The shares of this small-cap company fell around 4 percent in Tuesday’s trading session despite announcing a record date for bonus shares of 1:4. On a YTD basis, the shares have delivered more than 200 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 1,366 crores, the shares of Solex Energy Ltd started Tuesday’s trading session on a higher note at Rs. 1,824.95 compared to its previous close of Rs. 1,766.05.
During the trading session, the shares hit a low of Rs. 1,673, losing around 4 percent and are currently trading at Rs. 1,706.95 apiece.
What Happened:
As per the exchange filing, the company has fixed the “Record Date” for the issuance of bonus shares as September 13, 2024.
The bonus shares will be issued to the Shareholders of the Company in the ratio of 1:4 i.e., 1 new fully paid-up Equity Share of Rs. 10 each for every 4 existing fully paid-up Equity Shares of Rs. 10 each held by the eligible Shareholders of the company as on the record date.
Also Read: Stock jumps 13% after company’s board to consider share buyback
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.
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.
Additionally, Solex Energy has revealed plans to increase its module production capacity by 800 MW through a Memorandum of Understanding (MoU) with GMEE Solar and Wuxi Tidewinner Industrial International Co., Ltd. This expansion will raise 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:
As per the most recent shareholding pattern, the Promoters hold 70.66 percent of the stake, Foreign Institutional Investors (FIIs) have 0.03 percent, and Domestic Institutional Investors (DIIs) possess 1.12 percent. The remaining 28.24 percent is held 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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