Shares of this smallcap company jumped around 2 percent after securing an order worth Rs. 6.25 crores for Solar Ground Mount Power Plant. On a YTD basis, the shares have delivered a multibagger return of 235 percent to its shareholders.
Price Movement:
With a market capitalization of Rs. 1,173 crores, the shares of Solex Energy Ltd started Wednesday’s trading session on a higher note at Rs. 1,455.90 compared to its previous close of Rs. 1,440.55. During the trading session, the shares hit a high of Rs. 1,467,95, gaining around 2 percent and are currently trading at Rs. 1,459 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had received a work order from Vishwaprem Dyg. Mills Pvt. Ltd., Surat for the installation of a 2 MW Solar Ground Mount Power Plant worth over Rs. 6.25 crores, and to be completed within 6 months as per the terms of the order.
This marks the fourth consecutive order secured by the company within less than three months. Previously, Solex Energy received a work order from Colour Fashions Pvt Ltd, Surat, valued at Rs. 3.40 crores, for the installation of a 1 MW Solar Ground Mount Power Plant, to be completed within 6 months.
Additionally, Solex Energy received another work order from Inorbit Malls (India) Pvt. Ltd, Malad, worth over Rs. 93.10 lakhs, for the installation of a 303 KW Solar Power Plant Rooftop, with completion expected within 3 months as per the terms of the order.
Financials:
Looking at the company’s financial statements, the revenue magnified by 194 percent from Rs. 93 crores during H1FY24 to Rs. 273 crores in H2FY24. In addition, the net profits surged by 800 percent from Rs. 1 crore to Rs. 8 crores during the same period.
Manufacturing Facilities:
The company has a 700 MW PV module production capacity factory and a 1.2 GW solar PV module manufacturing facility with an in-house Reliability Test Lab in Gujarat.
Furthermore, in May 2024, Solex Energy announced plans to expand its module production capacity by an additional 800 MW by signing an MoU with GMEE Solar and Wuxi Tidewinner Industrial International Co., Ltd. This will bring their total production capacity to 1.5 GW by the end of September 2024.
Moreover, the company aims to further expand its production capacity to 4.5 GW by FY 2025-26 to meet the growing global demand for high-quality Made in India solar modules.
Important Financial Ratio:
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 7.20 percent during FY 22-23 to 18.88 per cent in FY 23-24, and, the return on capital employed (RoCE) zoomed from 10.96 percent to 22.74 percent during the same timeframe.
Shareholding Pattern:
According to the latest shareholding pattern, Promoters control 70.66 percent of the stake, while DIIs hold 1.10 percent. The remaining 28.24 percent is owned by Retail Investors.
Company Profile:
Headquartered in Surat, Solex Energy Ltd was incorporated in 2014. The company is engaged in the manufacturing of solar panels and other renewable energy devices and the installation of systems on an EPC basis.
Written By Vaibhav Patil
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.
