Gensol Engineering Ltd has witnessed increased investor interest as the stock skyrocketed 2,621.93 per cent in the past year. Until the end of last year, the company was relatively less known. It was a solar consultant and an operator of a fleet of electric cabs. Then it kicked off its plan to manufacture electric vehicles.
Price Movement
The company’s shares hit the 5 per cent upper circuit on Monday and was locked at ₹ 1791.95 apiece. Its shares have gained 23.16 per cent in the past five days, 89.83 per cent in the past month,707.18 per cent in the past six months and a whopping 2757.97 per cent in the past year! Analysts say that the shares mainly surged on the back of a positive outlook.
The company’s share price increased from ₹ 62.70 levels to ₹ 1791.95, giving multibagger returns of 2757.97% in the past year. If an investor had invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 28.57 lakhs today!
About the company
The company is controlled by Anmol Singh Jaggi and his younger brother Puneet Singh Jaggi. It started as a solar plant advisory and engineering and procurement company and then diversified into electric vehicle leasing. The promoters also founded BluSmart Mobility in 2019, a Gurugram-based electric car fleet operator.
Future Prospects
As per a research report by JP Morgan, Gensol will start manufacturing three-wheeled electric vehicles for personal use and cargo EVs from October. Further, it plans to manufacture electric four-wheelers from the next fiscal. It plans to manufacture 1,200 vehicles a month, starting from October and they will be delivered in January.
There is a huge scope for growth since the penetration of electric vehicles in India is at 1% and out of that Tata Motors leads with an 87% market share. Bajaj Auto Ltd leads in the internal-combustion engine segment.
Orders
Gensol engineering has bagged orders worth ₹ 153.16 crores for building solar power projects with a capacity totalling 58.8 MW in August. The company has closed seven deals, out of which five are based on a full turn-key EPC (engineering procurement construction) model, while two are Balance of System (BoS) projects.
Competition with Tata
The company said that its electric cars will have a range of 100-200 km and a speed of 80 kmph. It will take about three hours of charging time and be priced at ₹ 5 lakhs to ₹ 6 lakhs. At present, Tata Tigor is the only inexpensive electric car in this segment and it costs about ₹ 12 lakhs, followed by Tata Nexon which is priced at over ₹ 14 lakhs.
SME to Mainboard
The stock is currently listed on the SME Platform (Small and Medium Enterprises). However, 1.09 crore shares of the company will soon switch to the main board on the bourses, as per a June filing to the stock exchange.
Gensol Engineering on August 19, 2022, approved the allotment of up to 13.51 lakh equity shares at ₹ 1036.25 apiece on a preferential basis to its promoters and non-promoter group category.
Written by Simran Bafna
Disclaimer
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