This Company had risen over 6,457 percent from Rs. 21 in November of 2019 to make an all-time high of Rs. 1,377 in February of 2024. Giving a significant return to their investors. If an investor had put Rs. 1 lakh into the stock, that Rs. 1 Lakh would have turned to Rs. 65,57,000 in just 6 years.
However, after the recent revelations, the stock has been in a constant decline for the last 4 months. Falling 94.66 percent from its all-time High of Rs. 1,377 to Rs. 73.42. If an investor had put in Rs. 1 lakh into the stock at its peak, that Rs. 1 Lakh would have turned to just Rs. 5,340
With a market cap of Rs. 282 Crores, the stock of Gensol Engineering is trading at Rs. 73.42 and in the past 1 year has given -91.79 percent return, and the past 5-year return for the stock stands at 250 percent even after the massive decline.
About the Company
Gensol Engineering Limited is an Indian renewable energy company specializing in solar engineering, procurement, and construction (EPC) services. Established in 2012 and headquartered in Ahmedabad, Gujarat, Gensol has executed multiple solar projects across ground-mounted and rooftop installations.
The company has diversified into electric mobility, offering EV leasing solutions and manufacturing electric vehicles through its facility in Pune. Gensol’s recent ventures include green hydrogen EPC and battery energy storage systems, aligning with India’s clean energy goals.
Recent Revelations
SEBI has found several critical issues in its findings following the complaint it received in June of 2024. SEBI found no manufacturing activity at Gensol’s electric vehicle (EV) plant in Pune during an NSE site visit. The company had made misleading statements about pre-orders for its EVs, which turned out to be non-binding MoUs
SEBI believes in a possible misuse and diversion of funds by the promoters, Anmol Singh Jaggi and Puneet Singh Jaggi. Funds obtained from IREDA & PFC for the purchase of EV were allegedly used for personal expenses. Promoters allegedly used the company funds for personal credit card payments, luxury acquisitions, and personal travel.
Also read: 2 Defence stocks that have broken out above their 52-week highs amid market volatility
Financial Highlights
The company reported a 56.81 percent YoY increase in revenue from Rs. 220 Crore in Q3FY24 to Rs. 345 Crore in Q3FY25. On a QoQ basis, the company reported a marginal decrease of 0.28 percent in revenue from Rs. 346 Crore in the previous quarter.
Their Net profit saw an increase of 50 percent YoY from Rs. 12 Crore to Rs. 18 Crore for the same period. On a QoQ basis, the company reported a decrease of 21.73 percent in Net profit from Rs. 23 Crore in the previous quarter
Shareholding Pattern
Despite the recent revelations, Retailers have increased their Shareholding in the Company from 35.34 percent holding in the December quarter to 57.75 percent holding in the March quarter. However, promoters have reduced their shareholding from 62.66 percent in the December quarter to 35.88 percent in the March quarter. FIIs holding has increased from 0.63 percent to 4.88 percent, and DIIs holdings have increased from 0.00 percent to 0.14 percent for the same period.
Written By Abhishek Das
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