Shares of this smallcap company locked 5 percent upper circuit after receiving orders worth more than 50 crores for Solar Ground Mount Power Plant. On a YTD basis, the shares have delivered a multibagger return of 255 percent to its shareholders.
Price Movemnet:
With a market capitalization of Rs. 1,230 crores, the shares of Solex Energy Ltd started Monday’s trading session on a lower note at Rs. 1,460 compared to its previous close of Rs. 1,464.60. During the trading session, the shares clocked a 5 percent upper circuit at Rs. 1,537.80 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had received the work order from Vatsalya Paper Industries LLP, Surat for 10 MWP Solar Ground Mount Power Plant worth over Rs. 34.25 crores and to be completed within 6 months as per the terms of the order.
Furthermore, the company received another work order from Sonali Dyeing & Printing Pvt. Ltd., Surat for a 2.4 MWp Solar Ground Mount Power Plant worth over Rs. 8.46 crores and and to be completed within 6 months as per the terms of the order.
Additionally, Solex Energy received a work order from Shree Vasudev Processors Pvt. Ltd., Surat for a 2 MWp Solar Ground Mount Power Plant worth more than 7.05 crores and and to be completed within 6 months as per the terms of the order. All orders received pertain to the promoter group.
Also read
Financials:
Looking at the company’s financial statements, the revenue magnified by 194 percent from Rs. 93 crores during H1FY24 to Rs. 273 crores in H2FY24. In addition, the net profits surged by 800 percent from Rs. 1 crore to Rs. 8 crores during the same period.
Manufacturing Facilities:
The company has a 700 MW PV module production capacity factory and a 1.2 GW solar PV module manufacturing facility with an in-house Reliability Test Lab in Gujarat.
Earlier, in May 2024, Solex Energy announced plans to expand its module production capacity by an additional 800 MW by signing an MoU with GMEE Solar and Wuxi Tidewinner Industrial International Co., Ltd. This will bring their total production capacity to 1.5 GW by the end of September 2024.
Moreover, the company aims to further expand its production capacity to 4.5 GW by FY 2025-26 to meet the growing global demand for high-quality Made in India solar modules.
Important Financial Ratio:
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 7.20 percent during FY 22-23 to 18.88 per cent in FY 23-24, and, the return on capital employed (RoCE) zoomed from 10.96 percent to 22.74 percent during the same timeframe.
Shareholding Pattern:
According to the latest shareholding pattern, Promoters control 70.66 percent of the stake, while DIIs hold 1.10 percent. The remaining 28.24 percent is owned by Retail Investors.
Company Profile:
Headquartered in Surat, Solex Energy Ltd was incorporated in 2014. The company is engaged in the manufacturing of solar panels and other renewable energy devices and the installation of systems on an EPC basis.
Written By Vaibhav Patil
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.
