Double booster: Small-cap renewable energy company receives new order and promoters are increasing the stake; don't miss action!

Promoter shareholding increased in September 2023 to 54.83 per cent, from 54.70 per cent in September 2022

KPI Green Energy Ltd, in the 'Captive Power Producer (CPP)' segment, has recently acquired new orders totalling 6.50 MW for solar power projects. These orders have been awarded by M/s. Vasudev Synthetics (2.00 MW), M/s. Shree Chakradhar Industries (3.00 MW), and M/s. Shree Chakradhar Synthetics (1.50 MW). The aggregate order size is 6.50 MW. These projects are slated for completion during the financial year 2023-24. With these additions, KPI green’s cumulative orders of solar power projects, till date have crossed 106+ MW under CPP segment of the Company.

About KPI Green Energy Ltd

KPI Green Energy Ltd, a prominent player in the renewable energy sector, operates as both an Independent Power Producer (IPP) and a Captive Power Producer (CPP) in Gujarat, solidifying its position as a market leader in solar energy through third-party sales. With a dedicated team of experts, KPI Green continually optimizes its power plants to deliver uninterrupted and reliable renewable energy. The company boasts a total of 25 project sites. Notably, KPI Green recently secured a significant 145.20 MW Hybrid CPP order and won a 240 MW DC bid from GUVNL in the IPP segment, elevating its gross order book to 541+ MW, aligning with its ambitious target of 1000 MW by 2025.

In 2023, the company achieved several milestones, including an upgrade in its credit rating from BBB+ to A and the successful commissioning of a 26.10 MW IPP Hybrid Project, along with reaching a cumulative capacity of 300+ MW across IPP and CPP operations. Additionally, KPI Green secured a 200 MW Solar PV project from GUVNL, further solidifying its standing in the renewable energy market. The company stock has delivered 125 per cent returns in past 1 year, classifying it as a "multibagger"

Revenue model

The company operates as both an Independent Power Producer (IPP) and a Captive Power Producer (CPP). As an IPP, they develop and maintain grid-connected solar power projects, generating revenue by selling power units to businesses through Power Purchase Agreements (PPAs). Currently, they have completed approximately 141 MW (DC) of projects in various locations. In the CPP model, KPI Green offers tailored solar and hybrid power projects to customers, enabling them to reduce electricity costs. They also provide Operation and Maintenance Services (O&M) for efficient and guaranteed performance. They have completed around 202 MW (DC) of CPP projects.

In the first half of FY2024, the company reported robust financial results.

• Total income reached Rs 406.52 Crore, marking a substantial 44 per cent increase compared to the Rs 282.96 Crore in H1FY23.
• EBITDA for H1FY24 stood at Rs 142.5 Crore, demonstrating a strong 49 per cent growth from Rs 95.42 Crore in H1FY23.
• Moreover, the profit after tax in H1FY24 reached Rs 68.01 Crore, representing a notable 57 per cent surge from the Rs 43.39 Crore recorded in H1FY23.

Disclaimer - The article is for informational purposes only and not investment advice.