Home / Markets / Stock Markets63 to 1,426: Multibagger stock turns 1 lakh to 20 lakh in 1 year

With a market worth of Rs. 1,560.10 Cr., Gensol Engineering Ltd. is a small-cap company that engages in the commercial services industry. The business provides operation services for solar projects both domestically and internationally. With offices in Ahmedabad and Mumbai, the firm is present in 18 Indian states. It also has current projects in Kenya, Chad, Gabon, Egypt, Sierra Leone, Yemen, Oman, Indonesia, and the Philippines. Gensol Engineering is one of the stocks that has given multibagger returns in the last 3 years.

Share price history of Gensol Engineering

Today's BSE closing price for Gensol Engineering Ltd. shares was Rs. 1,390.65, down 2.51% from the previous close of Rs. 1,426.45. The stock had a total volume of 76,614 shares traded today. The stock price has risen significantly in the last three years, rising from 63.41 on October 18, 2019, to the current market price, representing a multibagger return of 2,093.11% and a CAGR of 180.47%. Consequently, if you had invested 1 lakh in the stock three years ago, you would have received a return on investment of 21.93 lakh. 

The stock price has increased tremendously over the past year from 67.88 on September 27, 2021, to the present market price, resulting in a multibagger return of 1,948.69% and an approximate CAGR of 1974.63%. Therefore, if you had invested Rs. 1 lakh in the company a year ago, you would have received a return on your investment of Rs. 20.48 lakh today. The stock has climbed from 119.15 on January 3, 2022, to the current market price on a year-to-date basis, resulting in a multibagger return of 1,067.14% so far in 2022. Consequently, if you had invested 1 lakh in the company at the beginning of the year, you would have received a return of 11.67 lakh today. 

An investment of 1 lakh made in the stock six months ago would now have earned you a return of 4.69 lakh due to the stock's multibagger return of 369.18% in that period. But during the past month, the stock has plummeted 22.39%, and over the past five trading days, it has dropped 15.00%. On the BSE, the stock had touched a 52-week-high of 1,990.00 on (02/09/2022) and a 52-week-low of 54.45 on (06/12/2021), indicating that at the current market price the stock is trading 30.11% below the high and 2453.99% above the low. 

At today's closing price the stock was seen trading below the 5 days, 10 days, and 20 days SMA but above the 50 days. 100 days and 200 days Simple Moving Average (SMA). Since the stock is trading above all long-term SMAs, a short-term bullish phase may be observed. The relative strength index (RSI) indicator for the stock is at 45, which is neither in the overbought nor oversold zones, but rather in the midzone, indicating an entry point. 

Key takeaways of Gensol Engineering

Gensol Engineering Ltd has recently said that it has received orders for the development of solar power projects totalling 531 crore from clients including Singareni Colleries Company Limited (SCCL) and the Government of India, Braithwaite & Co. Limited (BCL). These projects would be built in the states/UTs of Andhra Pradesh, Gujarat, Haryana, Jharkhand, Karnataka, Ladakh, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Tamil Nadu, Telangana, and Uttarakhand, with a combined capacity of around 121 MWp. 

The company has said in a regulatory filing that “Out of the total order book, only two projects are based on the model of Balance of System (BoS), while the balance projects are to be developed through full turn-key EPC model, a fact that testifies to Gensol’s robust end-to-end project execution capabilities. Piquantly, more than 37% of these orders envisage the development of projects in the southern states of AP, Karnataka, Telangana and Tamil Nadu, closely followed by Gujarat at 34%. Similarly, 67% of the total order book needs to be developed over land, while the balance will be raised over the rooftops of the factories of the clients. While the largest size of the project is over 25 MWp, the lowest size is around 80 kWp. The total value of these projects is pegged at Rs. 5,31,24,16,761 (Indian Rupees Five Hundred and Thirty-One Crores Twenty-Four Lakhs Sixteen Thousand Seven Hundred and Sixty-One Only) exclusive of taxes."

The firm reported a promoter shareholding of 71.34% and a public holding of 28.66% for the quarter that ended June 2022. But owing to its high P/E ratio of 137.15 and P/B ratio of 32.74, it is an overvalued stock in comparison to its rivals, including Computer Age Management Services Ltd, Indian Energy Exchange Ltd, CDSL, Century Plyboard, PB Fintech, and Gujarat Gas.

 

ABOUT THE AUTHOR

Vipul Das

Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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