Turnaround net profit after 3 years: Only buyers in this PFC & REC-backed multibagger power stock under Rs 20; Scrip hit upper circuit

The stock gave multibagger returns of over 100 per cent in just 6 months, 270 per cent in just 1 year and a whopping 950 per cent in 5 years.

The stock market ended the day in red on Friday after hitting an all-time high, with the benchmark Sensex down 210 points or 0.27 per cent to 79,033 and the Nifty-50 down 34 points or 0.14 per cent to 24,011. About 2,180 shares advanced, 1,725 declined and 107 were unchanged on the BSE.

Though the market was in red, shares of RattanIndia Power Limited hit a 5 per cent upper circuit to Rs 17.80 per share from its previous closing of Rs 16.96. The shares of the company saw a spurt in volume by more than 1.01 times on BSE. The stock’s 52-week high is Rs 21.13 and its 52-week low is Rs 4.31.

RattanIndia Power Limited is one of India’s largest private power generation companies, with an installed capacity of 2,700 MW thermal power plants at Amravati and Nashik (1,350 MW at each location) in Maharashtra, India. The company has a market cap of over Rs 9,500 crore and has delivered good profit growth of 58 per cent CAGR over the last 5 years.

According to Quarterly Results, the company reported net sales of Rs 914 crore in Q4FY24 whereas Rs 901 crore in Q4FY23. The company reported a net profit of Rs 10,666 crore in Q4FY24 compared to a net loss of Rs 483 crore in Q4FY23, an increase of 2,300 per cent.

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In its annual results, the company reported net sales of Rs 3,364 crore in FY24 whereas Rs 3,231 crore in FY23. The company reported a net profit of Rs 8,897 crore in FY24 compared to a net loss of Rs 1,870 crore in FY23, an increase of 575 per cent (the company reported net profit after 3 years consecutive net loss in FY23, FY22 and FY21).

Earlier, RattanIndia Power fully repaid its senior debt to international financial institutions with a new loan of Rs 1,114 crores from Kotak Mahindra Bank. The company has been steadily repaying its debt since 2019, and its operational performance remains strong.

As of March 2024, Power Finance Corporation Limited (PFC) owns a 4.38 per cent stake in the company and REC Ltd (REC) owns a 1.72 per cent stake in the company, The stock gave multibagger returns of over 100 per cent in just 6 months, 270 per cent in just 1 year and a whopping 950 per cent in 5 years. Investors should keep an eye on this Small-Cap power company.

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