Shares of a leading player in solar panel module manufacturing slumped nearly 5.3 percent on BSE to Rs. 3,358 on Friday, despite the company receiving an order worth Rs. 208.3 crores for the supply of Solar PV Modules at NTPC Khavada Gujarat Site.
With a market cap of Rs. 7,068.3 crores, at 11:12 a.m., the shares of Insolation Energy Limited were trading in the red at Rs. 3,393, down by nearly 4.3 percent, as against its previous closing price of Rs. 3,546.5.
What’s the news:
Insolation Green Energy Private Limited, a wholly-owned subsidiary of Insolation Energy Limited, has secured a purchase order valued at Rs. 208.31 crores from Zetwerk Manufacturing Business Private Limited.
According to the latest regulatory filings with the BSE, the purchase order involves the supply of 550 WP (Watt-peak) solar photovoltaic (PV) modules for the NTPC Khavada site in Gujarat, to be completed within the financial year 2024-25.
Previous News & Orders:
On 27th August, Insolation Green Energy Private Limited, a wholly-owned subsidiary of Insolation Energy Limited, bagged a purchase order worth Rs. 30.54 crores from Rays Green Energy Manufacturing Private Limited, for the supply of 545 WP Solar PV Modules, to be executed within FY24-25.
Additionally, during a board meeting on October 15, the company approved the issuance of up to 12,23,500 equity shares with a face value of Rs. 10 each at an issue price of Rs. 3,287 per share, including a premium of Rs. 3,277. This will be conducted in one or more tranches, aiming for a total consideration of up to ~Rs. 402.2 crores on a preferential basis to non-promoter entities.
Financials:
The company reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 164.2 percent, rising from Rs. 279 crores in FY23 to Rs. 737 crores in FY24.
Likewise, during the same period, the company’s net profit increased from Rs. 11 crores to Rs. 55 crores, representing a growth of around 400 percent YoY.
Future Outlook:
Insolation Energy Ltd recorded a volume growth of over 150% year-on-year. As module and solar cell prices have decreased, the company has managed to maintain and improve its gross spreads, leading to an expansion in profit margins.
The company anticipates sustaining and enhancing its current margins. It plans to add an additional 3GW of solar module capacity, bringing the total to 4GW, along with 12,000 MT of aluminium frame manufacturing capacity before the end of FY25.
Further, the company aims to establish 1.5GW of cell manufacturing capacity by the end of the next financial year, having already secured the necessary technology partnerships.
In the next phase of expansion, the company envisions reaching 6.5GW of operational solar modules and 3GW of solar cell manufacturing capacity within the next three years. Insolation Energy expects to achieve over $1 billion in revenue with profit-after-tax margins exceeding 10 percent in the same timeframe.
Key Financial Ratios:
In terms of key financial metrics, Insolation Energy reported a Return on Equity (RoE) of 68.5 percent and a return on capital employed (RoCE) of 47.8 percent for the period spanning FY23-24. Further, the net profit margin stood at 7.52 percent during the same timeframe.
Stock Performance:
The stock has delivered multibagger returns of nearly 528.3 percent in one year, while around 99.2 percent of positive returns in the last six months. So far in 2024, the shares of Insolation Energy have given multibagger returns of about 328 percent.
About the company:
Insolation Energy Limited is mainly engaged in the business of manufacturing of a wide range of Solar Panels which includes Solar Module, Solar PCUs, and Solar Battery, under the brand name INA.
Written by Shivani Singh
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