Synopsis:
KP Group stock is in the spotlight after signing an MoU with the Government of Gujarat to invest Rs. 8,000 crore.
A small-cap company engaged in developing utility-scale wind power generation infrastructure is in the spotlight after its group signed an MoU with the Government of Gujarat to invest Rs. 8,000 crore.
With the market capitalization of Rs. 2,850.24 crore, the shares of K.P. Energy Ltd is trading at Rs. 425.75, up by 10.17 percent from its previous day’s close price of Rs. 386.45 per equity share, and it has reached a high of Rs. 437.85 in the same trading day up by 13.3 percent
What’s the News?
KP Group has signed an MoU with the Energy & Petrochemicals Department, the Government of Gujarat, to invest Rs. 8,000 crore in establishing a state-wide network of Hydrogen and EV fuel stations, creating around 1,000 jobs.
The initiative, announced during the Vibrant Gujarat Regional Conference, aims to strengthen Gujarat’s clean energy and e-mobility ecosystem, with the government facilitating necessary approvals for smooth implementation.
Management View
Dr. Faruk G. Patel, Founding Promoter of KP Group, stated that the MoU reinforces Gujarat’s leadership in clean energy by building a strong hydrogen and EV refuelling ecosystem to promote cleaner fuels and strengthen the state’s position in sustainable infrastructure development.
Also Read: Smallcap stock crashes after company’s net profit declines 56% YoY
About the Company & Others
K.P. Energy Limited, incorporated in 2010 and based in Surat, provides a balance of plant solutions for the wind energy sector in India. The company develops wind and wind-solar hybrid projects, offering end-to-end services including site identification, logistics, erection, power evacuation, and operations and maintenance, along with EPC and commissioning solutions.
A return on equity (ROE) of about 45.4 percent, a return on capital employed (ROCE) of about 41.7 percent and debt to equity ratio at 0.80 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 23x lower as compared to its industry P/E 28.6x.
K.P. Energy Limited reported revenue of Rs. 219 crore in Q1FY26, reflecting a 72 percent YoY increase from Rs. 127 crore in Q1FY25 but a 45 percent decline QoQ from Rs. 401 crore in Q4FY25.
Profit rose 39 percent YoY to Rs. 25 crore from Rs. 18 crore, though it dropped 46 percent QoQ from Rs. 46 crore, indicating strong annual growth momentum despite a sequential moderation following a high Q4 base.
Written by Akshay Sanghavi
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