The shares of this small cap stock, engaged in the business of solar consulting and EPC services were in focus in Tuesday’s trading session after the company announced a Rs 350 crore deal to sell its US subsidiary, Scorpius Trackers Inc.
Stock Performance
With a market capitalization of Rs 2,158.73 crore, Gensol Engineering Ltd rose over 1 percent in Tuesday’s trading session and made a high of
Rs 579.80 per share compared to its previous closing price of Rs 572.95 per share. The stock reiterated from its day’s high and was trading at Rs 568.05 which is 0.8 percent lower than the previous closing price.
What Happened
Gensol Engineering signed a non-binding Term Sheet for Rs 350 crore to sell its US subsidiary, Scorpius Trackers Inc., to a major US renewable energy firm. The transaction includes global IP (Intellectual Property) rights for Scorpius’ solar tracking technology, excluding India.
The deal, aimed at unlocking capital for core growth areas, will close in two tranches by March 2026. The proceeds from the transaction will be strategically reinvested to expand Scorpius Trackers’ operations in India, drive growth in the solar EPC business, and support Gensol’s broader initiatives.
Management Commentary
Anmol Jaggi, Chairman & Managing Director said, “The monetization of Scorpius Trackers’ US business enables us to reinvest in high-growth opportunities in India while strengthening our financial position.”
While the deal transfers global IP rights (excluding India) to the US entity, Scorpius Trackers Pvt. Ltd., India, remains a wholly owned subsidiary of Gensol Engineering, continuing to focus on the Indian market. Scorpius India will retain its IP for Indian projects, ensuring continued innovation and market leadership in one of the world’s fastest-growing solar markets.
Company Overview
Gensol Engineering Limited offers EPC services along with solar advisory solutions, and consulting for solar projects across various regions. The company provides advisory services to project developers, institutions, solar EPC firms, and government policymakers. It operates three segments: EPC, EV Leasing, and EV Manufacturing.
Financial Performance
In the latest quarter, Gensol Engineering reported a 57 percent YoY increase in its total revenue from Rs 220 crore to Rs 345 crore. On a quarterly basis however, there was a slight decline from Rs 346 crore in Q2 FY25.
This was accompanied by a 42 percent YoY increase in net profits from Rs 12 crore to Rs 18 crore. On a quarterly basis however, the net profits decreased 22 percent from Rs 23 crore in Q2 FY25.
Written by Shwetha Sairam
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