The share price of one of the leading renewable energy firms gained 5 percent to an intraday high price of ₹1,845 apiece on Monday after the company signed a 240 MWp Power Purchase Agreement with Gujarat Urja Vikas Nigam Limited.
At 2:10 p.m., on Monday’s trade, KPI Green Energy Ltd. shares were trading at ₹1,728.65 per share, up 1.66 percent from the previous close price on the stock exchange. The company has a market capitalization of ₹10,865 crore.
According to the company’s exchange filing, KPI Green Energy Limited has entered into a Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) for a 200 MWAC (240 MWp) grid-connected solar photovoltaic power project.
The company secured this project from Gujarat Urja Vikas Nigam Limited (GUVNL) on May 20, 2023. This agreement involves the procurement of power from 800 MW grid-connected solar photovoltaic power projects situated in Gujarat State Electricity Corporation Ltd.’s (GSECL) Solar Park at Khavda (GSECL Stage 2). Additionally, the Greenshoe option, allowing for an additional capacity of up to 800 MW, has been successfully signed and executed with Gujarat Urja Vikas Nigam Limited (GUVNL).
The company’s return on equity increased from 28.12 percent in FY22 to 42.50 percent in FY23, while the return on capital employed rose from 16.21 percent to 21.37 percent during the same period.
KPI Green Energy Ltd. shares have delivered a multibagger return of 512 percent in a year. A shareholder investment of ₹ 1 lakh in the company a year ago, would be worth Rs 6.12 lakh.
The company’s revenue has increased by 35 percent annually, rising from ₹160 crore in Q2FY23 to ₹215 crore in Q2FY24. Further, net profit has increased by 62 percent within the same period, from ₹21 crore to ₹ 35 crore.
KPI Green Energy Ltd builds and manages solar power projects as an independent power producer and captive power producer under the Solarism brand.
In the December quarter, the company raised ₹ 300 crore through a qualified institutional placement (QIP) by issuing shares to qualified institutional buyers (QIBs).
Written by Omkar Chitnis
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
