10:1 Stock Split & Rs 7,000 Crore Order Book: Refex Green Mobility Limited and Gensol Engineering Limited Provide Update on Proposed Asset Takeover
The stock is down 82 per cent from its 52-week high of Rs 1,125.75 per share and gave multibagger returns of over 900 per cent in 5 years.
Refex Green Mobility Limited (RGML) and Gensol Engineering Limited (Gensol) wish to address recent media speculation regarding the proposed sale of 2,997 electric vehicle (EV) assets by Gensol to RGML. The companies had entered into a tie-up for the takeover of assets, subject to necessary regulatory and financial approvals, as well as the completion of due diligence. The transaction terms had been mutually agreed upon, and a comprehensive evaluation is currently underway, covering financial, legal, and operational aspects.
Gensol has been fully cooperative in supporting this review process by providing all required documentation and clarifications. Additionally, companies are awaiting financial and regulatory approvals to proceed with the transaction. Contrary to speculative reports, the transaction has not yet been concluded. Until completion, the EV assets will remain Gensol's property and will continue to operate on the BluSmart platform.
Additionally, Gensol’s Board has approved a stock split, reducing the face value of its shares from Rs 10 to Re 1. This tenfold split is expected to enhance liquidity and improve affordability for retail investors, making it easier for a larger pool of investors to participate in the company’s growth. The increased availability of shares in the market may lead to higher trading volumes, potentially improving price discovery and market participation. The record date will be announced in due course.
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About the Company
Gensol Engineering Limited, founded in 2012, has rapidly become a prominent player in the renewable energy landscape, offering comprehensive solutions encompassing solar EPC services in India and the Middle East, advanced solar tracking through Scorpius Trackers, and a significant push into electric mobility with EV leasing and manufacturing. With a workforce exceeding 500 professionals, Gensol has executed over 770 MW of solar projects, establishing itself as a top-tier EPC provider, and is further expanding its portfolio into battery energy storage and green hydrogen, while simultaneously driving the adoption of electric vehicles through its manufacturing facility and leasing services, catering to a diverse clientele.
Results: According to Quarterly Results, the net sales increased by 30 per cent to Rs 345 crore and the net profit increased by 6 per cent to Rs 18 crore in Q3FY25 compared to Q3FY24. In its nine-month results, the net sales increased by 42 per cent to Rs 1,056 crore, EBITDA increased by 89 per cent to Rs 246 crore and net profit increased by 34 per cent to Rs 67 crore in 9MFY25 compared to 9MFY24. Looking at its annual results, the net sales increased by 142 per cent to Rs 963 crore and the net profit increased by 129 per cent to Rs 53.5 crore in FY24 compared to FY23.
The company has a market cap of Rs 776 crore and has an order book of Rs 7,000 crore as of December 31, 2024. The stock is down 82 per cent from its 52-week high of Rs 1,125.75 per share and gave multibagger returns of over 900 per cent in 5 years. The stock has delivered good profit growth of 52.1 per cent CAGR over the last 5 years with a PE of 9x and an ROE of 20 per cent. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.