Gensol Engineering Ltd, a prominent player in Solar consulting & EPC, has emerged as a stock sensation, delivering an astounding 1700% return to investors in the last two years. In this article, we explore the factors behind this meteoric rise and consider whether Gensol Engineering deserves a spot in your investment portfolio.
Weekly Chart Analysis
The weekly chart paints a compelling picture of Gensol’s journey.
From trading at approximately 41 rupees per share in January 2022, the stock has skyrocketed to over 800 rupees apiece, yielding investors an exceptional 1700% return. Currently trading near all-time highs, the stock presents potential opportunities if it sustains these levels. Factors contributing to this surge include rising interest from Foreign Institutional Investors (FIIs), the company’s robust fundamentals, and its impressive future plans.
Q2 FY 2023-24 Results
In the September quarter of FY 2023-24, Gensol Engineering reported a standalone net profit of Rs 15.68 crore, more than doubling from Rs 7.31 crore in the year-ago period. Total income rose to Rs 201.61 crore from Rs 80.29 crore, showcasing a remarkable financial performance. The company’s foray into electric vehicle manufacturing in Pune adds a new dimension to its growth trajectory.
Market Buzz and Fundraising Plans
On December 28, Gensol Engineering’s shares hit an upper circuit amid reports of the board considering plans to raise funds. With a market capitalization of close to Rs 3,050 crore, the company aims to raise funds through the issuance of equity shares or other eligible securities, underscoring confidence in its future prospects.
Outlook
Gensol Engineering sets an ambitious target, aiming for a revenue of Rs 2030 crore by FY25. The projections for FY25 highlight expectations of significant contributions from the EPC business (Rs 985 crore), leasing business (Rs 376 crore), and the electric vehicle manufacturing business (Rs 669 crore).
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