With a market capitalization of ₹ 398 crores, KP Energy is a microcap company. It is a balance of plant (BoP) solution provider for the wind energy industry. It engages in the process of wind farms, right from conceptualization until the commissioning of the project, and undertakes projects principally in Gujarat.
In a recent exchange filing, it said that its board has fixed Friday, March 10, 2023, as the record date for determining the eligibility of shareholders for the purpose of subdivision/split of equity shares having a face value of ₹ 10 each (fully paid-up) into 2 equity shares having face value of ₹ 5 each (fully paid-up).
K.P. Energy’s shares have given multibagger returns of 451.05% in the past two years, as its share price increased from ₹ 64.05 to ₹ 352.95 apiece. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares two years ago, the value of their holdings would have been ₹ 5.51 lakhs today!
The company has an ideal return on equity of 23.90% and an ideal debt-to-equity ratio of 0.21. Its shares were trading at a price-to-earnings ratio (P/E)of 12.28, which is lower than the industry P/E of 17.38, indicating that the stock might be undervalued as compared to its peers.
Written by Simran Bafna
