Solar penny stock under Rs 60 hit upper circuit after bagging an order worth Rs 190 crore from Maharashtra State Electricity Distribution Co. Ltd

Kiran Shroff
Solar penny stock under Rs 60 hit upper circuit after bagging an order worth Rs 190 crore from Maharashtra State Electricity Distribution Co. Ltd

From Rs 28 (52-week low) to Rs 52.38 per share, the stock is up by 87 per cent and gave multibagger returns of over 800 per cent in 5 years.

On Monday, shares of Surana Solar Ltd hit a 5 per cent upper circuit to Rs 52.38 per share from its previous closing of Rs 49.89 per share. The stock’s 52-week high is Rs 67 per share and its 52-week low is Rs 28 per share.  

Surana Solar Limited announced a significant development. In continuation to its previous intimations, the company has successfully secured a Power Purchase Agreement (PPA) for 25 years with Maharashtra State Electricity Distribution Co. Ltd. This agreement pertains to the implementation of a 54 MW (AC) solar photovoltaic power generating station, awarded under the Mukhyamanatri Saur Krushi Vahini Yojna 2.0. The project, estimated to cost Rs 190 crore, will be executed by Surana Technologies Private Limited, a wholly-owned subsidiary of Surana Solar Limited. This strategic move reinforces the company's commitment to sustainable energy solutions and its ability to capitalize on growth opportunities in the renewable energy sector.

Earlier, the company completed the acquisition of a 100 per cent stake in Surana Technologies Private Limited, making it a wholly owned subsidiary. Surana Technologies Private Limited is a new company incorporated in November 2023 to carry on business related to solar energy products, including trading, distribution, manufacturing, and project execution. The acquisition involved a cash consideration of Rs 1,00,000 (corresponding to Rs 10 per share) and strengthened Surana Solar Limited's presence in the solar energy sector, though the target company's financial performance for the previous years is not available.

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Surana Solar Ltd (SSL), incorporated in 2006, is a prominent player in the solar energy industry, engaged in manufacturing solar photovoltaic modules, generating wind and solar power, and trading solar-related products. As a part of the Surana Group, SSL specializes in EPC of power projects on a turnkey basis, offering grid-connected and grid-off photovoltaic power plants. With its expertise in engineering, procurement, and construction, SSL undertakes projects ranging from 1 MW to 15 MW.

Quarterly Results: The net sales increased by 370.55 per cent to Rs 1,454.01 lakh in Q2FY25 compared to Q2FY24. The company reported a turnaround net profit of Rs 32.69 lakh in Q2FY25 compared to a net loss of Rs 145.27 lakh in Q2FY24: increasing 123 per cent.

Half-Yearly Results: The net sales increased by 649 per cent to Rs 2,622.13 lakh in H1FY25 compared to H1FY24. The company reported a turnaround net profit of Rs 60.47 lakh in H1FY25 compared to a net loss of Rs 121.10 lakh in H1FY24: increasing 150 per cent.

From Rs 28 (52-week low) to Rs 52.38 per share, the stock is up by 87 per cent and gave multibagger returns of over 800 per cent in 5 years. Investors should keep an eye on these Penny Stocks.

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

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