Shares of this micro-cap stock fell around 12 percent in Wednesday’s trading session after the company posted disappointing results for the half-year ended September 2023. Keeping today’s sluggish stock behavior aside, the company’s stock has delivered more than 60 percent returns in the past year.
With a market capitalization of Rs 410 crores, the stocks of Solex Energy Limited started their trading session on Wednesday at Rs 463.55 and currently trades at Rs 512, slipping around 12 percent compared to the previous closing levels of Rs 579 apiece.
Such a sharp fall in the company’s stock price was observed after it announced weak financial results for the half-year ended September 2023.
Comparing H2FY23 v/s H1FY24, the company’s operating revenues as well as net profits (from continuing operations) declined with the former reducing from Rs 141 crores to Rs 93 crores, and, the latter, during the same period, shifting down from Rs 3 crores to Rs 73 lakhs exhibiting a fall of around 77 percent.
On a contrasting note, the company, comparing H1FY23 v/s H1FY24, has shown a comparatively decent move as far as the abovementioned metrics are concerned.
The operating revenues increased from Rs 21 crores to Rs 93 crores, and, the net profits (from continuing operations), keeping the timeframe the same, transitioned from a loss of Rs 46 lakhs to a profit of Rs 73 lakhs.
In the past couple of financial years, the company’s financial performance has been appealing thereby increasing profitability metrics such as the return on equity (RoE) as well as return on capital employed (RoCE).
The former increased from 3.37 percent during FY21-22 to 7.46 percent during FY22-23, and, the latter, during the same period, moved up from 4.39 percent to 11.98 percent.
The latest shareholding pattern data, as per the September 2023 quarter, portrays the company’s Promoters holding a 70.65 percent stake followed by the Public (retail) investors holding the remaining 29.35 percent stake in the company.
Founded in 1998, Solex Energy Limited is engaged in the business of manufacturing as well as selling solar photovoltaic modules in India. The company provides solar turnkey solutions for solar water pumps and utility-scale ground-mounted solar power plants.
Written by Amit Madnani
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