This Smallcap stock engaged in the business of Solar consulting and Engineering, Procurement, and Construction (EPC) surged 6 percent after the company received an order worth Rs. 1,061.97 crores from PSU for an EPC of 275MW Solar PV in Gujarat.
Price Action
With a market capitalization of Rs. 2,888.18 Crores, the shares of Gensol Engineering Limited touched a day’s high of Rs. 795.40 per equity share, up 5.8 percent. The stock reiterated from the day’s high and was trading at Rs. 758.40 which is 0.89 percent higher than its previous day’s close price of Rs. 751.30. The stock delivered a negative return of 5.77 percent and underperformed the Nifty Index in the past year.
What Happened
The company’s stock surged after they received an order from a Public Sector Undertaking worth Rs. 1,061.97 crore. The order involves the Engineering, Procurement, and Construction (EPC) of a 275MW Solar PV project at RE Solar Park, Khavda Rann of Kutch in Gujarat which includes three years of Operations and Maintenance.
Management Commentary
Commenting on the order, Shilpa Urhekar, the Chief Executive Officer, of Solar EPC (India) at Gensol Engineering stated, “We have started Calander Year 2025 on a high note. We have been awarded a prestigious Solar PV project contract from a Renowned Public Sector Undertaking at RE Solar Park, Khavda Rann of Kutch, Gujarat. As a proud homegrown company, we wholeheartedly align with the government’s vision to address India’s increasing demand for clean and sustainable energy. Our commitment is unwavering, and we continuously strive to make meaningful contributions across all facets of our operations.
About the Company
Gensol Engineering Limited was established in 2012. It is a prominent player in the renewable energy sector, specializing in Engineering, Procurement, and Construction (EPC) services for solar projects. The company offers comprehensive solutions from project conception to commissioning, with a portfolio exceeding 33,693+ MW globally. Gensol’s business model focuses on delivering end-to-end solar energy solutions, including project development, operation and maintenance, and consulting services. Additionally, it has diversified into electric mobility and green hydrogen solutions, positioning itself as an integrated provider of renewable energy technologies and services to meet evolving market demands.
Financials & Ratios
Its Revenue from operations improved by 13.44 percent year on year from Rs. 305 Crores in Q2FY24 to Rs. 346 Crores in Q2FY25, accompanied by a profit of Rs. 18 Crores to a profit of Rs. 23 Crores.
In terms of Return ratios, the return on equity (RoE) stood at 20.07 percent and a return on capital employed (RoCE) of 12.57 percent in FY24. They have a debt-to-equity ratio of 3.96 as of FY24.
Shareholding Pattern
As of September 2024, the promoters of Gensol Engineering held a share of 62.59 percent, Foreign Institutional Investors (FII) held around 2.30 percent, and the remaining 35.13 percent was held by Public Investors.
Written by Santhosh S
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