1:2 Bonus Share & 9,600 Per Cent Returns: Solar Power Company inked an MoU with New and Renewable Energy Department
The stock gave multibagger returns of 820 per cent in just 3 years and a whopping 9,600 per cent in 5 years.
KPI Green Energy Limited, through its parent company KP Group, has entered into a significant Memorandum of Understanding with the New and Renewable Energy Department of the Madhya Pradesh government. This agreement, formalized at the Global Summit 2025 in Bhopal on February 24, 2025, outlines plan to establish a diverse portfolio of renewable energy projects within Madhya Pradesh, encompassing solar, wind, hybrid, battery energy storage systems (BESS), and biomass technologies, with a combined capacity of 1.8 GW. This collaboration signifies a strong commitment to advancing sustainable energy practices and directly supports both national and state-level objectives for renewable energy expansion.
Earlier, the company issued bonus equity shares in a 1:2 ratio. This means that for every 2 existing equity shares held by shareholders on the record date, they would receive 1 additional bonus equity share, each valued at Rs 5. The bonus shares were ex-traded on January 03, 2025.
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.
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According to Quarterly Results, the net sales increased by 39 per cent to Rs 458 crore and net profit increased by 67 per cent to Rs 85 crore in Q3FY25 compared to Q3FY24. In its nine-month results, the net sales increased by 59 per cent to Rs 1,166 crore and net profit increased by 86 per cent to Rs 221 crore in 9MFY25 compared to 9MFY24.
The company's shares have an ROE of 30 per cent and an ROCE of 22 per cent. The company has a market cap of Rs 7,850 crore with a strong order book. The stock gave multibagger returns of 820 per cent in just 3 years and a whopping 9,600 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.