EKI Energy Services’ shares gained a sharp recovery after the company’s share price reached a 52-week low of ₹ 511.95 apiece on 17 February 2023. Its shares are currently locked in a 10% upper circuit at ₹ 832.70 apiece on the bourses. This indicates that they have gained 62.65% in the past five days.
Investors cheered as the Union Environment Ministry on Friday, published a list of activities that may be taken into account for trading of carbon credits on a global market, in accordance with Article 6.2 of the Paris Agreement. These activities include Greenhouse Gas (GHG) mitigation activities, alternate materials, and removal activities.
“These activities will facilitate adoption/transfer of emerging technologies and may be used to mobilise international finance in India,” said the Government of India.
EKI Energy Services Ltd. is a leading Carbon Credit Developer & Supplier across the globe. It is the first ever company to list a Plastic Project from India with Verra – a global accreditation standard located in Washington, USA.
The company is listed on the Bombay Stock Exchange and has given multibagger returns to its investors in the past. Its shares got listed in 2021, and since then, its share price has increased from ₹ 40.51 to ₹ 832.70, giving multibagger returns of 1955.54%. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares two years ago, the value of their holdings would have been ₹ 20.55 lakhs today.
However, it is important to note that its share price has fallen by 57.68% in the past year. Its unadjusted share price reached an all-time high of ₹ 12599.95 apiece on 24th January 2022 and its all-time low was on 07 April 2021, at ₹ 140 apiece.
The carbon credit developer’s share price declined sharply last week as its new auditor raised concerns over its financial statements. Walker Chandiok & Co allegedly cited non-compliance with accounting standards and revenue recognition norms. EKI Energy, however, refuted the allegations.
EKI Energy has a market capitalization of ₹ 2,082 crores. It has an excellent return on equity of 176.46% and an ideal debt-to-equity ratio of 0.01%. Its shares were trading at a price-to-book value of 5.08.
Written by Simran Bafna
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