In Tuesday’s trading session, shares of one of the leading renewable energy stock, specializing in the development and installation of solar power systems, jumped 4 percent upon incorporating a new subsidiary to expand its presence in the solar power industry.
Price action
With a market capitalization of Rs. 6,897.27 crores on Tuesday, the shares of Insolation Energy Limited were trading at Rs.3,260 down by 1.5 percent making a low of Rs. 3,226 per share compared to its previous closing price of Rs. 3,310.90 per share.
What Happened
Insolation Energy Limited, specializing in the development and installation of solar power systems, has incorporated a subsidiary, MGVI Green Infra One Private Limited, to expand its presence in the solar power industry.
The new company, with an authorized share capital of Rs.1,00,000, will engage in the business of solar power plant development, including the erection, installation, establishment, construction, operation, maintenance, and consultancy of renewable energy power plants and also includes the design, supply, erection, testing, commissioning, and comprehensive operation and maintenance (O&M) of Rooftop solar photovoltaic projects.
Insolation Energy holds a 60 percent stake in MGVI Green Infra One, while promoters Mr. Vikas Jain and Mr. Manish Gupta each holds a 20 percent stake.
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.
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 120 percent from Rs 278 crore to Rs 612 crore in H1FY24-25. Meanwhile, Net profit rose from Rs 15 crores to Rs 61 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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