Shares of this green energy company under the ‘micro-cap’ category are in focus after it successfully received a bunch of orders aggregating to Rs 14.22 crores. In the past month, the company’s stock gained approximately 35 percent for its holders.
With a market capitalization of Rs 941.44 crores, the stocks of Solex Energy Limited closed their trading session on Tuesday at Rs 1,176.80, hitting its 5 percent lower circuit compared to the previous closing level of Rs 1,238.70 apiece.
Keeping the intra-day stock price movements aside, the company, through its recent regulatory filings with the Bombay Stock Exchange (BSE), intimated the receipt of multiple orders aggregating to around Rs 50 crores.
Firstly, the company received a work order from “Radhadarshan Petropack LLP”, Surat for the ‘Solar Ground Mount Power Plant worth Rs. 10.22 crores (inclusive of all duties and taxes).
Moreover, the company also received work orders from two entities, viz, “Trion Properties Pvt. Ltd” (Inorbit Malls), Hyderabad, and “Inorbit Malls (India) Pvt. Ltd”, Malad, for ‘Solar Power Plant Rooftop’ worth Rs 1.32 crores and Rs 2.68 crores respectively (inclusive of all duties and taxes).
Historically, the green energy company reported an increase as far as the return ratios, viz, the return on equity (RoE) and the return on capital employed (RoCE), are concerned.
The former rose from 2.81 percent during FY21-22 to 7.20 percent during FY22-23, and the latter, during the same time horizon, took a drastic upward shift from 3.72 percent to 10.96 percent.
Having a glance at the recent financials, the company’s basic business indicators, viz, its operating revenues and after-tax profits, reported underperforming numbers with the former reducing from Rs 141 crores during H2FY23 to Rs 93 crores during H1FY24, and the latter, keeping the timeframe the same, took a downward shift from Rs 3 crores to Rs 1 crore.
Keeping a purview of the last year, the company’s stock has proven to deliver multibagger returns of approximately 195 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 2.95 lakhs.
Incorporated in 1998, Solex Energy Limited is engaged in manufacturing and selling solar photovoltaic modules in India. The company provides solar turnkey solutions for solar water pumps, solar power plants, and utility-scale ground-mounted solar power plants. It also offers solutions for commercial/industrial/utility ventures, residential rooftops, etc
Written by Amit Madnani
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