1:2 Bonus Share & PAT Rockets 101 Per Cent: Multibagger Solar Power Stock In Green; FIIs & DIIs Increase Stake
The stock gave multibagger returns of 110 per cent in just 1 year and a whopping 11,200 per cent in 5 years.
On Monday, shares of KPI Green Energy Ltd gained 3.88 per cent to Rs 780 per share from its previous closing of Rs 750.90 per share with an intraday high of Rs 785 per share and an intraday low of Rs 750 per share.
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 pre-bonus paid-up share capital was Rs. 65,63,02,015, divided into 13,12,60,403 equity shares. After the bonus issue, the post-bonus paid-up share capital increased to Rs. 98,44,53,025, with a total of 19,68,90,605 equity shares.
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.
KPI Green Energy Limited has made significant strides towards its renewable energy goals by successfully securing Power Purchase Agreements (PPAs) with Gujarat Urja Vikas Nigam Limited (GUVNL) for a combined capacity of 620 MWAC (917 MWDC). These projects, a 250 MWAC solar PV power project and a 370 MWAC hybrid RE power project, were both awarded through competitive bidding processes conducted by GUVNL. By undertaking these projects, KPI Green Energy is actively contributing to India's shift towards cleaner and greener energy sources, aligning with the nation's commitment to sustainable development. The company's strategic focus on renewable energy reinforces its dedication to achieving its ambitious target of 10 GW capacity by 2030.
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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 110 per cent in just 1 year and a whopping 11,200 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.