Gensol Engineering Secures Major Solar Project Order
In a significant development for the small-cap stock market, Gensol Engineering has experienced a notable increase in its share price, climbing over 3% on Monday, October 14. The rise follows the company’s announcement of securing an impressive order valued at ₹186 crore for a major rooftop solar project located in Dubai. This development highlights Gensol’s continued expansion in the renewable energy sector, particularly in solar services.
Details of the Project
Gensol Engineering’s order was awarded by a prestigious company from the UAE. The scope of the project involves the design, construction, and long-term operation and maintenance of solar photovoltaic (PV) systems tailored for the engineering facilities of an aviation sector company in Dubai. This contract is particularly noteworthy as it marks a strategic foothold for Gensol in an international market known for its rapid advancements in renewable energy infrastructure.
Contract Specifications
The project boasts a substantial total installed capacity of 23,178 kWp (equivalent to 23 MWp). The contract, priced at ₹186 crore (or AED 81.6 million) plus applicable taxes, is slated for execution over an estimated period of 20 months. Such large-scale projects are essential for Gensol Engineering as they contribute significantly to the company’s revenue and help solidify its market presence.
Impact on Share Performance
Following the announcement of this significant order, the share price of Gensol Engineering surged to a day’s high of ₹854.90, representing a 3.41% increase from its previous close of ₹826.65. The stock opened at ₹839.95 on that trading day, indicating a strong investor response to the news.
Current Market Position
Despite the recent positive movement, it’s worth noting that Gensol Engineering’s share price is still 38% lower than its 52-week high of ₹1,377.10, which was recorded on February 20 earlier this year. Conversely, the stock has shown a substantial recovery of 19% from its 52-week low of ₹72, achieved on December 11. Over the past year, the small-cap stock has experienced a modest increase of 7%.
Strong Order Book and Revenue Growth
In conjunction with this project, Gensol Engineering recently disclosed that its solar EPC (Engineering, Procurement, and Construction) order book has reached an impressive ₹4,097 crore as of September 30, representing approximately 1.5 GW of orders. The order book encompasses projects initiated by both public and private clients, with execution timelines ranging from 12 to 18 months, showcasing the company’s robust growth potential in the renewable energy sector.
Overall Market Strategy
As of September 30, 2024, Gensol Engineering’s total order book has expanded to ₹9,055 crore, including projects in battery energy storage systems and solar power generation. This diverse portfolio positions the company well to capitalize on emerging opportunities within the green energy market.
Financial Performance Highlights
With a solid order book backing its operations, Gensol Engineering reported significant financial gains for the second quarter of the fiscal year (Q2FY25). According to a recent business update, the company saw its revenue grow to ₹314 crore in Q2FY25, a sharp increase from ₹199 crore during the same quarter the previous year, marking a remarkable rise of 58%.
Forward-Looking Statements
“This remarkable financial performance reflects our strong growth trajectory. We remain committed to our guidance of achieving a ₹2,000 crore topline for FY25 at the consolidated level, with the latter half of the year projected to contribute the majority of our revenue, similar to last year,” commented Anmol Singh Jaggi, Chairman and Managing Director of Gensol Engineering.
Conclusion
As Gensol Engineering continues to secure substantial projects and expand its order book, it positions itself as a key player in the renewable energy market. Investors and stakeholders should closely monitor the company’s growth trajectory and its ability to leverage its recent successes in the competitive landscape of solar power and sustainable energy solutions.
