Shares of this smallcap company jumped around 3 percent in Monday’s trading session after receiving an order worth Rs. 463 crores for solar plant in Gujarat.
Price Movement:
With a market capitalization of Rs. 3,746 crores, the shares of Gensol Engineering Ltd started Monday’s trading session on a higher note at Rs. 1,005, gaining around 3 percent compared to its previous close of Rs. 966.60 and are currently trading at Rs. 987 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had received a Notification of Award for the Engineering, Design, Procurement, Erection, Testing and Commissioning worth Rs. 463 crores Solar plant at Khavda RE Power Park, Rann of Kutch, Gujarat.
The project will be state-of-the-art with a fixed tilt module mounting structure along with the remaining balance of the system.
Financials:
Looking at the company’s financial statements, the revenue zoomed by 82 percent from Rs. 220 crores during the December quarter to Rs. 399 crores March quarter. On the other hand, the net profits surged by 67 percent from Rs. 12 crores to Rs. 20 crores during the same timeframe.
Order Book:
Gensol Engineering Limited has a strong order book of Rs. 1,783 Crores, with more than 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.
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Recent Development:
Earlier, Gensol Engineering emerged as the winning bidder for 116 MW (150 MWp) of solar projects in Gujarat with approx. EPC revenue of Rs. 600 crores. These projects will be distributed across 27 diverse locations, all under the purview of Paschim Gujarat Vij Co. Ltd. (PGVCL), the state electricity distribution company.
These projects aim for feeder-level solarisation and are anticipated to be operational within 12 months following the issuance of the Letter of Award (LoA).
Customer Base:
The company serves a strong customer base that includes prominent names such as Gail, Astral Pipes, GMR, L&T Realty, SRF, Hitachi, Hindalco, RBI, Trident Energy, and several others.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 18.28 percent and a return on capital employed (RoCE) of 12.41 percent for the period spanning FY23-24. Furthermore, the net profit margin during FY23-24 was at 5.55 percent.
Company Profile:
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.
Written By Vaibhav Patil
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