Shares of Gensol Engineering continued at their northward journey, hitting a new high of Rs 1,706.65 on the BSE on Friday, after the company said it has clinched deals worth over Rs 153 crore for building solar power projects in the states of J&K, Gujarat, Punjab, Rajasthan, Tamil Nadu, and Telangana.
The stock was locked in the 5 per cent upper circuit band for a fifth straight day. Till 01:50 PM, around 30,000 equity shares had changed hands and there were pending buy orders for 17,024 shares on the BSE, the exchange data shows.
In the past one month, the stock price nearly doubled, or surged 96 per cent, as compared to 7 per cent rise in the S&P BSE Sensex. Moreover, thus far in the calendar year 2022, the market price of Gensol Engineering has zoomed 1,475 per cent from a level of Rs 108.35 touched on December 31, 2021. In comparison, the benchmark index was up 1.4 per cent during the same period.
In August, Gensol Engineering received purchase orders from its reputed clients for the development of solar power projects aggregating to a capacity of around 55.8 MWp in the states of J&K, Gujarat, Punjab, Rajasthan, Tamil Nadu, and Telangana, the company said in a press release.
Out of these seven deals closed by Gensol, five are based on full turn-key engineering-procurement-construction (EPC) model, while two are Balance of System (BoS) projects. Similarly, while four projects are to be erected over land, the other three will be raised over the rooftops of the factories of the clients, the company said.
Gensol Engineering is a part of Gensol group of companies, which offer EPC and solar advisory services. The company is engaged in providing technical due diligence, detailed engineering, quality control, construction supervision, and other consulting services for solar projects across many countries, including India.
Being a one-stop solution for a value chain of the solar industry, it provides advisory services to leading project developers, leading institutions, solar EPC companies, and government policymaker.
By acquiring majority stake in a US-based electric vehicle (EV) manufacturing startup, Gensol Engineering has recently ventured into EV manufacturing a market that is poised for explosive growth, keeping in mind that the case for immediate electrification of consumer transport is undeniable. This acquisition can prove to be a very momentous change for Gensol, as it will help pump up its topline to the tune of Rs 500-600 crore during the financial year 2023-24 (FY24).
Meanwhile, for April-June quarter (Q1FY23), Gensol Engineering crossed the important standalone revenue milestone of Rs 100 crore. The company believes that the solid results illustrate the ongoing positive momentum in the renewable energy sector and remains optimistic about the remaining period of this fiscal year. The company had posted revenue of Rs 155.85 crore during the financial year 2021-22.
Gensol Engineering trades in the SME segment under the “M” group only on the BSE. The trading, clearing and settlement in the SME segment is done on a T+2 basis. Trades done in BSE SME scrips are required to be compulsorily settled in demat mode.