Last Updated on: 6th November 2024, 02:30 am
Gensol engineering Ltd has declared on 3.11.2024 to the exchange that it has received an order of Rs.780 cr for solar pv project from leading utility company of Maharashtra.
The shares of Gensol Engineering Ltd closed at Rs.839 per share with an increase of 3.01%.At this price the market cap of the company is Rs.3178 cr.
About the company.
Gensol Engineering company Ltd was established in 2012 and is a leading player in the renewal energy sector.It is into EPC projects ,solar consulting and EV leasing .In Q1 fy25 solar business accounted for 83%
It had expanded its footprint in UAE by incorporating a subsidiary.This section has grown 5.3x and has strong order book.
EV Leasing Business.
The company offers EV leasing for 2W, EV buses,LCVs through its strong network across 46 cities.To date it has leased more tgan 6000 EVs.It has resulted in revenue growth of 100% YOY in Q1 Fy 25.
EV manufacturing:
The company has designed EV car which is 2 seater 2 door car for urban India.The vehicle has received ARAI aproval in february2024 and as of Q1FY 25 it is going road testing. The company has a manufacturing facility in Chakan,Pune which was established with an investment of Rs.228 cr.with an annual capacity of 30000 vehicles.
Green Hydrogen Business
Gensol Engineering Ltd along with Matrix Gas & Renewables Limited has secured a project to setup India’s first Green Hydrogen Valley in Pune ,Maharashtra.With this the company will supply Green Hydrogen to the speciality chemical seector in Pune,Maharashtra,on Round The Clock basis.
International Business.
The company has fully acquired ScorpiusTracker pvt ltd for Rs.135cr.With this acquisition the company to offer patented tracker design and sofware solution and innovative controller,with this it aims to enter international market The company Dcorpius tracker has already entered theU.S. market by launching Delware based subsidiaey Scorpius Tracker Inc.which aims to supply 2000MWannually by 2028.
Company Financials.
The company has a market cap of Rs.3157 cr with a PE of 38.8.which is slightly higher than average peers PE of 35.
The sales has been increasing quarter on quarter if we track it from Dec 2021 quarter it was just Rs34 crore and in recent quarter ended september 2023 it rose 10 fold to Rs.346 crore
Net profit in the Dec2021 quarter was Rs.2 crore and in quarter ended September2024 it was Rs.23 crore.
Share price Performance
The company has turned Rs.20000 investment to Rs 8lacs in almost three years.The share of the company was Rs.20 on December 3 2021 and the current price on 4.11.2024 it is Rs835. It made a 52week high of Rs.1377 and low of Rs.709.
Capital and Fund Raise.
The company has equity capital of Rs.38 cr and a reserve of Rs.551 crore as per Balance sheet as on 30th September 2024.In Feb 2024,the company raised 900 cr equity capital via convertible warrants which will be utilised for working capital requirement,inorganic growth investment in its subsidiaries and part of debt repayment.
Shareholding( as on sempember 30th2024)
Promoters:62.59%
insitution:2.30%,
Public 35.13%
Promoter and Managing Director of the company Mr.Anmol Singh Jaggi has acquired 26500 shares from open market,his stake was earler 21.13% which has now slightly increased.
Analysis.
Company share has already given a multibagger return.The company is into different business segment most of which are at early stage .Going forward one should keep a watch on how these businesses adds to revenue and profitability growth.Moreover promoter and MD has acquired shares of the company from open market which is definately a possitive signal.
Concern- The high debt of more than Rs1900 cr is a burden on the profit of the company.The interest is eating up the profit .The company has also been trying to reduce that as it has said that it will pay part of it out of the fund which has been raised recently. Company has receivables outstanding or Rs.309 cr which is equivalent to almost all of sales of september 2024 quarter.So there is a stress in cash flow which is a matter of concern.
But the sector in which the company is working are all future bright sectors,If successfully driven this could take the company to a newer heights.One must keep a watch how the business progresses.
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