Synopsis:
Oriana Power jumped sharply after it secured an order worth Rs 3,135 crore (Rs 313.5 crore each year for 10 years) from Solar Energy Corporation of India for the Production and Supply of 60,000 MT/annum of Green Ammonia under the SIGHT Scheme (Mode-2A-Tranche-I).
The shares of this leading solar power project supplier are in focus after it bagged a significant order valued at Rs 313 crore and is also in line to receive Rs 127 crore in incentives during the first three years under the National Green Hydrogen Mission.
With a market capitalization of Rs 4,661 crore, the shares of Oriana Power Ltd made a day high of Rs 2,370 per share, up by 4.36 percent from its previous day closing price of Rs 2,271.05 per share. Over the past six months, the stock has delivered a robust return of 61 percent.
About the order
Oriana Power Limited, through a stock exchange filing, announced that it has received a Letter of Award (LOA) from the Solar Energy Corporation of India Ltd. (SECI) as part of the SIGHT Scheme (Mode-2A-Tranche-I).
This award is for the production and supply of a whopping 60,000 metric tonnes of green ammonia each year, priced at Rs 52.25 per kg, to Madhya Bharat Agro Products Ltd-II in Madhya Pradesh. The project is set to be completed within 36 months, with an impressive annual contract value of Rs 313.5 crore for a period of 10 years.
On top of that, the company is also in line to receive Rs 127 crore in incentives during the first three years under the National Green Hydrogen Mission, marking a major step forward in its clean energy journey.
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Financial Highlights
Oriana Power reported a consolidated revenue of Rs 628 crores in H2 FY25, up 74 percent from its H1 FY25 revenue of Rs 360 crores. Additionally, it reported a net profit of Rs 110 crores in H2 FY25, up by 124 percent, from its H1 FY25 net profit of Rs 49 crores.
The stock delivered an impressive ROE and ROCE of 48.35 percent and 42.28 percent, respectively, and is trading at a low P/E of 29.39x as compared to its industry average of 41.25x.
Oriana Power Limited is a solar energy firm headquartered in India that offers low-carbon energy solutions to commercial and industrial customers. It develops on-site and off-site solar projects, which include ground-mounted and rooftop systems.
It works on two models: CAPEX, in which the clients finance the project and Oriana undertakes execution, and RESCO, in which its subsidiaries provide solutions on a build-own-operate-transfer (BOOT) model. Its products and services comprise floating solar panels, rooftop solar, and hydrogen electrolyzers.
Written by Satyajeet Mukherjee
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