The shares of this smallcap company locked a 5 percent upper circuit after making significant strides in the renewable energy sector through a partnership aimed at developing solar power generation capabilities.
Price Movement:
With a market capitalization of Rs. 5,060 crores, the shares of Marsons Ltd started Monday’s trading session on a higher note at Rs. 289 compared to its previous close of Rs. 280.90.
During the trading session, the shares clocked a 5 percent upper circuit at Rs. 294.90 apiece and also recorded as the company’s fresh 52-week high.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that is now diversifying into the renewable energy sector to further solidify its position in the Indian Power sector.
The company’s main focus in the renewable energy sector will be on supplying specialized transformers for solar and wind power plants. As a result, it is expanding its product portfolio to include Inverter Duty Transformers and Generator Step-Up Transformers.
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Additionally, the company plans to invest approximately Rs. 2.5 crores in machinery and prototype development over the next three months, which is expected to create significant opportunities, potentially contributing 30-40 percent to overall revenue by FY27.
Earlier, Marsons Ltd received a Letter of Intent (LoI) from Nacof Oorja for the development of a 150 MW (AC) Grid-Interactive Ground-Mounted Solar PV Power Generation Plant. Before proceeding with the full-scale project, the company must first execute a smaller 2 MW capacity solar project as outlined in the LoI.
This project is valued at Rs. 675 crore and will be executed under the KUSUM Scheme, which aims to provide daytime power to agricultural consumers in Rajasthan.
The project will be executed in collaboration with Aditya Clean Systems (P) Ltd, which will provide technical support throughout the development phase.
Marsons Ltd views this venture into solar power generation as a significant milestone that could open new avenues for growth in the renewable energy sector. The management expressed optimism about this initiative marking the beginning of substantial developments in this promising field.
Returns:
In January 2024, the stock price was Rs. 8.03, reflecting a remarkable gain of over 3,572 percent compared to its current value. For instance, if an investor had put in Rs. 10,000 at the beginning of the year, it would now be worth around Rs. 3.67 lakhs.
Customer Base:
Marsons Ltd has a diverse customer base that includes prominent domestic and international clients. Domestically, it serves major organizations such as the Power Grid Corporation of India (PGCIL), National Thermal Power Corporation (NTPC), and various State Electricity Boards across multiple states.
Internationally, Marsons exports to over 16 countries, with notable clients including Castle Cement in the UK and Yesu PLC in Ethiopia.
Company Profile:
Incorporated in 1976, Marsons Ltd is a manufacturer and supplier of power and distribution transformers, specializing in a range of products including furnace transformers and dry type transformers, with capacities from 10 KVA to 160 MVA at 220 kV class.
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Written By Vaibhav Patil
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