This Microcap stock which is engaged in the business of manufacturing and trading of solar plants or panels and trading of electronic equipment and solar equipment hit a 5 percent upper circuit after the company plans to invest in a gigafactory for Battery Energy Storage in Uttar Pradesh.
Price Action
With a market capitalization of Rs. 295.11 Crores, the shares of GP Eco Solutions India Limited were up by 5 percent in the day’s trade touching a day’s high of Rs. 252 per share. The stock stayed in the upper circuit limit and was 5 percent higher than the previous closing price of Rs. 240 per share. The stock has delivered negative returns of 33 percent on a YTD basis and underperformed the Nifty Index in the same period. The company was recently listed at Rs. 375 on the bourses which is 298.94 percent higher from the issue price.
What Happened
The stocks of GP Eco Solutions India rose after the company announced an investment in the Battery Energy Storage Systems (BESS) sector from the subsidiary of GP Eco Solutions India named iNVERGY India Private Limited. The company plans to invest in the establishment of a gigafactory in Uttar Pradesh with a cumulative production capacity of 5GWh which will be in operation in Q3FY26 adding to the existing capacity 500MWh in Noida.
Further, the investment will be in the development of state-of-the-art research and development centers focused on advanced storage technologies which include solid-state batteries and hybrid systems. They even plan to collaborate to create a supply chain ecosystem that focuses on raw materials, components, and recycling.
About the Company
GP Eco Solutions India Limited was founded in 2010. It is a distributor of solar energy products which includes solar inverters and panels in North India. They serve as an authorized distributor for brands like Sungrow and LONGi. Their business model focuses on providing engineering, procurement, and construction (EPC) services for both commercial and residential sectors.
Additionally, GP Eco Solutions focuses on sustainability by offering innovative solar solutions and customized products to meet client needs, positioning itself as a key player in the renewable energy market.
Financials & Ratios
Its Revenue from operations increased by 88.63 percent year on year from Rs. 44 Crores in H1FY24 to Rs. 83 Crores in H1FY25, accompanied by profits of Rs. 0.85 Crores to Rs. 4.89 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 47.36 percent and a return on capital employed (ROCE) of 40.31 percent. It has reported a debt-to-equity ratio of 0.93.
Shareholding Pattern
As of September 2024, the shareholding pattern with promoters stake holding a share of 62.23 percent in GP Eco Solutions India, Foreign Institutional Investors (FII) holding around 0.40 percent, Domestic Institutional Investors (DII) holding around 0.05 percent, and public holdings standing at 37.32 percent.
Written by Santhosh S
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