1:2 Bonus Share & 12,000 Per Cent Returns: Solar Power Company Bags Largest-Ever Order Worth Rs 1,311 Crore from Coal India Ltd
The stock gave multibagger returns of 115 per cent in just 1 year and a whopping 12,000 per cent in 5 years.
On Tuesday, shares of KPI Green Energy Ltd gained 5 per cent upper circuit to Rs 818.20 per share from its previous closing of Rs 779.25 per share with an intraday high of Rs 818.20 per share and an intraday low of Rs 796 per share. The shares of the company saw a spurt in volume by more than 2.35 times.
KPI Green Energy has secured a significant order from Coal India Limited (CIL) to establish a 300 MWAC (405 MWDC) ground-mounted solar PV plant in Gujarat, India. This project, valued at Rs 13.11 billion or Rs 1,311 crore, will be executed on an EPC basis and will include Operation & Maintenance (O&M) services for five years. The project is strategically located in GIPCL's Solar Park, Khavda, Gujarat, close to KPI Green Energy's ongoing 240 MWDC IPP project for GUVNL. This strategic placement allows for efficient project execution and synergies between the two projects.
This landmark order represents a major milestone for KPI Green Energy, elevating its renewable energy portfolio to over 507 MW of completed projects as of September 30, 2024. The company's commitment to operational excellence and sustainable energy solutions has enabled it to secure this prestigious project from a prominent central PSU.
Additionally, the company considered and recommended the issuance of bonus Equity Shares in a 1:2 ratio. This means that for every 2 existing equity shares held by shareholders on the record date, they would receive 1 additional bonus equity share, each valued at Rs 5. The record date for bonus shares is not yet fixed and will be announced in due course.
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KPI Green Energy Ltd, established in 2008 as part of the KP Group, is a renewable energy leader specializing in solar power generation. They operate under the "Solarism" brand, offering a comprehensive solution for both Independent Power Producers (IPPs) and Captive Power Producers (CPPs). Their services include developing, building, owning, managing, and maintaining solar power plants across Gujarat, with a current installed capacity exceeding 445 MW. They cater to IPPs by directly generating and selling solar electricity, while also providing Engineering, Procurement, and Construction (EPC) services to CPP clients who wish to set up their solar power facilities.
According to Quarterly Results, the net sales increased by 67 per cent to Rs 359.68 crore and net profit increased by 101 per cent to Rs 69.84 crore in Q2FY25 compared to Q2FY24. In its half-yearly results, the net sales increased by 75 per cent to Rs 707.69 crore and net profit increased by 100 per cent to Rs 135.95 crore in H1FY25 compared to H1FY24.
The company's shares have an ROE of 30 per cent and an ROCE of 22 per cent. In September 2024, FIIs bought a 3.90 per cent stake and DIIs bought a 1.17 per cent stake and increased their stake to 9.95 per cent and 1.50 per cent respectively, compared to 6.05 per cent and 0.33 per cent respectively in June 2024. The company has a market cap of over Rs 10,000 crore with a strong order book. The stock gave multibagger returns of 115 per cent in just 1 year and a whopping 12,000 per cent in 5 years. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.