Shares of this smallcap company clocked 5 percent lower circuit despite receiving multiple orders for Solar Ground Mount Power Plant and Solar Power Plant Rooftop. On a YTD basis, the shares have delivered a multibagger return of 230 percent to its shareholders.
Price Movement:
With a market capitalization of Rs. 1,168 crores, the shares of Solex Energy Ltd started Tuesday’s trading session on a flatter note at Rs. 1,514.15. During the trading session, the shares clocked a 5 percent lower circuit at Rs. 1,438.45 apiece.
What Happened:
According to the exchange filing, the company received a work order from Colour Fashions Pvt Ltd, Surat for the installation of a 1 MW Solar Ground Mount Power Plant worth Rs. 3.40 crores and to be completed within 6 months as per the terms of the order.
Additionally, the company received another work order from Inorbit Malls (India) Pvt. Ltd, Malad for the installation of Solar Power Plant Rooftop, capacity of 303 KW worth over Rs. 93.10 lakhs and to be completed within 3 months as per the terms of the order.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had received a work order from Eminent Paper Industries LLP, Kosamba for the installation of a 6 MW Ground Mount Solar Power Plant worth over Rs. 17.82 crores and to be completed within 6 months as per the terms of the order.
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.
Recent Developments:
Earlier, Solex Energy received a work order from Eminent Paper Industries LLP, Kosamba for the installation of a 6 MW Ground Mount Solar Power Plant worth over Rs. 17.82 crores. To be completed within 6 months as per the terms of the order.
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
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