Multibagger Solar Stock In Focus As Company Announces Strategic Subsidiary Expansions and Capital Increase
The stock gave multibagger returns of 291 per cent from its 52-week low of Rs 140 per share.
Australian Premium Solar Ltd (APS) is a leading Indian solar company specializing in high-quality solar panels, water pumps, and EPC services. To fuel future growth, APS is making significant investments. This includes acquiring a 51 per cent stake in Aplus Solar Cell Private Limited, a new subsidiary focused on manufacturing TOPCon and monocrystalline solar cells. Additionally, APS is establishing a wholly owned subsidiary to support existing operations. To finance these ventures, APS plans to increase its authorized share capital from Rs 20 crore to Rs 22 crore and issue new equity shares to non-promoter shareholders and convertible warrants to promoter shareholders.
Aplus Solar Cell Private Limited, the new subsidiary, will contribute to APS's technological diversification and expansion into emerging renewable energy markets. While currently in its initial stages, Aplus Solar Cell will play a crucial role in enhancing APS's manufacturing capabilities and potentially generating new revenue streams. The establishment of a second, wholly owned subsidiary demonstrates APS's commitment to adapting its corporate structure to the evolving solar and energy storage landscape.
The proposed capital increase and share issuance are strategic moves aimed at strengthening APS's financial position and providing the necessary resources for its ambitious growth plans. By raising capital from both non-promoter and promoter shareholders, APS aims to secure funding for its investments in new subsidiaries and drive innovation within the renewable energy sector. These initiatives position APS for continued success in the dynamic and rapidly growing Indian solar market.
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About the Company
Established in 2013, Australian Premium Solar (India) Limited is a prominent Indian solar solutions provider specializing in the manufacturing of high-efficiency Monocrystalline and advanced Topcon solar modules. The company also offers comprehensive EPC services for a wide range of applications, including residential, commercial, industrial, and agricultural. Leveraging the founders' deep international solar expertise, APS develops and produces high-quality, locally manufactured solar products. As an ISO 9001-certified company, APS prioritizes rigorous quality standards, ensuring the reliability and excellence of its products. The company collaborates with renowned firms to supply solar panels for critical applications across diverse sectors, demonstrating its commitment to innovation and driving the adoption of sustainable renewable energy solutions.
Results: The financial performance of the company has significantly improved in H1FY25 compared to H1FY24. Total income has increased by 102.09 per cent from Rs 81.27 crore in H1FY24 to Rs 164.24 crore in H1FY25. This revenue growth was driven by a strong increase in EBITDA, which rose by 357.71 per cent from Rs 4.26 crore to Rs19.51 crore. Profit after tax (PAT) also saw a substantial growth of 401.56 per cent, increasing from Rs 2.61 crore to Rs 13.08 crore.
The company have a market cap of over Rs 1,000 crore. The shares of the company have an ROE of 42.5 per cent and an ROCE of 51 per cent. The stock gave multibagger returns of 291 per cent from its 52-week low of Rs 140 per share. Investors should keep an eye on this small-cap solar EPC stock.
Disclaimer: The article is for informational purposes only and not investment advice.