The shares of the wind power solution provider gained up to 1 percent after the company signed the Power Purchase Agreement with Gujarat Urja Vikas Nigam Limited.
With a market capitalization of Rs 2,933.03 crore, the shares of K.P. Energy Ltd were trading at Rs 441.15 per share, increasing around 0.03 percent as compared to the previous closing price of Rs 440.90 apiece.
Reason for rise:-
According to the company filing, K.P. Energy Ltd signed the Power Purchase Agreement with Gujarat Urja Vikas Nigam Limited to develop the 30MW wind power project under its IPP segment and sell the energy to GUVNL as per the terms of the PPA.
Moreover, the company shall develop the wind power project and sell the energy to GUVNL at the approved tariff of Rs. 2.43/- per unit for the operational life of the project. Additionally, This order marks a significant milestone for the Company, as the execution of this project will expand the company’s existing IPP capacity to approximately 50 MW.
Company financial:-
Examining the company’s financial condition, revenue jumped by 12 percent from Rs 113 crore in Q1FY24 to Rs 127 Q1FY25 but during the same time frame, net profit magnified exceptionally by 20 percent from Rs 15 crore to Rs 18 crore.
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Order book & EPC projects:-
K.P. Energy Limited (KPEL) reported a remarkable increase in its outstanding order book, which reached ₹1,320 crore as of June 1, 2024. This figure represents 2.81 times its total operating income (TOI) for FY24, a substantial rise from ₹65.16 crores recorded on the same date in 2023.
As of March 31, 2024, KPEL’s order book included three Engineering, Procurement, and Construction (EPC) orders valued at ₹558.38 crore. The unexecuted portion of the order book was ₹65.16 crore at that time, indicating a focused yet robust project pipeline.
KPEL is also advancing discussions for two significant projects of 300 MW each at the Dwarka site with Apparva Energy Private Limited, valued at ₹500 crore each. Additionally, a similar project at the Vanki site with Ayana Renewable Private Limited is in progress for the same contract value.
Furthermore, KPEL has submitted a bid to NTPC Limited for a substantial 600 MW project worth ₹1,200 crore. This potential contract would further enhance KPEL’s position in the renewable energy sector and diversify its project portfolio.
Remarkable Return:-
The stock gave a return of 74 percent in six months and a multi-bagger return of 165 percent in just a year. If an investor invested Rs 1 lakh a year ago, it would now be worth Rs 2.65 lakh.
Strategic Investment:-
KP Energy has made a significant investment of ₹17,690 crore for renewable energy projects in Gujarat, indicating its commitment to sustainable development. This financing will support various Memorandums of Understanding (MoUs) with the Gujarat government, to extend their operational presence and improve project execution skills.
Industry Outlook:-
India’s commitment to renewable energy, notably through state-level efforts such as Gujarat’s Renewable Energy Policy for 2023-2028, is consistent with KP Energy’s strategic objectives. The strategy intends to decentralize renewable energy generation and reduce capacity constraints, which would most likely increase demand for KP Energy’s services as they extend their project pipeline.
Company profile:-
K.P. Energy Limited is primarily engaged in wind farm development, development of wind power projects and allied services related to it along with the generation of electricity through wind power generating assets and operation and maintenance services of wind power projects primarily in India.
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Written by:- Abhishek Singh
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