Established in 2015, this company has rapidly emerged as a leader in the renewable energy sector, particularly focusing on solar power solutions.
Initially starting as a design engineering and solar EPC (Engineering, Procurement, and Construction) firm, it has since diversified its operations to include manufacturing solar inverters, energy storage systems, and electric vehicle (EV) chargers.
Price Movement:
With a market capitalization of Rs. 129.62 crores, the shares of Sungarner Energies Ltd started Friday’s trading session on a lower note at Rs. 559, losing around 4 percent compared to its previous close of Rs. 587.75 apiece.
Financials:
Looking at the company’s financial performance (standalone basis), the revenue jumped by around 40 percent from Rs. 7.50 during H1FY24 to Rs. 10.47 crores in H2FY24. In addition, the net profits surged by 220 percent from Rs. 20 lakhs to Rs. 50 laksh during the same timeframe.
Comparing the same metrics on a YoY basis, the revenue zoomed by 23 percent from Rs. 8.50 crores during H2FY23 to Rs. 10.47 crores in H2FY24. On the other hand, the net profits magnified by 45 percent from Rs. 55 lakhs to Rs. 80 lakhs during the same period.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 8.63 percent and a return on capital employed (RoCE) of 13.64 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 8.12 percent.
Solar Segment:
Sungarner specializes in Engineering, Procurement, and Construction (EPC) services for utility-scale solar power plants, solar farms, and rooftop installations. This includes the complete lifecycle of solar projects from design to execution and maintenance.
The company manufactures a diverse range of solar products, including high-quality solar inverters that utilize Maximum Power Point Tracking (MPPT) technology for optimal energy conversion, significantly enhancing efficiency.
The company produces both monocrystalline and polycrystalline photovoltaic (PV) modules to meet various energy requirements, offering flexibility and performance for different applications.
Additionally, Sungarner develops energy storage solutions, such as solar batteries and uninterruptible power supply (UPS) systems, which improve energy reliability by storing excess solar energy for use during low sunlight periods or power outages.
Sungarner Energies has built a solid presence in the solar sector, with over 12,000 off-grid installations and more than 100 large grid-tied projects completed in India and abroad. The company has expanded its operations to 25 states in India and several international markets, including Bhutan and Nepal.
Recently, Sungarner Energies has secured substantial orders in the solar sector. The first order, valued at Rs. 1.42 crores, is from Avadh Rail Infra Ltd for a 504 KW solar power plant. The second order, worth Rs. 1.09 crores, is from Pharma Deal Jaipur for a 5KVA 48V inverter.
Sungarner Energies has ambitious plans for expanding its solar energy solutions over the coming years. The company aims to increase its solar power generation capacity from 100 MW to 1,000 MW within the next four years, with a long-term goal of reaching 2 GW by 2030.
EV segment:
The company initially focused on solar project design and engineering, later expanding into manufacturing various energy products, including EV chargers and batteries.
Sungarner manufactures EV chargers that cater to various electric vehicles, ensuring high efficiency and reliability in performance. The company is recognized as one of the leading manufacturers of batteries specifically designed for e-rickshaws, which are a popular mode of electric transportation in India.
The company produces lead acid batteries with capacities ranging from 12 volts 40 ampere-hours to 12 volts 300 ampere-hours, which are essential for various applications, including electric vehicles.
Furthermore, the company also offers EV retrofit kits, which allow traditional vehicles to be converted into electric vehicles, enhancing their sustainability and efficiency.
As per reports, Sungarner has secured a World Manufacturer Identifier (WMI) code for EV manufacturing, indicating its intention to enter the EV market. Currently, they are in the prototype stage, developing their first electric vehicles, with plans for full-scale manufacturing yet to be realized.
Returns:
Sungarner Energies Ltd made its stock market debut on August 31, 2023, listing on the NSE Emerge platform. The shares opened at Rs. 250, reflecting a 201 percent premium over the IPO issue price of Rs. 83.
Since then, the stock has delivered approximately 190 percent return to its shareholders on a YTD basis. For instance, an investment of Rs. 1 lakh in this stock at the beginning of the year would now be worth Rs. 2.90 lakh.
Conclusion:
SunGarner Energies Limited has emerged as a prominent player in India’s renewable energy landscape, particularly within the solar and electric vehicle (EV) sectors. As the company continues to expand its capabilities and market presence, it plays a vital role in shaping the future of renewable energy in India.
Written By Vaibhav Patil
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