This solar microcap stock which operates in the business of manufacturing solar power, Batteries, EV Products, UPS, and Inverters in focus after the company received an order from M.P. Urja Vikas Nagar worth Rs. 18 crore.
Price Action
With a market capitalization of Rs. 137.50 Crores, the shares of Sungarner Energies Limited were up by 1.02 percent in the day’s trade touching a day’s high of Rs. 593 per share. The stock reiterated from the day’s high and hit a lower circuit to Rs. 557.65 per share which is 5 percent lower than the previous closing price of Rs. 587 apiece. The stock has delivered a multi-bagger return of 201 percent and has outperformed the Nifty Index in the past year.
What Happened
The company has received a Letter of Intent (LOI) new contract for the Engineering, Procurement, and Construction (EPC) worth Rs. 18 crore from M.P.Urja Vikas Nagar Limited (State Government Undertaking). The order is related to the 4MW Solar power plant.
About the Company
SunGarner Energies Limited was founded in 2015. It is an Indian manufacturer specializing in renewable energy solutions. The company produces a wide range of products, including solar inverters, lead-acid and lithium-ion batteries, and online UPS systems. SunGarner also offers turnkey solar project services, focusing on engineering, procurement, and construction for solar power plants. With a commitment to innovation and sustainability, it aims to provide efficient energy solutions for residential, commercial, and industrial sectors, contributing to India’s clean energy transition.
Financials & Ratios
On a standalone basis, the Revenue from operations grew by 60.56 percent year on year from Rs. 12.04 Crores in H1FY24 to Rs. 7.49 Crores in H1FY25, accompanied by a profit of Rs. 0.82 Crores to a profit of Rs. 0.24 Crores.
In terms of Return ratios, the company has a return on capital employed (ROCE) of 12.68 percent and the return on equity (RoE) stood at 11.17 percent. The net profit margin stood at 6.05 percent and the debt-to-equity ratio stood at 0.59 as of FY24.
Shareholding Pattern
As of September 2024, the shareholding pattern with the promoter’s stake holding a share of 61.49 percent in Sungarner Energies and public holdings standing at 14.20 percent.
Written by Santhosh S
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