The renewable energy sector in India has gained significant traction due to increasing government support, technological advancements, and a global shift towards sustainable practices.
The sector encompasses various sources such as solar, wind, and hydroelectric power, reflecting a commitment to reducing carbon emissions and transitioning away from fossil fuels. Investing in renewable energy stocks in India is becoming increasingly attractive for investors seeking to align financial goals with environmental sustainability
Listed below is one such renewable energy stock in which LIC has invested:
Orient Green Power Company Ltd
Price Movement:
With a market capitalization of Rs. 2,502 crores, on Friday, the shares of Orient Green Power Company closed at Rs. 21 compared to its previous close of Rs. 20.49.
Financials:
Looking at the company’s financial performance, the revenue increased by 76 percent from Rs. 36.02 crores during the March quarter to Rs. 63.44 crores in the June quarter. In addition, the net profits showcased a transition from a net loss of Rs. 25.25 crores to a net profit of Rs. 6 crores.
Comparing the same metrics on a YoY basis, the revenue decreased by 19 percent from Rs. 36.02 crores during Q1FY24 to Rs. 63.44 crores in Q1FY25. On the other hand, the net profits decreased by 35 percent from Rs. 9.29 crores to Rs. 6 crores during the same timeframe.
Important Financials Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 4.63 percent and a return on capital employed (RoCE) of 7.98 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 14.17 percent.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters own 29.42 percent of the company’s shares. Domestic Institutional Investors (DIIs) hold 2.73 percent, with LIC owning 1.57 percent of this. Foreign Institutional Investors (FIIs) possess 0.51 percent, and Retail Investors hold the remaining 67.33 percent.
Debt Management:
The company has also effectively reduced its total debt from Rs. 1,091 crores in FY23 to Rs. 754 crores in FY24, showcasing prudent financial management alongside growth initiatives.
Installed Capacity and Future Plans:
Orient Green Power Company (OGPL), a significant player in India’s renewable energy sector, is actively pursuing expansion plans to enhance its capacity and diversify its energy portfolio.
According to the annual report, as of March 31, 2024, OGPL’s installed capacity stands at 402.3 MW, primarily from wind energy projects located across several Indian states and a small facility in Croatia.
Furthermore, the company aims to reach an installed capacity of 1 GW within the next two to three years. This ambitious goal will be achieved through a combination of solar and hybrid models that integrate both wind and solar energy.
The company plans to develop a solar capacity of 39.6 MW, divided into two phases of 19.8 MW each. Funding for the first phase will come from a recently announced rights issue expected to raise approximately Rs. 250 crore, while the second phase will be financed through debt.
Orient Green Power aims to consolidate its position in the Indian renewable energy sector while exploring new opportunities both domestically and internationally. The company is focused on improving operational efficiency and profitability through various strategic initiatives.
Written By Vaibhav Patil
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