Small-cap stock gains 9 percent after it bags orders worth Rs. 301.54 Crores from Maharashtra State Power Generation Co. Ltd for installation and commissioning of a solar power plant.
At 12:10 p.m the shares of Gensol Engineering Limited were trading at Rs. 872 per share, up 4 percent from its previous day close price and its market capitalization is Rs. 3,296 Crores.
As per the company’s filing, Gensol Engineering Limited has bagged orders worth Rs. 301.54 Crores from Maharashtra State Power Generation Co. Ltd for installation and commissioning of a solar power plant which includes(conceptualization, engineering, provisioning, installation, testing, and commissioning of a state-of-the-art 62 MW AC Crystalline Solar PV Technology Grid Interactive Solar PV Power Plant) and the project is to be completed within 12 months.
Beyond the primary Solar PV Power Plant setup, Gensol’s responsibilities extend to the establishment of the associated HT overhead transmission line/underground cable, supplemented with all essential electrical equipment. It also encompasses the creation of bays culminating at the point of interconnection at the 220 kV bays at Paras Substation.
Additionally, Gensol is entrusted with a 5-year operation & maintenance stewardship of the solar power plant and its associated evacuation mechanism.
The company’s revenue grew 144.78 percent from Rs. 160.41 Crores in FY22 to Rs. 392.65 Crores in FY23, accompanied by increasing profits of Rs. 11.09 Crores. to Rs. 24.91 Crores.
It has reported a return on equity(ROE) of 19.38 percent and a return on capital employed (ROCE) of 11.95 percent, it is making good returns on its equity but is struggling to make good returns on its capital employed.
According to the latest shareholding data available for the June 2023 quarter, the company’s Promoters hold 64.67 percent stake, Domestic Institutional Investors hold 0.75 percent and Foreign Institutional Investors hold 2.57 percent.
Gensol Engineering Limited is part of the Gensol Group of companies, it offers engineering, procurement, and construction (EPC) services for the development of solar power plants.
Written by: Bharath K.S
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