Multibagger stock: Oriana Power share price soars over 1000% in 8 months. What’s driving this green energy stock?
- Multibagger stock: Oriana Power Limited has witnessed a remarkable growth in its stock price, delivering more than 1,000% return in a short span. The company's focus on renewable energy is evident through its recent project wins, reinforcing its position in the industry.
Multibagger stock: In just eight months, Oriana Power Limited delivered a multibagger return of more than 1,000%. Since the counter's debut in August 2023, investors have seen a 17.3 lakh increase in value. Oriana Power share price today has been locked in 5% upper circuit. Since listing, the stock has had many sessions locked in the upper circuit. Oriana Power share price opened at 1,442.95 apiece on NSE, the stock touched an intraday high of ₹1,444.45 and intraday low of ₹1,350. However, Oriana Power stock faces skepticism from analyst due to low liquidity and fundamentals.
Since its launch, this green energy stock has garnered several order wins, and in 2024, it continued a similar trend. Recently, the company declared the commissioning of a 29 MWp captive open access solar power plant project for a well-known Karnataka-based steel manufacturer.
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Oriana Power has received several orders since the year's beginning. A prestigious contract for the development of a 5 MWp solar power plant under the CPP segment of the company was awarded to Truere 100 Energy, the company's wholly owned subsidiary, in April itself, according to an exchange filing. The plant will generate monthly recurring revenue for a 25-year period.
Additionally, the company secured a new contract for a solar power plant of 76.62 MW (AC). The Contract, which is for more than 25 years, illustrates its commitment to enduring relationships and the supply of renewable energy services. The approximate cost for development and construction is ₹325 crore.
The company stated in an exchange filing that the project has been granted 17.27 crores in Central Financial Assistance (subsidy), which will be disbursed in accordance with the terms and conditions of the order. This announcement will further strengthen the project's viability and allow it to provide cost-effective solutions.
However, Dr. Ravi Singh, SVP - Retail Research at Religare Broking Ltd, highlighted that the fundamentals of the company do not justify the current price at which the stock is trading, as both revenue and cash flow of the company are very low. As an investor, one should avoid the stock as it has very low liquidity.
In FY23 compared to FY22, the company's net revenue rose by 31.9% to ₹132.94 crore, resulting in a 79.5% increase in net profit to ₹12.94 crore.
Oriana Power is an established provider of renewable energy solutions to businesses and industries in Africa and India. Since its founding in 2013, the firm has completed more than 180 MW of solar installations. In all, the company has completed over 80 projects and worked with over 40 clients.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
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