Multibagger Stock: KPI Green Energy zoomed over 200% in less than six months, advanced 510% in a year
KPI Green Energy's stock has surged by 510% in the last year, driven by significant order wins and positive investor sentiment. The company aims to deploy 1000 MW of solar power by 2025, tapping into India's growing demand for renewable energy solutions.
Shares of KPI Green Energy, one of the leading players in the renewable energy sector, have been on an upward roll over the last six months, producing a stellar performance and significantly enhancing shareholder wealth in a relatively brief timeframe.
The company, operating in the solar power generation sector, functions as both an independent power producer (IPP) under the 'Solarism' brand and a service provider to captive power producer (CPP) clients. Since November, its shares have witnessed a consistent upward trajectory, delivering an impressive return of 209% to date.
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Considering the current price of ₹1,690 per share, the stock has delivered an impressive 510% return over the past year. This remarkable performance can be attributed to the company's substantial order acquisitions, which have bolstered investor confidence and propelled the stock price to unprecedented heights. In February, the stock touched a new all-time high of ₹1,890 apiece.
India is witnessing a strong, growing demand for renewable energy solutions, especially in the context of global efforts to combat climate change and shift towards sustainable practices. This growing demand for clean energy sources offers a promising opportunity for renewable energy firms like KPI Green Energy to expand their market presence and enhance revenue streams.
With power demand in India on the rise, solar energy has consistently emerged as the primary source of new power capacity additions over the past seven years. India's ambitious target of achieving 280 GW of solar power by 2030 further strengthens the prospects of the renewable energy sector.
In line with the government's objectives, KPI Green Energy aims to deploy a substantial 1000 MW of solar power for its clients by 2025.
Additionally, the launch of the PM Surya Ghar: Muft Bijli Yojana by Prime Minister Narendra Modi in February, offering free electricity to beneficiaries, is expected to drive further demand for solar power generation across the nation.
Venturing into hybrid segment
The company has stepped into the hybrid segment of renewable energy, combining solar and wind power for enhanced grid stability. This innovative approach ensures reliability, efficiency, and sustainability in energy generation. Moreover, it optimises transmission charges and maximises grid capacity utilisation, offering a commercially viable solution.
With a focus on cost efficiency and robust energy production, the company plans to further develop this hybrid model, leveraging its significant benefits.
Growth in financials
The company posted a consolidated net profit for the nine months of FY 2023–24 at ₹118.61 crore, a 52% surge compared to ₹77.85 crore in the same period last year.
With a robust order book and efficient execution, the company has exceeded the full-year revenue of FY 22–23, reaching ₹647.03 crore. Total revenue for the first nine months of the current fiscal rose by 59.5% to ₹737.85 crore, up from ₹462.62 crore in the corresponding period of FY 22–23.
Consolidated CPP sales for the first nine months of FY 23–24 surged by 53% to ₹609.20 crore from ₹397.09 crore last year. Meanwhile, independent power producer (IPP) revenue grew by 95% to ₹123.76 crore from ₹63.42 crore during the same period.
Further, it achieved a nine-month EPS of ₹32.61 for FY 2023–24, compared to ₹21.54 for the corresponding period in FY 2022–23.
Disclaimer: We advise investors to check with certified experts before taking any investment decisions.
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