The shares of one of the leading renewable energy company, specializing in the development and installation of solar power systems, jumped upto 6 percent upon receiving a Letter of Intent (LOI) under the PM KUSUM scheme for a Total capacity of 38.43MW.
Price action
With a market capitalization of Rs. 6,129.94 crores on Thursday, the shares of Insolation Energy Limited jumped upto 5.6 percent making a High of Rs. 294.95 per share compared to its previous closing price of Rs. 279.20 per share.
What Happened
Insolation Energy Limited has received a Letter of Intent (LOI) for designing, supplying, installing, testing, and maintaining grid-connected solar power plants for 25 years. The project includes connecting the plants to various substations and power grids and setting up a remote monitoring system under the PM KUSUM Scheme.
The plants, to be developed for Ajmer Vidyut Vitran Nigam Limited and Jaipur Vidyut Vitran Nigam Limited sites, The combined SPV Solar Power plant shall be 38.43 MW from these three letters of Intent (LOI) with a final levelized tariff of Rs. 2.880 per unit for 7 sites and Rs. 3.020 per unit for 21 sites.
About the company
Insolation Energy Ltd. is a leading company in the renewable energy sector, specializing in the development and installation of solar power systems. The company focuses on providing clean energy solutions and offers a wide range of services, including the design, engineering, procurement, and commissioning of solar power plants.
Key Insights
The company has strong financial metrics, with promoter shareholding exceeding 65 percent. Over the past three years, it has maintained a solid average Return on Equity (ROE) of 32.43 percent and an impressive average Return on Capital Employed (ROCE) of 22.23 percent.
Financials
The company’s revenue rose by 118 percent from Rs. 280.06 crore to Rs. 612.7 crore in H1FY24-25. Meanwhile, Net profit rose from Rs. 15.04 crore to Rs. 61.27 crore during the same period.
Written by Sridhar J
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