1,700 per cent returns & FIIs increase stake: Board likely to announce bonus shares; stock trades at high ROE & high ROCE!

The stock gave multibagger returns of 260 per cent in just 1 year, 465 per cent in 2 years and a whopping 1,700 per cent in 3 years.

Today, shares of KP Energy Ltd hit a 5 per cent upper circuit to Rs 653.80 per share from its previous closing of Rs 622.50. The stock’s 52-week high is Rs 685 and its 52-week low of Rs 143.05.

KP Energy Ltd informed that the Board of Directors of the Company is scheduled to be held on Saturday, December 30, 2023, at the Registered Office of the Company, inter alia, to consider and, if deemed suitable, approve both the issuance of bonus equity shares to existing shareholders and a corresponding increase in the company's authorized share capital to accommodate this potential issuance. This combined resolution streamlines the process of rewarding shareholders while ensuring sufficient capital availability for future growth.

Earlier, in a major green energy step, KP Group commissioned Suzlon Energy to supply 193.2 MW of wind turbines across three subsidiaries: 50 turbines (105 MW) for KPI Green Energy, 41 turbines (86.1 MW) for KPIG Energia, and 1 turbine (2.1 MW) for KP Energy itself. These S120-140-HLT model turbines will be installed at the Vagra-Vilayat site in Bharuch, advancing the company's commitment to a sustainable energy future.

Furthermore, KP Energy, initially awarded a 464.10-MW balance of system contract for a Gujarat wind project by NTPC Renewable Energy, has successfully transferred the contract to their joint venture with Indian Oil Corporation, IndianOil NTPC Green Energy, through a novation agreement. This agreement retains the original scope and terms, ensuring seamless continuation of the project, which will provide renewable energy round the clock to Indian Oil.

K.P. Energy Limited is a balance of plant (BoP) solution provider for the wind energy industry. The company engages throughout the development process of wind farms, right from conceptualization until the commissioning of the project.

Talking about finances, this power company has a market cap of Rs 1,452 crore with a 3-year stock price CAGR of 162 per cent. The shares of the company have an ROE of 41.4 per cent and an ROCE of 51.2 per cent. The company reported positive numbers in its Quarterly Results (Q2FY24) and annual results (FY23). In the September quarter (Q2FY24), FIIs increased their stake from 0.19 per cent to 0.26 per cent.

The stock gave multibagger returns of 260 per cent in just 1 year, 465 per cent in 2 years and a whopping 1,700 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.