In Friday’s trading session, shares of one of the leading renewable energy stock, specializing in the development and installation of solar power systems, in focus following the securing of land for a major manufacturing expansion in Madhya Pradesh.
Price action
With a market capitalization of Rs. 6,588.33 crores on Friday, the shares of Insolation Energy Limited were trading at Rs.3,081 down by 4 percent making a low of Rs. 3,011.05 per share compared to its previous closing price of Rs. 3,162.60 per share.
What Happened
Insolation Energy Limited, specializing in the development and installation of solar power systems, announces that its wholly owned subsidiary, Insolation Green Energy Private Limited, has received an allotment of 1,82,108.5 square meters of land at the Power and Renewable Energy Equipment Manufacturing Zone in Mohasa, Babai, Madhya Pradesh.
This early allocation of land marks a significant step toward achieving the company’s $1 billion revenue target. The new facility will be the fourth and largest manufacturing unit for the Insolation Group, doubling its solar module manufacturing capacity and adding solar cell and aluminum framing production for backward integration.
With this capacity expansion, the Insolation Group’s total manufacturing capacity will reach 8 GW for solar modules, 3 GW for solar cells, and 36,000 MT for aluminum frames. The company plans to keep stakeholders informed on the progress of this project.
About the company
Insolation Energy Ltd. is a leading company in the renewable energy sector, specializing in the development and installation of solar power systems. The company focuses on providing clean energy solutions and offers a wide range of services, including the design, engineering, procurement, and commissioning of solar power plants.
Insolation Energy is committed to promoting sustainable energy through innovative solar technologies, catering to residential, commercial, and industrial clients. By leveraging the latest technologies in solar energy, the company enhances the performance, efficiency, and cost-effectiveness of its projects.
Key Insights
The company has strong financial metrics, with promoter shareholding exceeding 65 percent. Over the past three years, it has maintained a solid average Return on Equity (ROE) of 32.43 percent and an impressive average Return on Capital Employed (ROCE) of 22.23 percent.
Shareholding Pattern
Insolation Energy Limited’s ownership is divided as follows: promoters hold 66.22 percent, Foreign Institutional Investors (FIIs) have 1.35 percent, Domestic Institutional Investors (DIIs) own 0.15 percent, and the public holds 32.27 percent.
Financials
The company’s revenue rose by 118 percent from Rs 280.06 crore to Rs 612 crore in H1FY24-25. Meanwhile, Net profit rose from Rs 15.04 crores to Rs 61.27 crore during the same period.
Key Financial ratios
Insolation Energy Limited has an impressive Return on Equity (RoE) of 59.97 percent and a Return on Capital Employed (RoCE) of 52.73 percent. Furthermore, the company’s debt-to-equity ratio is 0.41.
Written by Sridhar J
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