Small-Cap stock engaged in offering engineering, procurement, and construction (EPC) services for the development of solar power plants, energy storage solutions, and many more hit a 5 percent upper circuit upon receiving a work order from Gujarat Urja Vikas Nigam Limited for Battery Energy Storage Systems
With a market capitalization of Rs. 4,040 Crores, the shares of Gensol Engineering Limited hit a 5 percent upper circuit at Rs. 1,066.85, from its previous day’s close price of Rs. 1,016.05.
In regard to the work order that was earlier awarded by Gujarat Urja Vikas Nigam Limited dated June 12, 2024, to Gensol Engineering Limited for a 250 MW/500 MWh standalone Battery Energy Storage Systems (BESS) project worth Rs. 1,340 Crores, along with a possible greenshoe option of awarding work for a second tranche of 250 MW/500 MWh.
Following the receiving of the above work order, Gujarat Urja Vikas Nigam Limited has awarded the work order to Gensol Engineering Limited for the second tranche under the greenshoe option allotment of 250MW/500 MWh for standalone Battery Energy Storage Systems (BESS) project to reach 500 MW / 1000 MWh capacity.
The project including the first and second tranche will generate a total revenue of Rs. 2685 Crores over the 12-year Battery Energy Storage Purchase Agreement (BESPA) tenure.
The project will supply electricity on an “On-Demand” basis to Gujarat State’s DISCOMs during peak and off-peak hours, thereby extending renewable energy availability beyond solar hours, fulfilling Energy Storage Purchase Obligations, and enhancing grid resilience. The project once commissioned at two Gujarat Energy Transmission Corporation (GETCO) substations, will deliver 500 MW/1000 MWh energy for two charge/discharge cycles per day.
Commenting on Gensol’s pivotal role sector’s growth in India, Anmol Singh Jaggi, Managing Director, Gensol Engineering Limited said, “We are proud to receive the second tranche under greenshoe option allotment from GUVNL taking our BESS order book to over Rs. 3100 Crore.
Gensol is committed to supporting India’s energy transition goals through innovative and sustainable solutions. Emerging as a successful bidder and being awarded additional allotment enables us to make a significant impact on the Indian energy market while solidifying our position as a leading industry player in the renewable energy landscape, propelling the future of BESS in India.”
Gensol Engineering Limited is part of the Gensol Group of companies, it is a leading player in the renewable energy sector in offering engineering, procurement, and construction (EPC) services for the development of solar power plants. It operates across four segments namely Solar EPC, Solar Panel Tracking Tech, EV Leasing, and EV Manufacturing.
Gensol Engineering Limited is Diversifying into EV manufacturing and EV leasing marking a strategic shift for Gensol, allowing for multiple revenue streams, reduced reliance on a single sector ensuring stability.
Gensol Engineering Limited has a strong order book of Rs. 1,783 Crores, with 33,693 MW+ Historical foundation of technical advisory services, 770 MW+ Ground mounted, rooftop, and floating solar EPC projects and it has 6,000+ EVs on lease.
It has a strong customer base with well-known players like Gail, Astral Pipes, GMR, L&T Realty, SRF, Hitachi, Hindalco, RBI, Trident Energy and many others.
Its revenue from operations grew by 151.16 percent from Rs. 144.49 Crores in Q4FY23 to Rs. 362.9 Crores in Q4FY24, accompanied by profits of Rs. 8.43 Crores to Rs. 34.81 Crores.
In terms of return ratios, it has reported a return on equity (ROE) of 20 percent, a return on capital employed (ROCE) of 14.6 percent, and a debt-to-equity ratio of 4.63.
Written by: Bharath K.S
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