The shares of this smallcap company locked a 5 percent upper circuit after receiving an order for Smart Solar Street Light System. In one year, the stock has delivered a multi-bagger return of 168 percent to its shareholders.
Price Movemnet:
With a market capitalization of Rs. 1,264 crores, the shares of Solex Energy Ltd started Thursday’s trading session on a higher note at Rs. 1,548.95 compared to its previous close of Rs. 1,504.75. Within a few minutes of the opening bell, the shares clocked a 5 percent upper circuit at Rs. 1,576 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had received the work order from the District Panchayat Raj Officer, Aurangabad for a Comprehensive Maintenance Contract (CMS for 5 years) including a Remote Monitoring System (RMS) of Smart Solar Street Light System for worth over Rs. 3.06 crores and to be completed within 3 months as per the terms of the order.
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Financials:
Looking at the company’s financial statements, the revenue zoomed by 194 percent from Rs. 93 crores during H1FY24 to Rs. 273 crores in H2FY24. In addition, the net profits magnified by 800 percent from Rs. 1 crore to Rs. 8 crores during the same period.
Recent Developments:
Earlier, the company received a work order under “Mukhyamantri Gramin Solar Street light Yojna” in Supaul District, Bihar for the supply of Smart Solar street light systems worth over Rs. 16 crores.
Furthermore, the company also received an order from Vishwaprem Dyg. Mills Pvt. Ltd., Surat for the installation of a 2 MW Solar Ground Mount Power Plant worth over Rs. 6.25 crores.
Manufacturing Facilities:
The company has a 700 MW PV module production capacity factory and a 1.2 GW solar PV module manufacturing facility with an in-house Reliability Test Lab in Gujarat.
Additionally, in May 2024, Solex Energy announced plans to expand its module production capacity by an additional 800 MW by signing an MoU with GMEE Solar and Wuxi Tidewinner Industrial International Co., Ltd. This will bring their total production capacity to 1.5 GW by the end of September 2024.
Moreover, the company aims to further expand its production capacity to 4.5 GW by FY 2025-26 to meet the growing global demand for high-quality Made in India solar modules.
Important Financial Ratio:
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 7.20 percent during FY 22-23 to 18.88 per cent in FY 23-24, and, the return on capital employed (RoCE) zoomed from 10.96 percent to 22.74 percent during the same timeframe.
Shareholding Pattern:
According to the latest shareholding pattern, Promoters control 70.66 percent of the stake, while DIIs hold 1.10 percent. The remaining 28.24 percent is owned by Retail Investors.
Company Profile:
Headquartered in Surat, Solex Energy Ltd was incorporated in 2014. The company is engaged in the manufacturing of solar panels and other renewable energy devices and the installation of systems on an EPC basis.
Written By Vaibhav Patil
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