The equity markets finished 2023 on a higher note as the benchmark indices Nifty 50 and BSE Sensex hovered near all-time highs, gaining 20 percent and 18 percent, respectively, through the year. Due to elevated valuations, analysts believe that the upcoming months might see some bouts of volatility
Moving into 2024, some of the crucial factors that will decide market direction are 2024 general elections, interest rate cuts and commodity prices, among others.
Listed below is one such small-cap stock that has delivered multibagger returns of 15,237 percent to its stakeholders in 3.5 years:
KPI Green Energy Ltd
With a market capitalisation of Rs.5,900 crores, the shares of KPI Green Energy Ltd started Friday’s trading session on a higher note at Rs. 1,370. During the trading session, the shares hit a 10 percent upper circuit at Rs. 1,467.85, which is also recorded as the company’s fresh 52-week high.
In June 2021, the stock price was trading at Rs 11 exhibiting a gain of around 13,245 percent compared to the current price. For example, if someone had invested Rs. 1 lakh into the company’s stock 3.5 years ago, it would have converted to Rs 1.33 crores now.
Having a look at the latest financial statements published by the company, the operating revenues as well as net profits have shown positive movements.
The revenue increased by around 14 percent from Rs. 189 crores in Q1 FY24 to Rs. 215 crores during Q2 FY24. Furthermore, the net profit increased by 6 percent from Rs. 33 crores to Rs. 35 crores during the same timeframe.
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 32.51 percent during FY 21-22 to 53.26 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 22.91 percent to 29.71 percent during the same timeframe. On a contrasting note, the net profit margin decreased from 18.81 percent during FY21-22 to 17.03 percent during FY22-23.
Earlier this year, KPI Green Energy had bagged the single largest order of Hybrid CPP of 145.20 MW and also won a 240 MW DC bid from GUVNL under the IPP Segment. With these, the total order book of the company on hand at the gross level stands at 541 plus MW. Furthermore, the company aims to reach 1000 MW by 2025.
Headquartered in Gujrat, KPI Green Energy Ltd was incorporated in 2008. The company provides solar power, both as an independent power producer (IPP) and Engineering, Procurement, and Construction (EPC) services to Captive Power producers(CPP) customers.
Written By Vaibhav Patil
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