Shares of a company engaged in manufacturing and trading of solar-related products, generation of solar power and wind power surged nearly 8 percent on BSE to Rs. 25.8 on Friday, after securing an order worth Rs. 190 crores from Maharashtra State Electricity Distribution Company Limited.
With a market cap of Rs. 325.8 crores, at 12:37 p.m., the shares of Surana Telecom and Power Limited were trading in the green at Rs. 24, up by nearly 0.5 percent, as against its previous closing price of Rs. 23.9.
What’s the News
According to the latest regulatory filings with the stock exchanges, Surana Telecom and Power Limited has secured a Letter of Award (LoA) as a Solar Power Developer (SPD) for solar photovoltaic (PV) power generating stations with a total capacity of 54 MW (AC).
The estimated project cost is Rs. 190 crores, and will be implemented under the Mukhyamantri Saur Krushi Vahini Yojna 2.0, a scheme launched under Component C of the PM-KUSUM initiative for feeder-level solarization.
The project is awarded by Maharashtra State Electricity Distribution Co. Ltd (MSEDCL), a Government of Maharashtra Undertaking, and will be located in Maharashtra.
Key terms of the order include a tariff of Rs. 3.09 per kWh and a subsidy of Rs. 1.05 crores per MW. The project is to be completed within 18 months of receiving the LoA and includes a 25-year operation and maintenance (O&M) period.
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Financials
Surana Telecom reported a decline in revenue from operations, experiencing a year-on-year decrease of nearly 48.3 percent, falling from Rs. 5.8 crores in Q2 FY24 to Rs. 3 crores in Q2 FY25.
In contrast, the company’s net profit increased from Rs. 0.73 crores to Rs. 2 crores over the same period, representing an impressive growth of around 174 percent YoY.
Stock Performance
The stock has delivered positive returns of nearly 52.4 percent of returns in one year, while around 11 percent of negative returns in the last six months. Meanwhile, the shares of Surana Telecom have gained by around 1.5 percent in the last one month.
About the Company
Surana Telecom and Power Limited is engaged in the business of manufacturing and trading of solar-related products, generation of solar power and wind power.
As of FY24, the company, along with its subsidiaries, owns a total installed capacity of 25 MW across the states of Gujarat, Uttar Pradesh, and Telangana.
Written by Shivani Singh
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