Multibagger solar EPC & EV manufacturing company allotted additional 250 MW for GUVNL’s Battery Energy Storage Project taking its total BESS order book to over Rs 3,100 crore

The stock gave multibagger returns of 215 per cent in just 1 year and a whopping 6,200 per cent in 3 years.

Today, shares of Gensol Engineering Ltd surged 4.50 per cent to Rs 1,061.80 per share from its previous closing of Rs 1,016.05 per share. The stock’s 52-week high is Rs 1,377.10 per share while it gave multibagger returns of 219.5 per cent from its 52-week low of Rs 332.33 per share.

Gensol Engineering Ltd. has secured a major contract for a standalone Battery Energy Storage System (BESS) project with Gujarat Urja Vikas Nigam Limited (GUVNL). This 250 MW/500 MWh project will provide a significant boost to Gujarat's power grid by supplying electricity on-demand during peak and off-peak hours. This will be particularly beneficial for utilizing renewable energy even beyond sunshine hours. The BESS system will be capable of delivering 500 MWh of energy for two charging cycles daily, ensuring a reliable source of power. GUVNL also has the option to expand the project capacity to 500 MW/1000 MWh, potentially generating Rs 2,680 crore over the 12-year contract period.

This project win highlights Gensol's expertise in multiple areas. They have a proven track record in engineering, procurement and construction (EPC) services within the solar power industry. Additionally, Gensol is strategically positioning itself within the emerging Advanced Chemistry Cell-based energy storage value chain. This project demonstrates the growing importance of standalone BESS in India, driven by government support for renewable energy integration and grid stability. The above project is worth Rs 1,340 crore. With an order book of Rs 1,783 crore on March 31, 2024, the company's total order book reaches Rs 3,123 crore.

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Additionally, The Board of Directors of the company approved the allotment of 61,83,735 convertible warrants at an issue price of Rs 871 each, for a total of Rs 5,38,60,33,185. These warrants were allotted preferentially to non-promoters and the company's promoter, Jasminder Kaur. Non-promoters were allocated 46,58,735 warrants and Jasminder Kaur was allocated 15,25,000 warrants. The allottees have paid 25% of the issue price, which is Rs 217.75 per warrant, for a total of Rs 1,34,65,08,296.25.

In a separate transaction, the company's promoter and managing director, Anmol Singh Jaggi, acquired 53,945 shares on June 4, 2024 for Rs 4,77,44,327.75. This increased his stake in the company from 79,64,766 shares (21.03 per cent) to 80,18,711 shares (21.17 per cent). As a result of this acquisition and the allotment of warrants, the total promoter and promoter group holding rose from 2,37,17,306 shares (62.62%) to 3,78,72,897 shares (62.77 per cent). This increase in promoter holding reflects their strong commitment to the company's future growth.

About Gensol Engineering Ltd

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.

According to Quarterly Results, the net sales increased by 147 per cent to Rs 412 crore, EBITDA increased by 188 per cent to Rs 92 crore and profit after tax increased by 168 per cent to Rs 20 crore in Q4FY24 compared to Q4FY23. In its annual results, the net sales increased by 147 per cent to Rs 996 crore, EBITDA increased by 218 per cent to Rs 260 crore and profit after tax increased by 129 per cent to Rs 53 crore in FY24 compared to FY23.

The company has a market cap of over Rs 3,900 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 215 per cent in just 1 year and a whopping 6,200 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.