The shares of the solar energy company hit 5 percent upper circuit to Rs.3,329.90 apiece after the company achieved 181.86 percent volume growth YOY on consolidated basis. The stock has given a return of 1613.82 percent in a year.
What happened
Insolation Energy Ltd. (INA) reported exceptional performance with a staggering 181.86 percent year-over-year sales volume growth on a consolidated basis. In Q1 of FY 2024-25, their revenues surpassed the entire first half of FY 2023-24.
Mr. Manish Gupta, Chairman, and Mr. Vikas Jain, MD, emphasised that this quarter marked the highest sales achievement since the company’s inception, attributing it to robust demand which they expect to sustain in the coming quarters.
Capex
Management has reiterated plans for a substantial capital expenditure to expand solar panel manufacturing capacity by an additional 3GW (Gigawatt), aiming for a total of approximately 4GW (Gigawatt) and 12,000 MT (Metric Ton) of Aluminum framing by 2024-25.
They foresee FY 24-25 as a potential year for revenue growth, with anticipated margin expansion in the range of 200-250 basis points.
Moreover, a technological upgrade initiative is already underway with a vendor to commission 1.4GW (Gigawatt) of cell manufacturing capacity by 2025-26. This strategic move aims to meet current robust demand and showcase cutting-edge technology adoption in Insolation Energy Ltd.’s operations.
Union Budget support
Presenting the Union Budget on Tuesday, Finance Minister Nirmala Sitharaman said that the PM Suryaghar Muft Bijli Yojana has been launched to install rooftop solar panels to enable 1 crore households to obtain free electricity up to 300 units each month.
The scheme provides subsidies covering up to 40 percent of the cost of solar panels for households. This financial support makes solar energy more accessible and affordable for consumers, further driving demand. Insolation Energy can leverage these incentives to promote its products and gain a competitive edge.
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Remarkable Returns
The share price of Insolation Energy Ltd. has delivered multibagger returns of more than 1613 percent in one year, as well as around 195 percent returns in the last six months. A shareholder’s investment of Rs.1 lakh in the company would be worth Rs.17.13 lakh in a year.
The company publishes their report every six months. Their revenue increased by 65 percent, from Rs.278.4 crore in H1FY24 to Rs.458.77 crore in H2FY24. During the same period, net profit of the company grew significantly by 169 percent, from Rs.15.03 crore to Rs.40.43 crore. If a investor has invested Rs.1,00,000
Shareholding Pattern
In the company’s recent shareholding pattern, the Promoters of the company own 69.98 percent and the remaining 30.01 percent is owned by Retail investors.
Company Profile
Insolation Energy Ltd primarily operates in the solar energy sector, focusing on the manufacturing of solar photovoltaic (PV) modules. The company’s product categories include solar module, solar power conditioning units (PCU), solar battery and solar charge controller. Insolation Energy Ltd. is headquartered in Jaipur, India.
Written by – Siddesh S Raskar
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