Small-Cap stock engaged in offering engineering, procurement, and construction (EPC) services for the development of solar power plants, energy storage solutions, and many more hit a 5 percent upper circuit upon receiving an order worth Rs. 1,340 Crores.
With a market capitalization of Rs. 4,043.50 Crores, the shares of Gensol Engineering Limited hit a 5 percent upper circuit at Rs. 1,067.65, from its previous day’s close price of Rs. 1,016.85.
Gensol Engineering Limited has emerged as a successful bidder for a 250 MW/500 MWh standalone Battery Energy Storage Systems (BESS) project worth Rs. 1,340 Crores, from Gujarat Urja Vikas Nigam Limited (GUVNL).
The said project will supply electricity on an On-Demand basis to Gujarat State’s DISCOMs during peak and off-peak hours, thereby extending renewable energy availability beyond solar hours, fulfilling Energy Storage Purchase Obligations, and enhancing grid resilience. It will also deliver 250 MW/500 MWh energy for two charge/discharge cycles per day.
Battery energy storage is increasingly deployed worldwide for renewable energy integration and managing grid uncertainties. As part of this project, Gensol will provide state-of-the-art energy storage solutions combined with advanced energy management systems, ensuring compliance with rigorous availability and efficiency standards.
In Addition, there is a greenshoe option of awarding a second tranche of 250 MW/500 MWh at the discretion of GUVNL at the same terms and conditions. In case of exercise of the greenshoe option, the project could reach 500 MW / 1000 MWh, potentially generating a total revenue of approximately Rs. 2680 Crore over the 12-year Battery Energy Storage Purchase Agreement (BESPA) tenure.
Anmol Singh Jaggi, Managing Director, Gensol Engineering Limited stated that, “The Battery Energy Storage Systems (BESS) market in India is poised for exponential growth, and Gensol is at the forefront, ready to lead this transformation. Securing this project enables us to make a significant impact on the Indian energy market while solidifying our position as a leading industry player in the renewable energy landscape, propelling the future of BESS in India.”
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.
Its revenue from operations grew by 151.16 percent from Rs. 144.49 Crores in Q4FY23 to Rs. 362.9 Crores in Q4FY24, accompanied by profits of Rs. 8.43 Crores to Rs. 34.81 Crores.
In terms of return ratios, it has reported a return on equity (ROE) of 20 percent, a return on capital employed (ROCE) of 14.6 percent, and a debt-to-equity ratio of 4.63.
Written by: Bharath K.S
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
