Solar power company bags orders of 23-MV from Chief Electrical Inspector (CEIG); Wolkem India Ltd & Mahadev Texo Fab

The stock gave multibagger returns of 200 per cent in just 1 year whereas BSE Sensex Index is up by 25.5 per cent.

On Wednesday, shares of KPI Green Energy Ltd gained 0.55 per cent to Rs 894.25 per share from its previous closing of Rs 889.35. The stock’s 52-week high is Rs 1,116 and its 52-week low is Rs 255.46. The company's shares have an ROE of 30 per cent and an ROCE of 22 per cent.

Sun Drops Energia Private Limited, a wholly owned subsidiary of KPI Green Energy Limited, has secured Letters of Intent (LOIs) to undertake solar power projects totalling 7 MW under its Captive Power Producer (CPP) business segment. Wolkem India Ltd and Mahadev Texo Fab have awarded these contracts. As per the terms of the LOIs, Sun Drops Energia Private Limited will develop the projects, with completion scheduled for the financial year 2024-25 in various tranches. The projects are domestic in nature and involve a total order size of 7 MW.

Additionally, the company announced that they have obtained approvals from the Chief Electrical Inspector (CEIG) for 16 MW of solar power projects under our CPP business segment. These projects were executed for its esteemed clients of KPI Green Energy Limited and through our wholly owned subsidiaries, KPIG Energia Private Limited and Sun Drops Energia Private Limited. Furthermore, approval from the Chief Electrical Inspector (CEIG) has been received in the names of the respective clients.

Earlier, the company announced that its wholly-owned subsidiary, Sun Drops Energia Private Limited, had received Letters of Intent for solar power projects totalling 13.30 MW under its Captive Power Producer (CPP) segment. Domestic entities, including Sumicot Ltd, Ekta Prints Pvt Ltd, Radhika Fabrics, and Sanjopin Industries Pvt Ltd, were awarded these contracts. Sun Drops Energia was set to develop the projects as per the specified terms, with completion anticipated in the financial year 2024-25 in various tranches. The combined order value amounted to 13.30 MW.

The company shares underwent a stock split and bonus issue. The existing equity shares of Rs 10 each were subdivided into 2 equity shares of Rs 5 each on July 18, 2024 (ex-date). Additionally, bonus equity shares were issued in a 1:2 ratio on February 15, 2024 (ex-date), with the new shares ranking equally with the existing ones.

KPI Green Energy Ltd, established in 2008 as part of the KP Group, is a renewable energy leader specializing in solar power generation. They operate under the "Solarism" brand, offering a comprehensive solution for both Independent Power Producers (IPPs) and Captive Power Producers (CPPs). Their services include developing, building, owning, managing, and maintaining solar power plants across Gujarat, with a current installed capacity exceeding 445 MW. They cater to IPPs by directly generating and selling solar electricity, while also providing Engineering, Procurement, and Construction (EPC) services to CPP clients who wish to set up their solar power facilities.

The company has a market cap of over Rs 11,000 crore with a strong order book. The stock gave multibagger returns of 200 per cent in just 1 year whereas BSE Sensex Index is up by 25.5 per cent. Furthermore, the stock generated 500 per cent returns in 2 years and a whopping 9,870 per cent in 5 years. Investors should keep an eye on this small-cap stock.

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

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