Shares of this small-cap company locked 5 percent upper circuit after receiving an order worth Rs. 93.52 crores. The shares have provided an impressive return of 1,071 percent to its shareholders over one year.
With a market capitalization of Rs. 3,449 crores, the shares of Insolation Energy Ltd started Thursday’s trading session on a higher note at Rs. 1,616 compared to its previous close of Rs. 1,577. Within a few minutes of the opening bell, the shares clocked 5 percent upper circuit at Rs. 1,655.85 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that the Insolation Green Energy Private Limited, a wholly owned subsidiary, 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.
Coming onto the company’s financial statements, the revenue zoomed by around 70 percent from Rs. 164 crores during H2FY23 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.
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.
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 in Vaibhav Patil
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