The shares of this small-cap energy company hit a 5 percent upper circuit after securing a 620 MW (Mega Watt) hybrid project from Gujarat Urja Vikas Nigam Limited (GUVNL) an undertaking of the Government of Gujarat.
Share Price Movement
On Friday’s trading session, at around 9.40 am, the share price of KPI Green Energy Limited hit a 5 percent upper circuit reaching Rs.966 per share from its previous close of Rs.919 apiece.
Reason for the Rise
The stock of the KPI Green Energy rallied after the company secured an order for a 620 MW project from Gujarat Urja Vikas Nigam Limited (GUVNL) an undertaking of the Government of Gujarat.
The company successfully secured major contracts in competitive bidding processes for renewable energy projects of Gujarat Urja Vikas Nigam Limited (GUVNL).
In Tender-I, KPI Green Energy Ltd. won a base capacity of 120 MWAC (Mega Watt Alternating Current) for grid-connected solar photovoltaic projects and opted for an additional 130 MWAC, bringing the total to 250 MWAC.
In Tender-II, the Company achieved a base capacity of 50 MWAC for grid-connected hybrid renewable energy projects, with an added 320 MWAC under the Greenshoe option, totaling 370 MWAC.
These Power Purchase Agreements (PPAs) with GUVNL shall be executed after obtaining the approval of the Gujarat Electricity Regulatory Commission (GERC).
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Clientele Base
KPI Green Energy Ltd. boasts a distinguished clientele across all three of its business verticals. In the IPP (Independent Power Producer) segment, notable clients include Tata Motors, L&T, Zydus, and Polycab.
The CPP(Captive Power Producer) segment serves clients such as Aether, Ascolite, Colourtex, and German TMX. In the Hybrid segment, key clients include Green Lab, Nouveau, Orilon, and J Korin.
Manufacturing capacity
Along with its existing sites, KPI Green Energy Ltd. currently holds a total capacity and order book of 1.68 GW (GigaWatts). Its current order book includes projects worth 670 MW in the Captive Power Producer segment, 284 MW in the Independent Power Producer segment, and 280 MW in the Hybrid projects segment, totaling 1.23 GW.
Growth Prospects
The Government of Gujarat is actively harnessing its substantial renewable energy potential, targeting the development of about 36 GW of solar capacity and 143 GW of wind capacity. It has set an ambitious goal of reaching around 100 GW of renewable energy capacity by 2030.
KPI Green Energy, a top player in the solar market, is highly successful in third-party solar sales within Gujarat. As a result, KPI Green Energy is expected to secure numerous projects and experience significant growth.
Geographical Presence
KPI Green Energy Limited has a significant geographical presence primarily in Gujarat, India, where it operates 25 sites across various districts.
The company is also expanding beyond Gujarat with new projects, including a 500 MW solar park in Uttarakhand and a solar power agreement in Maharashtra.
Financial Performance
KPI Green Energy Ltd. reported revenue of operations of Rs.289.36 crore in the quarter ending March 2024, which is 58 percent up from Rs.182.4 crore in the corresponding quarter of the previous year 2023.
Similarly, the net profit increased by 35 percent to Rs.43.04 crore from Rs.31.78 crore in the same period.
Shareholding Pattern
53.09 percent stake in KPI Green Energy Ltd. is held by the promoters of the company, followed by Retail investors holding 39.81 percent stake. Foreign Institutional Investors (FII) own a 6.67 percent stake, and Domestic Institutional Investors (DII) own a 0.34 percent stake.
About the Company
KPI Green Energy Ltd is part of KP Group. They develop, build, own, manage, and maintain renewable power facilities (solar and wind-solar hybrid power projects) as an Independent Power Producer (IPP) and as a service provider to Captive Power Producers (CPPs) under the ‘Solarism’ brand.
Written by – Siddesh S Rakar
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