The Domestic benchmark equity indices, the Sensex and the Nifty 50 ended Friday’s session in negative territory. The NSE Nifty 50 was down by 172.35 points or 0.76 percent to finish the day’s trading at 22,475.85, while the BSE Sensex closed 733 points or 0.98 percent lower at 73,878.15.
Listed below is a small-cap green energy stock that has delivered multibagger returns of 1,133 percent to its stakeholders in 1 year:
With a market capitalization of Rs. 3,622 crores, the shares of Insolation Energy Ltd started Thursday’s trading session on a higher note at Rs. 1,735 compared to its previous close of Rs. 1,655.85. Within a few minutes of the opening bell, the shares clocked 5 percent upper circuit at Rs. 1,7380.60 apiece.
In May 2023, the stock price was trading at Rs 140.90 exhibiting a gain of around 1,133 percent compared to the current price. For example, if someone had invested Rs. 1 lakh into the company’s stock a year ago, it would have converted to approximately Rs. 12.33 lakhs now.
Coming onto the company’s financial statements, the revenue zoomed by around 70 percent from Rs. 164 crores during H2FY24 to Rs. 278 crores during H1FY24. In addition, the net profits magnified by 150 percent from Rs. 6 crores to Rs. 15 crores during the same period.
Comparing these on a YoY basis, the revenue increased by 30 percent from Rs. 215 crores during FY21-22 to Rs. 279 crores in FY22-23. On the other hand, the net profits surged by 57 percent from Rs. 7 crores to Rs. 11 crores during the same timeframe.
Earlier, Insolation Green Energy Private Limited, a wholly-owned subsidiary of Insolation Energy, secured purchase orders for supplying Solar PV Modules Mono Perc M-10. The orders, totalling Rs. 93.52 crores, were received from APM Projects Pvt. Ltd. and Rotomag Motors & Controls Pvt. Ltd.
Furthermore, the company is strategically advancing its expansion initiatives, aiming to enhance its solar panel manufacturing capacity to 3000 MW and bolster its aluminium frame manufacturing to 6000 metric tons per annum.
Moreover, the company specializes in producing high-efficiency solar panels and modules. Its SPV Module manufacturing unit, spanning 60,000 square feet in Jaipur, boasts state-of-the-art machinery and has a capacity of 200 MW.
In 2023, the company expanded its manufacturing capacity threefold, from 200MW to 700MW. It has gained recognition as one of the top 10 solar panel brands in India. Additionally, the company has inaugurated its fully automated manufacturing unit, a pioneering initiative in Rajasthan.
The company has successfully established a geographically diversified presence in India through an extensive distributor network of more than 30 distributors and has executed more than 500 projects and has more than 10,000 customers.
Its major domestic customers include Livguard Energy Technologies Pvt. Ltd., Livfast Batteries Pvt. Ltd., Shakti Pumps India Ltd., Microtek International P. Ltd., Sunroof Tech Pvt. Ltd., and many more.
In terms of key financial metrics, the company reported a return on equity (RoE) of 12.72 percent and a return on capital employed (RoCE) of 15.88 percent for the period spanning FY22-24. Additionally, the net profit margin stood at 2.37 percent during the same timeframe.
Incorporated in 2015, Insolation Energy Ltd primarily engaged in the business of manufacturing solar panels and modules of various sizes based on demand. They also trade in solar power conditioning units and tall tabular lead acid batteries combined with solar photo-voltaic modules to create solar power generation systems.
Written by Vaibhav V Patel
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