A leading solar stock surged 4 percent after securing a significant order for Solar PV modules worth nearly Rs.18 crore from Thenpandian Energy Innovations Private Limited. The order highlights the strong demand for solar solutions.
Share Price Movement
During Monday’s trading session, Solex Energy Ltd’s share price surged 4 percent to an intraday high of Rs.1,509.00 per share, up from its previous close of Rs.1,456.05 apiece. The price has since retreated and is currently trading at Rs.1,495.00 per share.
Rationale for the Rise
Solex Energy Ltd has been awarded a significant domestic contract by Thenpandian Energy Innovations Private Limited for the supply of 13 MW of Solar PV Modules Mono – Bifacial M10. This order, valued at nearly Rs.18 crore, involves the supply of advanced solar modules designed to enhance energy efficiency.
The project is set to be completed within six months, as per the terms outlined in the agreement, further strengthening Solex Energy’s position in the growing solar energy market.
Manufacturing Capacity
The current production capacity of Solex Energy stands at 700 MW, with an additional 800 MW capacity under development, funded by Rs.729.3 million raised through a preferential allotment.
This expansion is expected to be operational by December 2024. By 2030, the company plans to expand its module manufacturing capacity to 15 GW, following an initial increase of 1.5 GW.
Additionally, it is exploring the development of a new cell manufacturing facility, starting with a 2 GW capacity, designed for future scaling up to 5 GW.
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Domestic and International Presence
SOLEX Energy Limited, headquartered in Surat, Gujarat, India, has a strong domestic presence with a manufacturing facility producing 1.5 GW of solar PV modules. The company is expanding internationally, particularly targeting European markets, the UK, and the UAE, supported by its recent MCS certification.
Financial performance
For the quarter ended September 2024, Solex Energy Ltd reported revenue of Rs.273 crore, rising remarkably by 1,200 percent from Rs.21 crore in Q2 FY24. Net Profit rose exceptionally to Rs.13 crore, nil profit in Q2 FY24.
The company’s return ratios show strong performance, with a Return on Capital Employed (ROCE) of 17.9 percent and a Return on Equity (ROE) of 20.8 percent. The current ratio stands at 1.86, indicating good liquidity, while the debt-to-equity ratio is relatively low at 0.56, suggesting a manageable level of debt.
About the company
Solex Energy Limited, located in Surat, Gujarat, specializes in manufacturing a range of solar energy products, such as high-efficiency solar photovoltaic (PV) modules, solar water heaters, and solar lanterns. The company also produces solar water pumps and street lighting systems, with a strong focus on providing sustainable and reliable energy solutions.
Written by – Siddesh S Raskar
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