The shares of this smallcap company jumped upto 3 percent in Monday’s trading session after announcing a significant milestone by becoming India’s first PV module manufacturer to be certified with the prestigious MCS certificate.
Price Movement:
With a market capitalization of Rs. 1,402 crores, the shares of Solex Energy Ltd started Monday’s trading session on a higher note at Rs. 1,615 compared to its previous close of Rs. 1,605. During the trading session, the shares hit a high of Rs. 1,647, gaining around 3 percent and are currently trading at Rs. 1,610 apiece.
Is Solex Energy a buy or sell? What is its Fair Value? What are the company's health parameters? What are the positive and negative factors driving the company -- ProTips? Know all the answers on the company's overview page here.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had achieved a significant milestone by becoming India’s first PV module manufacturer to be certified with the prestigious MCS 005 certificate under the BSI Kitemark, supported by the United Kingdom Accreditation Service (UKAS).
MCS certification is a quality assurance scheme that certifies microgeneration products and installers in the UK. It ensures that products meet specific standards of quality and performance, which is crucial for consumer confidence and market acceptance.
The certification covers various renewable energy technologies, including solar PV, wind turbines, and heat pumps.
The BSI Kitemark is a widely recognized symbol of quality and safety in the UK. It indicates that a product or service has undergone rigorous testing and meets high standards set by the British Standards Institution.
The MCS 005 certification is recognized globally and plays a critical role in facilitating market entry into Europe and other key regions, further strengthening Solex Energy’s position as a leader in the solar energy sector.
Management Commentary:
Speaking at the event, Chetan Shah, Chairman & Managing Director of Solex Energy Limited, stated, “Receiving the MCS 005 certification is a crucial step in Solex Energy’s expansion into the European, UK, and UAE markets.
This certification reinforces our dedication to quality and continuous innovation, ensuring that we meet the rigorous standards of international markets while delivering top-tier solar solutions to our customers.”
Financials:
Looking at the company’s financial statements, the revenue magnified by 194 percent from Rs. 93 crores during H1FY24 to Rs. 273 crores in H2FY24. In addition, the net profits surged by 800 percent from Rs. 1 crore to Rs. 8 crores during the same period.
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, Solex Energy has revealed plans to increase its module production capacity by 800 MW through a Memorandum of Understanding (MoU) with GMEE Solar and Wuxi Tidewinner Industrial International Co., Ltd. This expansion will raise 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:
As per the most recent shareholding pattern, the Promoters hold 66.15 percent of the stake, Foreign Institutional Investors (FIIs) have 0.03 percent, and Domestic Institutional Investors (DIIs) possess 1.12 percent. The remaining 32.70 percent is held 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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