Game Changer Move: Refex Green Mobility Set To Take Over Gensol's 2,997 EV in Landmark Strategic Tie-Up

The stock gave multibagger returns of 1,465 per cent in 3 years and has delivered good profit growth of 52.1 per cent CAGR over the last 5 years with a PE of 36x and an ROE of 20 per cent.

Today, shares of Gensol Engineering Ltd jumped 7.2 per cent to an intraday high of Rs 782.20 per share from its previous closing of Rs 729.70 per share. The stock’s 52-week high is Rs 1,377.10 per share and its 52-week low is Rs 710 per share. The shares of the company saw a spurt in volume by more than 1.01 times on BSE.

Refex Green Mobility Limited (Refex eVeelz) and Gensol Engineering Limited ("Gensol") have entered into a strategic tie-up for the transfer of 2,997 electric four-wheelers (e4Ws). This significant move will see Refex eVeelz assume Gensol's existing loan facility amounting to nearly INR 315 Crore, streamlining operations, and enhancing the deployment of e4Ws across key markets, including Chennai, Bengaluru, Hyderabad, Mumbai, and Pune where Refex eVeelz currently operates.

Following this acquisition, Refex eVeelz plans to lease these 2,997 vehicles to Blu-Smart Mobility Limited, a leading electric mobility platform. This strategic move will ensure seamless continuity and growth in the electric mobility sector, particularly in Delhi NCR and Bengaluru, where Blu-Smart operates. The successful completion of this transaction is subject to obtaining necessary approvals from all regulatory and financial stakeholders to ensure compliance with all applicable laws and standards.

The execution of this strategic tie-up will involve the transfer of term loan responsibilities availed by Gensol from a leading financial institution for the procurement of the said 2,997 e4Ws, re-registration of vehicles, and the establishment of a long-term lease arrangement with Blu-Smart Mobility. Both Gensol and Refex eVeelz are committed to ensuring a seamless transition and fulfilling all regulatory and operational requirements as per the terms of the agreement.

Mr Anil Jain, Managing Director of Refex Industries Limited (holding entity of Refex Green Mobility Limited), said: “At Refex eVeelz, we are pleased to partner with Gensol to drive the adoption of electric mobility at scale. This collaboration is a testament to our unwavering dedication to building a greener tomorrow. By integrating this opportunity with our strategic initiatives, we aim to deliver greater value to stakeholders while advancing the nation's transition to cleaner transportation solutions in addition to several such initiatives that we are undertaking where we are already playing more than 1,000 electric cars.”

Mr Anmol Singh Jaggi, Managing Director of Gensol Engineering Limited, added: “This strategic collaboration underscores our commitment to scaling green mobility solutions while achieving the deleveraging of Gensol’s balance sheet. Seeing the vehicles being transferred to a proven and leading player like Refex eVeelz, gives us immense satisfaction, knowing they will continue to contribute to our collective mission of sustainable transportation.”

About Gensol Engineering Ltd

Established in 2012, Gensol Engineering Limited, part of the Gensol group, provides comprehensive engineering, procurement and construction (EPC) services for solar power plants globally, with a proven track record of installing over 770 MW of solar capacity across ground-mounted and rooftop installations. Committed to sustainability, Gensol is revolutionising the Indian EV industry by setting up a state-of-the-art manufacturing facility in Pune for electric three-wheelers and four-wheelers, capable of producing 30,000 vehicles annually. Additionally, they offer extensive EV leasing solutions for passenger, fleet and cargo needs, having already leased over 3,000 EVs with plans to expand significantly. Headquartered in India, Gensol specialises in Solar EPC services, having built solar power plants exceeding 590 MWp globally and is dedicated to advancing clean energy and electric mobility solutions.

Results: According to Quarterly Results, the net sales increased by 14 per cent to Rs 347 crore and net profit increased by 29 per cent to Rs 23 crore in Q2FY25 compared to Q2FY24. In its half-yearly results, the net sales increased by 49 per cent to Rs 710 crore and net profit increased by 52 per cent to Rs 50 crore in H1FY25 compared to H1FY24. Looking at its annual results, the net sales increased by 142 per cent to Rs 963 crore and net profit increased by 129 per cent to Rs 53.5 crore in FY24 compared to FY23.

Order Book: Gensol Engineering Limited has announced a robust solar EPC order book worth Rs 5,424 Crore, comprising projects from both the public and private sectors. These projects are slated for completion within 12-18 months. Additionally, Gensol has secured orders for Battery Energy Storage Systems (BESS) under the BOO model, further solidifying its position in the renewable energy sector. With a total revenue visibility of Rs 10,382 crore across solar, BESS, and solar power generation segments, Gensol is well-positioned to capitalise on the growing demand for clean energy solutions.

Other Updates: In September 2024, FIIs bought 1,21,608 shares and increased their stake to 2.30 per cent compared to 1.98 per cent in June 2024. The company has a market cap of Rs 2,900 crore. The stock gave multibagger returns of 1,465 per cent in 3 years and has delivered good profit growth of 52.1 per cent CAGR over the last 5 years with a PE of 36x 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.