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The share price of this leading Renewable energy provider focused on providing solar power surged by 4.5 percent to an intraday high of Rs 1,863.65 per share on Monday after the firm signed a power purchase agreement with Gujarat Urja Vikas Nigam Limited.

Share price movement:

With a market capitalization of Rs 11,001.27 crores, the shares of KPI Green Energy Limited surged by 2.64 percent at 12:14 pm, trading at Rs 1,824.50 apiece during Monday’s afternoon market hours. The shares of this company generated a multi-bagger return of 231 percent over the past year and 96 percent over the past 6 months.

What happened:

According to KPI Green Energy Limited stock exchange filings, the company announced that they have signed a Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) for a 50MW Solar and 16.80 MW Wind Hybrid Power Project. The project was awarded through a bidding process as per the exchange filings.

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Why it matters:

This achievement helps KPI Green Energy Limited reach its ambitious goal of 1000 MWp capacity by the year 2025.

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Financials:

Reviewing the financials of KPI Green Energy Limited on a year-on-year basis, the revenues rose by 59 percent from Rs 644 crores in FY23 to Rs 1,024 crores in FY24. In the same time frame, the net profits increased from Rs 110 crores to Rs 162 crores, demonstrating a 47.2 percent growth.

As of FY24, the revenue share stood at 17.5 percent and 82.5 percent from the Independent Power Producer ( IPP) and the Captive Power Producer (CPP) respectively.

Ratios:

In terms of return ratios for the year 2024, it has reported a return on equity (ROE) of 19.34 percent and a return on capital employed (ROCE) of 19.68 percent. It has also reported a net operating margin of 29.63 percent for the same year.

Client base:

KPI Green caters to various prominent clients such as Zydus, Poly Cab, Tata Motors, L&T, Green Lab, etc.

Government initiatives:

The Government of Gujarat is actively working to utilize the state’s significant renewable energy potential, which includes around 36 GW of solar capacity and 143 GW of wind capacity. They aim to achieve 100 GW of renewable energy capacity by 2030, making Gujarat a leader in renewable energy development in India. KPI Green Energy is one of the market leaders for solar energy through third-party sales in Gujarat.

Recent developments:

KPI Green has also recently signed a memorandum of understanding (MoU) with Mahatma Phule Renewable Energy and Infrastructure Technology Limited (Mahapreit), a subsidiary of Maharashtra’s MPBCDC, to collaborate on various renewable energy projects.

Shareholding Pattern:

As of March 2024, the firm’s shareholding pattern stood at 53.08 percent for promoters, 40.7 percent for the public, 5.59 percent for foreign institutional investors, and 0.63 percent for domestic institutional investors.

About the Company:

Incorporated in 2008, KPI Green Energy Limited is part of KP Group. The company develops, builds, owns, manages, and maintains renewable power facilities (solar and wind-solar hybrid power projects) as an Independent Power Producer (IPP) and as a service provider to Captive Power Producers (CPPs) under the ‘Solarism’ brand.

Written By Zahal

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