Shares of this microcap company jumped 7 percent in Friday’s trading session after receiving multiple orders to install solar PV modules. In one year, the shares have delivered more than 90 percent return to its investors. 

With a market capitalisation of Rs. 530 crores, the shares of Solex Energy Ltd started Friday’s trading session on a higher note at Rs. 668 compared to its previous close of Rs. 616. During the trading, the shares hit a high of Rs. 720, gaining around 7 percent and are currently trading at Rs. 663 apiece. 

Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had received an order from Sun Industrial Automation and Solutions Private Limited to supply Bi Facial Solar PV Module 550Wp, with a capacity of 8 MW worth Rs. 12.93 crores, and the orders are to be completed by the end of June 2024. 

Furthermore, the solar company received another order from Aadhav Green Power Private Limited, to supply 78,181 units of Solar PV Bifacial and Monofacial 550Wp, with a Capacity of 43 MW approx worth Rs. 68.60 crores, and the orders are to be completed by the end of June 2024. 

Coming onto the company’s financial statement, the revenue zoomed by 123 percent from Rs. 72 crores during FY21-22 to Rs. 161 crores in FY22-23. In addition, the net profits magnified by 200 percent from Rs. 1 crore to Rs. 3 crores during the same timeframe. 

Solex Energy Ltd incurred debt-led capex of around Rs. 590 million in FY22 and FY23 to expand its production capacity by 600MW in FY23. Of the total capex, Rs. 400 million was funded through the bank and the remaining through internal accruals. The commercial operations started in October 2022 and by FY24 will be the first full year of operations for this unit. 

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 3.38 percent during FY 21-22 to 7.46 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 3.90 percent to 11.36 percent during the same timeframe. Furthermore, the net profit margin increased from 1.38 percent during FY21-22 to 1.68 percent during FY22-23. 

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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