The shares of the solar photovoltaic module manufacturers hit 5 percent upper circuit after the company awarded a letter of award for solar photovoltaic power generating stations.
With a market capitalization of Rs 255.48 crore, the shares of Surana Solar Limited were trading at Rs 51.92 per share, increasing around 4.07 percent as compared to the previous closing price of Rs 49.89 apiece.
Reason for rise:-
The shares of the company have seen bullish movement after Surana Solar Limited received a letter of award from a Solar Power developer (SPD) for solar photovoltaic power generating stations of an aggregate capacity of 54 MW (AC) under Mukhyamanatri Saur Krushi Vahini Yojna 2.0 from Maharashtra State Electricity Distribution Co. Ltd (A Govt. of Maharashtra Undertaking) for estimated project cost of Rs 190 Crores and the company has acquired a Special Purpose Vehicle (SPV) i.e. Surana Technologies Private Limited, for setting up the project.
Moreover, Surana Technologies Private Limited, a wholly owned subsidiary of Surana Solar Limited, has entered into a power purchase agreement for 25 years with Maharashtra State Electricity Distribution Co. Ltd for the implementation of the same.
Financial performance:-
Examine the company’s financial condition, revenue zoomed by 415 percent from Rs 2.77 crore in Q2FY24 to Rs 14.28 crore in Q2FY25, and during the same time frame, net profit magnified by 122 percent from a loss of Rs 1.45 crore to Rs 0.33 crore.
Strategic Developments:-
Surana Solar intends to build a 25-megawatt module manufacturing facility and two 10-megawatt solar power projects. Additionally, it is considering a joint venture in Sri Lanka to expand its product capabilities in LED and solar lighting. These activities are anticipated to increase manufacturing capacity and market reach.
The firm is heavily engaged in government and non-government contracts, notably in the rooftop solar area, which is consistent with India’s push for renewable energy solutions.
Ratio analysis:-
The company’s critical ratios show that the return on equity decreased from 3.97 percent in FY22-23 to (2.24) percent in FY23-24, while the return on capital employed magnified from 6.04 percent to (1.46) percent. The net profit margin (NPM) for fiscal year 23-24 is (7.10) percent.
Shareholding pattern:-
In the company’s recent shareholding pattern, the Promoters of the company own 42.89 percent while Retail shareholders own a 56.77 percent stake in the company and Foreign Institutional Investors own a 0.30 percent stake.
Company Profile:-
Surana Solar Limited is involved in the areas of solar and wind power, telecommunications, metal processing, and infrastructure. The Company is engaged in the business of manufacturing solar photovoltaic (SPV) modules, generation of wind and solar power energy, and trading of other solar-related products.
Written by:- Abhishek Singh
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