Shares of a green energy company hit the 5 percent upper circuit on Wednesday’s early trades after it entered into a strategic partnership with the Maharashtra Government. At 12:11 Pm, its shares were locked at ₹ 356.70 apiece on the Bombay Stock Exchange (BSE).
KP Energy informed the exchanges that it has entered into a Memorandum of Understanding (MoU) with Mahatma Phule Renewable Energy and Infrastructure Technology Limited (MAHAPREIT), a subsidiary of MPBCDC, a government undertaking of Maharashtra.
It said that this collaboration establishes a significant strategic partnership aimed at the advancement of diverse projects, particularly those in the realm of renewable energy.
The company has been appointed as a knowledge partner to MAHAPREIT, to provide valuable assistance in overcoming initial challenges by designing and formulating a comprehensive blueprint for project-specific strategic planning. Moreover, KP Energy will provide dedicated support in operational and control management aspects throughout the entire project lifecycle.
The company’s share price increased from ₹ 151.60 apiece at the beginning of the current financial year (01 April 2023) to the current level of ₹ 356.70 apiece, delivering multibagger returns of 135.29 percent. Therefore, if an investor had invested ₹ 1 lakh in the company’s
shares at the beginning of the current financial year, the value of theory holdings would have been ₹ 2.35 lakhs today!
KP Energy is engaged in the development of wind farms, wind power projects and allied services. Moreover, it serves as an original equipment manufacturer (OEM) of wind turbines, independent power producers, captive users as well as institutional investment programs.
The company has a market capitalization of ₹ 755.00 crores and is a microcap company. It has a high return on equity of 40.70 percent and an ideal debt-to-equity ratio of 0.31. KP Energy’s shares were trading at a price-to-earnings ratio (P/E) of 18.89, which is slightly higher than the industry average of ₹ 16.12, indicating that the stock might be overvalued as compared to its peers.
Retail investors hold a 55.01 percent stake in the company followed by promoters with 44.80 percent and foreign institutional investors with 0.19 percent.
Written by Simran Bafna
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
