2:1 Bonus Share: Back-to-back upper circuits in this multibagger power generation stock; rockets 2,700 per cent in 3 years!

The shares of the company have an ROE of 41.4 per cent and an ROCE of 51.2 per cent.

On Saturday, shares of KP Energy Ltd hit a 5 per cent upper circuit to Rs 950.45 per share from its previous closing of Rs 905.20. The stock’s 52-week high is Rs 954.90 and its 52-week low of Rs 143.05. In the recent trading sessions, the stock has been hitting back-to-back upper circuits.

KP Energy Ltd informed that the Board of Directors of the Company has approved bonus shares in the ratio 2:1, i.e., shareholders are entitled to the issuance of bonus equity shares of the company in the proportion of 2 equity shares of Rs 5 each for every 1 existing equity share of Rs 5 each as of record date. The company fixed the record date as Monday, February 12, 2024.

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 over Rs 2,000 crore with a 3-year stock price CAGR of 206 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). 

The stock gave multibagger returns of 400 per cent in just 1 year and a whopping 2,700 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.