10:51 rights issue & Target for 1-GW capacity: LIC-backed multibagger penny stock under Rs 25 hit 10 per cent upper circuit on September 16
The stock is up by 98.2 per cent from its 52-week low of Rs 11.17 per share and gave multibagger returns of 670 per cent in 3 years & a whopping 1,000 per cent in 5 years.
On Monday, shares of this LIC-Backed company ended the trading session at Rs 22.22 per share, after being locked in a 10 per cent upper circuit from its previous closing of Rs 20.20 with a spurt in volume by more than 6.25 times in BSE. The stock is up by 98.2 per cent from its 52-week low of Rs 11.17 per share and gave multibagger returns of 670 per cent in 3 years & a whopping 1,000 per cent in 5 years.
The stock name is Orient Green Power Company Limited.
Orient Green Power Company Limited is a leading renewable energy company focused on wind power generation. The company has a diversified portfolio of wind energy power plants strategically located across India, including Tamil Nadu, Karnataka and Gujarat. By developing, owning, and operating these plants, Orient Green Power can generate and sell clean, sustainable electricity to the grid.
The company is committed to expanding its renewable energy capacity and has set a target of reaching 1 GW (1,000 MW) of installed capacity. To achieve this goal, Orient Green Power is actively working on increasing its power generation capacity through new projects and initiatives. Additionally, the company is focused on reducing its interest costs and debt levels through refinancing and capital-raising efforts, such as the ongoing Right Issue.
Orient Green Power Company Limited (the Company) has announced plans to issue up to 19,23,07,692 new equity shares for Rs 13 per share. The record date for the rights issue was Tuesday, August 13, 2024 and the rights issue closed on Friday, September 13, 2024. Eligible shareholders will receive 10 rights shares entitlement for every 51 shares held on the record date.
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According to Quarterly Results, the net sales increased by 76.1 per cent to Rs 63.44 crore in Q1FY25 compared to net sales of Rs 36.02 crore in Q4FY24. The company reported a turnaround story with a net profit of Rs 6 crore in Q1FY25 compared to a net loss of Rs 25.25 crore in Q4FY24, an increase of 123.8 per cent. In its annual results, the company reported net sales of Rs 271 crore and net profit of 38 crore in FY24.
The company has achieved significant financial improvements, including a reduction in debt, a strong profit growth of 21.5 per cent CAGR over the past five years, a decrease in debtor days from 154 to 110 days, and a reduction in working capital requirements from 122 days to 68.1 days. As of June 2024, Life Insurance Corporation of India (LIC) owns a 1.57 per cent stake in the company. Investors should keep an eye on this power-generation small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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