Shares of this solar stock gained 2.47 percent after the company approved divestment of their subsidiary to focus on core business.
At 2:50, 11th October shares of Swelect Energy Systems Ltd were trading at Rs. 606.30 per share, up by 2.47 percent from the previous closing price of Rs. 591.70 per share.
Such bullish stock price movement were observed after the company announced through a regulatory filing on Bombay stock exchange (BSE) that they have approved for divestment up to 100 percent stake in Amex Alloys Private Limited which is a wholly owned subsidiary of the company.
The reason for this divestment is company will be able to focus more on their core business activities which are Solar Photovoltaic Modules Manufacturing, Distribution of Solar Panels and Balance of Systems in India and Abroad, Engineering, Procurement and Construction (EPC) of Solar Projects and Solar Power Generation (IPP).
Looking at the financial statements, the company’s revenue increased by 22.87 percent to Rs. 85.05 crores in Q1FY24 from Rs. 69.22 crores in Q1FY23, in the same time period net profit increased to Rs, 10.91 crores from Rs. -2.71 crores.
Talking about the financial ratios, the company reported Return on capital employed of 4.91 percent and return on equity (ROE) of 3.82 percent in the last financial year.
Incorporated in 1994, Swelect Energy Systems Ltd is engaged in the business of manufacturing and trading of Solar power projects, off-grid solar photovoltaic modules, based on crystalline silicon technology (c-Si), solar and wind power generation, contract manufacturing services, installation and maintenance services, sale of Solar Photovoltaic inverters and energy efficient lighting systems.
Written by: Vinit Israni
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