During the trading session of Friday, the shares of a manufacturer of solar cells and modules hit a 5 percent lower circuit at Rs. 1,758.1 on BSE.
With a market capitalisation of Rs. 6,344.3 crores, the shares of Websol Energy Systems Limited opened at Rs. 1,599.95, up by nearly 1.1 percent, as against its previous closing price of Rs. 1582.25.
Stock Performance
The stock has delivered multibagger returns of around 6,035 percent over a five-year period, spanning from Rs. 24.5 in November 2019 to the current stock price level of Rs. 1,503.15.
This indicates that if an investor had invested Rs. 1 lakh in the stock five years ago, it would have gained to nearly Rs. 61.3 lakhs.
In the previous six months, the stock has delivered multibagger returns of nearly 121.3 percent, as well as around 630.6 percent returns in the last one year. So far in 2024, the shares of Websol Energy System have given about 506.4 percent of multibagger returns.
Financials:
For Q2 FY25, Websol Energy System reported consolidated revenue from operations of Rs. 143.5 crores, reflecting a significant growth of around 29 percent QoQ from Rs. 111.6 crores in Q1 FY25, as well as an increase of about 47800 percent YoY from Rs. 0.3 crores in Q2 FY24.
The company’s PAT for Q2 FY25 grew to a profit of Rs. 42 crores, representing a significant increase of around 83.6 percent QoQ from Rs. 22.8 crores in Q1 FY25, as well as a year-on-year increase from a loss of Rs. 4 crores in Q2 FY24.
Future Outlook:
Websol Energy System has an existing capacity of 600 MW for its Mono PERC cell line and 550 MW for its module line, with a capacity utilisation of 85 percent.
The company will further expand its capacity by adding a 600 MW Mono PERC cell line at its Falta facility, a proposal made in the first quarter of FY25. This expansion will require an investment of nearly Rs. 220 crores, funded through internal accruals and financing from banks and financial institutions (FIs).
This capacity increase aligns with the company’s commitment to expanding solar energy production and addressing the significant demand and supply gap in the DCR market.
The company may extend to EPC rooftop solar installations and enter into alliances with solar water pump manufacturers to supply solar modules.
Shareholding Pattern:
As per the September 2024 shareholding pattern, the Promoters hold a 27.71 percent stake in the company, while Foreign Institutional Investors (FII) hold a 0.48 percent stake, and Retail Investors hold a 71.8 percent stake in Websol Energy System Limited.
About the company:
Websol Energy Systems Limited, a prominent brand in India’s solar energy sector, is primarily engaged in only one product line, which is the business of manufacturing photovoltaic crystalline solar cells and related modules in India.
The company introduced advanced Mono PERC technology, setting a new industry standard in India. Moving forward, Websol Energy Systems plans to incorporate Topcon technology, expanding its product range and strengthening its leadership in the sector.
Written by Shivani Singh
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