the company’s Greenfield plant in Chakan, Pune, has an annual production capacity of 30,000 units. With all regulatory approvals in place, including ARAI certification and OEM registration on the Vahan portal, the vehicle is currently undergoing rigorous road testing, with commercial sales expected to begin by April 2025.
Financially, Gensol Engineering is on a solid footing, with substantial improvements across key metrics. The company’s consolidated EBITDA for Q1FY25 reached Rs 89 crore, representing a 30 per cent margin, up from Rs 37 crore and a 25 per cent margin in the same quarter of the previous year. This robust EBITDA performance is expected to continue, especially with high-margin projects like BESS in the pipeline. The company’s BESS order book alone stands at Rs 3,200 crores, with the potential to generate Rs 260 crore in annual revenue over the next 12 years, boasting an EBITDA margin of 90-95 per cent.
The promoters of the company bought 53,945 shares and increased their stake to 62.77 per cent in June 2024 compared to 62.63 per cent in March 2024. The company has a market cap of over Rs 3,600 crore and as of June 30, 2024, the company’s order book stands at Rs 5,025 crore. The shares of the company ex-traded bonus shares in the ratio 2:1 on October 17, 2023. The stock gave multibagger returns of 120 per cent in just 2 years and a whopping 5,600 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.
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