Solar stock engaged in offering engineering, procurement, and construction (EPC) services for the development of solar power plants, energy storage solutions, and many more jumped upto 4 percent upon receiving solar project worth Rs. 186 Crores from UAEs clean energy development company.
Price Action
With a market capitalization of Rs. 3,186 Crores, the shares of Gensol Engineering Limited were trading at Rs. 841.30 per equity share, up 1.77 percent from its previous day’s close price of Rs. 826.65.
What Happened
Gensol Engineering Limited one of the leading players in the renewable energy sector specializing in solar power EPC services has received a new work order from UAE’s leading sustainable development and clean energy development Company.
The said work order is for the design, construction, procurement of materials, and long-term operation, and maintenance of 23 MWp rooftop solar photovoltaic (PV) systems for the engineering facilities of a leading aviation company in Dubai for a consideration of Rs. 186 Crores and it is to be executed over 20 months.
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Management Comments
Kapil K Nirmal, CEO, Solar EPC (MENA), Gensol Engineering Ltd., said, “We are thrilled to partner with UAE’s leading sustainable development and clean energy development company on this landmark project, which reflects our ongoing commitment to delivering innovative and efficient solar EPC solutions in this region. This project further strengthens our presence in the Middle East and aligns with Dubai’s vision of becoming a global leader in clean energy by 2050.”
About the Company
Gensol Engineering Limited is part of the Gensol Group of companies, it is a leading player in the renewable energy sector in offering engineering, procurement, and construction (EPC) services for the development of solar power plants. It operates across four segments namely Solar EPC, Solar Panel Tracking Tech, EV Leasing, and EV Manufacturing.
Gensol Engineering Limited is Diversifying into EV manufacturing and EV leasing marking a strategic shift for Gensol, allowing for multiple revenue streams, reduced reliance on a single sector ensuring stability.
Gensol Engineering Limited has a strong order book of Rs. 1,783 Crores, with 33,693 MW+ Historical foundation of technical advisory services, 770 MW+ Ground mounted, rooftop, and floating solar EPC projects and it has 6,000+ EVs on lease.
It has a strong customer base with well-known players like Gail, Astral Pipes, GMR, L&T Realty, SRF, Hitachi, Hindalco, RBI, Trident Energy and many others.
Financials and Ratios
Its Revenue from operations grew by 104 percent from Rs. 145 Crores in Q1FY24 to Rs. 295 Crores in Q1FY25, accompanied by profits of Rs. 10 Crores to Rs. 15 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 20 percent, and a return on capital employed (ROCE) of 14.3 percent. It has reported a high debt-to-equity ratio of 4.63.
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Written by: Bharath K.S
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