The Domestic benchmark equity indices ended Friday’s trading session on a higher note. The Nifty 50 closed the day’s trading 85 points or 0.39 percent higher at 22,096,75. At the same time, Sensex ended 190 points higher to finish the session at 72,831.94. The gainers included Maruti Suzuki, Hero MotoCorp, UPL, Bajaj Auto, and Sun Pharma
Listed below is a small-cap stock that has delivered multibagger returns of around 74,000 percent to its stakeholders in 9 years:
With a market capitalization of Rs. 15,466 crores, the shares of Waaree Renewables Technologies Ltd started Friday’s trading session on a lower note at Rs. 1,400 compared to its previous close of Rs. 1,454.80. During the trading session, the shares hit a high of Rs. 1,520, gaining around 9 percent and closed the day at Rs. 1,463 apiece.
In April 2020, the stock price was trading at Rs. 1.97 exhibiting a gain of around 74,417 percent compared to the current price. For example, if someone had invested Rs. 1 lakh into the company’s stock 4 years ago, it would have converted to approx Rs 7.45 crores now.
Looking at the company’s financial statements, the revenue zoomed by 116 percent from Rs. 150 crores during the September quarter to Rs. 324 crores in the December quarter. In addition, the net profits magnified by 256 percent from Rs. 18 crores to Rs. 64 crores during the same period.
Comparing these metrics on a YoY basis, the revenue increased by 338 percent from Rs. 74 crores during Q3FY23 to Rs. 324 crores in Q3FY24. On the other hand, the net profits improved by 156 percent from Rs. 25 crores to Rs. 64 crores during the same timeframe.
During the quarter, the company received a 70 MW capacity ground-mounted solar power project. Furthermore, as of December 31, its unexecuted order book stood at 749 MW and has planned to execute its order books for 900 to 950 MW by FY24 out of which it has already executed more than 473 MWp.
Earlier, on 1st March 2024, Waaree Renewables received a Letter of Intent (LOI) for the execution of Engineering, Procurement and Construction (EPC) work with the Land development of ISTS-connected Ground Mounted Solar PV project of 300 MW AC capacity from North Eastern Electric Power Corporation Limited worth Rs.1,401 crores.
Recently, Waaree Renewables Technologies also announced a stock split in the ratio 1:5, which means that 1 equity share with a face value of Rs. 10 each would be subdivided into 5 equity shares having a face value of Rs. 2 each.
Moreover, the Indian Government’s initiative Pradhanmantri Surydaya Yojana can be favourable for Waaree Renewable Technologies because they have excelled across the solar value chain, from manufacturing cells/modules to executing rooftop and utility-scale solar projects.
Additionally, the company has a strong track record of powering homes and executing projects in India and abroad, positioning it well to benefit from the expanding solar market and the company benefits from the backing of its flagship entity, Waaree Energies Limited, which boasts of substantial net worth and a significant order book for various project capacities.
Headquartered in Mumbai, Waaree Renewables Technologies was incorporated in 1999. The company is engaged in the business of the generation of power through renewable energy sources and also provides consultancy services in this regard.
Written By Vaibhav Patil
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