Solar Energy stock engaged in manufacturing solar photovoltaic modules and providing turnkey solar solutions hit a 10 percent upper circuit in the day’s trade upon receiving a new work order worth Rs. 52 Crores and capex plans of Rs. 8,000 Crores.
Price Action
With a market capitalization of Rs. 1,686 Crores, the shares of Solex Energy Limited hit a 10 percent upper circuit in the day’s trade at Rs. 1561 per equity share, from its previous day’s close price of Rs. 1,419.10.
What Happened
Solex Energy Limited has received a new work order from Zodiac Energy Limited, Ahmedabad for the supply and installation of 40 MWp Solex Mono Perc Bifacial Solar Modules for a consideration of Rs. 51.97 Crores and it should be completed within 6 months.
In Addition, as part of its 2030 vision, it has announced investments exceeding Rs. 8,000 Crores for advancing towards solar technology and scaling operations, positioning the company as a fully integrated solar player.
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Solex is exploring the development of a new cell manufacturing facility with an initial capacity of 2 GW, with a scaling capacity of up to 5 GW. Its module manufacturing capacity will also be increased from 1.5 GW to 15 GW. Solex Energy also aims to expand its workforce to over 25,000 to support this growth.
About the Company
Solex Energy Limited is engaged in the manufacturing of solar photovoltaic modules and providing turnkey solar solutions across different segments, such as solar power plants, solar water pumps, utility-scale ground-mounted solar power plants, and many others. It has a 1.5 GW solar module manufacturing capacity.
It has a strong clientele base with well-known players like Indian Oil Corporation Limited, Torrent Power, Oil & Natural Gas Limited, Amul, Taj, Indian Post, Indian Institute of Management, NPCIL, and many others.
It undergoing Brownfield expansion to achieve a target capacity of 4.0-4.5 GW for Solar Module Manufacturing & exploring expansion into cell manufacturing for 2 GW.
Financials and Ratios
Its revenue from operations grew by 127 percent from Rs. 161 Crores in FY23 to Rs. 366 Crores in FY24, accompanied by profits of Rs. 3 Crores to Rs. 9 Crores.
In terms of Return ratios, it has delivered a return on equity(ROE) of 20.8 percent and a return on capital employed (ROCE) of 17.9 percent. It has maintained a debt-to-equity ratio of 2.08.
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Written by: Bharath K.S
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