Shares of this smallcap company locked 5 percent upper circuit after receiving an order for social media advertising. On a YTD basis, the shares have delivered a multibagger return of 248 percent to its shareholders.
Price Movement:
With a market capitalization of Rs. 1,184 crores, the shares of Solex Energy Ltd started Tuesday’s trading session on a higher note at Rs. 1,489.80 compared to its previous close of Rs. 1,433.10. During the trading session, the share clocked a 5 percent upper circuit at Rs. 1,504.75 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had signed a contract with Creative and Digital Marketing Agency, Rioconn Interactive Private Limited.
The purpose of this agreement is to leverage Rioconn’s expertise in planning, preparing, and placing social media advertising campaigns to promote Solex’s solar energy solutions.
Financials:
Looking at the company’s financial statements, the revenue magnified by 194 percent from Rs. 93 crores during H1FY24 to Rs. 273 crores in H2FY24. In addition, the net profits surged by 800 percent from Rs. 1 crore to Rs. 8 crores during the same period.
Recent Developments:
Earlier, the company Solex Energy Limited received a work order under “Mukhyamantri Gramin Solar Street light Yojna” in Supaul District, Bihar for 5,220 No. of Units of over Rs. 16 crores.
Furthermore, the company had received a work order from Colour Fashions Pvt Ltd, Surat for the installation of a 1 MW Solar Ground Mount Power Plant worth Rs. 3.40 crores, to be completed within 6 months as per the terms of the order.
Manufacturing Facilities:
The company has a 700 MW PV module production capacity factory and a 1.2 GW solar PV module manufacturing facility with an in-house Reliability Test Lab in Gujarat.
Furthermore, in May 2024, Solex Energy announced plans to expand its module production capacity by an additional 800 MW by signing an MoU with GMEE Solar and Wuxi Tidewinner Industrial International Co., Ltd. This will bring their total production capacity to 1.5 GW by the end of September 2024.
Moreover, the company aims to further expand its production capacity to 4.5 GW by FY 2025-26 to meet the growing global demand for high-quality Made in India solar modules.
Important Financial Ratio:
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 7.20 percent during FY 22-23 to 18.88 per cent in FY 23-24, and, the return on capital employed (RoCE) zoomed from 10.96 percent to 22.74 percent during the same timeframe.
Shareholding Pattern:
According to the latest shareholding pattern, Promoters control 70.66 percent of the stake, while DIIs hold 1.10 percent. The remaining 28.24 percent is owned by Retail Investors.
Company Profile:
Headquartered in Surat, Solex Energy Ltd was incorporated in 2014. The company is engaged in the manufacturing of solar panels and other renewable energy devices and the installation of systems on an EPC basis.
Written By Vaibhav Patil
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