The share price of this small-cap power stock hit 5 percent upper circuit at Rs 2,223 per share after the company signed an MOU with Splitwaters, a US-based firm to develop green hydrogen and E-fuel facilities in India.
Share price movement: With a market capitalization of Rs 4,265.25 crores, the shares of Oriana Power Limited hit 5 percent upper circuit trading at Rs 2,223 apiece on Thursday. The shares of Oriana Limited generated both multi-bagger returns of 636 percent over the past one year and 215 percent over the past 6 months.
What happened: From Oriana Power Limited’s latest stock exchange filings, the firm has signed an MOU with a US-based company named Splitwaters for supplying electrolyzers and all necessary equipment for green hydrogen projects in order to develop green hydrogen and E-fuel facilities across India.
Under this partnership, Oriana Power will handle the business development and project execution in India and will provide the electrolyzer and other equipment needed for green hydrogen projects along with engineering, procurement, and construction services.
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Why it matters: Additionally, using Splitwater’s innovative technology in the alkaline electrolyzer and other equipment this partnership aims to cut the capital expenditure of green hydrogen and e-fuel (green ammonia, e-methanol, and green methanol) projects by upto 30 percent making it more efficient and affordable.
The filings also mentions that Oriana Power will also work with Splitwaters green hydrogen and e-fuel projects outside India by leveraging Splitwater’s capabilities and market reach in order to push the industry forward.
In the beginning, Splitwaters will provide electrolyzers and Balance of Plant (BOP) equipment from the United States. Meanwhile, both companies are also collaborating to establish a factory in India to produce these electrolyzers and BOP modules locally.
Splitwaters, located in Houston, Texas, is a company that manufactures electrolyzers and provides engineering, procurement, construction, and commissioning services. They specialize in creating cost-effective green hydrogen and e-fuel plants.
Financials: Reviewing the financials of Oriana Power Limited on a year-on-year basis, the sales of the firm increased by 181 percent from Rs 136 crores in FY23 to Rs 383 crores in FY24. In the same time frame, the net profits increased from Rs 11 crores to Rs 54 crores, highlighting a 390 percent increase.
Ratios: In terms of return ratios for the year 2024, it has reported a return on equity of 36.46 percent and a return on capital employed of 51.12 percent. For the same period, the net profit margin of the firm stood at 14.61 percent.
EBITDA: The Earnings before interest taxes depreciation and amortization (EBITDA) of Oriana Power Limited Stood at Rs 82.78 crores as of FY24 highlighting a 312 percent jump from an EBITDA of Rs 20.10 crores as of FY23.
Debt to equity: Oriana Power Limited witnessed a reduction in debt to equity ratio by 44 percent which stood at 2.29 times in FY23 to 1.27 times in FY24.
Recent orders: As of July 2024, the company received a new order worth Rs 15 crores from a tyre industry for the commissioning, operation, and maintenance of a 4 MWp solar power plant in Gwalior, Madhya Pradesh for a time period of 9 months for operations and 15 years for its maintenance.
Shareholding Pattern: As of March 2024 the firm’s 61.4 percent is held promoters, 35.48 percent with the public, the FII holding is at 1.17 percent out of which Societe Generale-Odi holds 1.05 percent stake, and 1.94 percent for domestic institutional investors.
About the Company: Incorporated in 2013 and headquartered in Ghaziabad, Oriana Power Limited is engaged in two main business verticals: providing of EPC and operations of solar power projects, and offering solar energy solutions on a BOOT (build, own, operate, transfer) basis.
Written By Zahal
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