Shares of this green energy stock under the ‘small-cap’ category hit the 5 percent upper circuit in Monday’s trading session after the company announced financial results for H2FY24, i.e., for the half-year ended March 2024. In the past month, the company’s stock has delivered multibagger returns of nearly 140 percent returns to its stakeholders.
With a market capitalization of Rs 2,526.75 crores, the stocks of KP Green Engineering Limited started their trading session on Monday hitting its 5 percent upper circuit at Rs 505.35 and, currently, the stock is locked at the same price.
Such sharp movements in the share price were witnessed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced the financial results for H2FY24, viz, half-year ended March 2024.
On a half-yearly basis, the company reported stellar financial performance with the total income increasing from Rs 104 crores during H1FY24 to Rs 248 crores during H2FY24. Moreover, the company’s net profits more than doubled from Rs 11 crores to Rs 24 crores.
Comparing H2FY23 v/s H2FY24, the metrics mentioned above, in congruence, showed positive movements with the total income jumping from Rs 53 crores to Rs 248 crores, and the net profits, keeping the timeframe the same, shifted up from Rs 5 crores to Rs 24 crores representing an increase of 380 percent.
In addition, the company’s ratio analysis portrays the return ratios, i.e., the return on equity (RoE) as well as the return on capital employed (RoCE), being reported at decent numbers during FY24 with the former reported at 13.26 percent and the latter at 15.50 percent.
According to the latest presentations, the company’s existing manufacturing capacity stands at 53,000 metric tons per annum (MTPA) and the company’s ‘Hot Dip Galvanizing Plant’ (automated & encapsulated) proposes a capacity expansion of approximately 90,000 MTPA.
Founded in 1994, KP Green Engineering Limited is engaged in the business of manufacturing as well as selling hot-dip galvanized and fabricated steel products in India. Its product portfolio includes substation structures, solar module mounting structures, earthing strips, cable trays, and other infrastructure solutions.
Written by Amit Madnani
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