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This Microcap stock which deals in the business of manufacturing cast iron and spheroidal graphite Castings was up by 5.5 percent after the company signed a supply agreement with Envision Energy for manufacturing wind turbines.
Price Action (WA:ACT)
With a market capitalization of Rs. 730.52 Crores, the shares of Synergy Green Industries Ltd (NS:SYNR) were up by 5.5 percent in the day’s trade touching a day’s high of Rs. 478 per share. The stock reiterated from the day’s high and was trading at Rs. 470 per share which is 3.81 percent higher than the previous closing price of Rs. 452.75 apiece.
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What Happened
The company entered into a Supply Agreement signing with Envision Energy India for manufacturing of Wind Turbine Castings. As of now, EN-156 3.3 MW turbines are in production for the Indian market with an order book in the pipeline for Indian installations over 1.5 GW and 7.7 GW.
On the Envision Energy agreement, the company estimates based on volume projections it is to exceed 10,000 MT per annum of capacity utilization during the next 3 years. The Product development activity is expected to take six months approximately and is projected to be in production in H2FY26.
About the Company
Synergy Green Industries Limited was founded in 2010 and is based in Kolhapur. They specialize in manufacturing metal castings for wind turbines and other engineering applications. They operate through three segments which are Wind Turbine, Wind Gear Box, and General Engineering. The company focuses on producing high-quality castings which include graded gray iron and spheroidal graphite iron while utilizing advanced technologies like MAGMA simulation software.
Their business model focuses on strategic partnerships with leading global clients such as Vestas and Siemens (NS:SIEM) while ensuring tailored solutions that meet industry standards while enhancing operational efficiency and customer satisfaction in the renewable energy sector. The company has clients in similar platforms to Vestas and Siemens Gamesa
Financials & Ratios
Its Revenue from operations grew by 23.57 percent year on year from Rs. 71.95 Crores in Q2FY24 to Rs. 88.91 Crores in Q2FY25, accompanied by profits of Rs. 3.21 Crores to Rs. 4.16 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 27.73 percent and a return on capital employed (ROCE) of 22.84 percent. The debt-to-equity ratio was 1.38 as of FY24.
Shareholding Pattern
As of October 2024, the shareholding pattern with the promoter’s stake holding a share of 69.75 percent in Synergy Green Industries, Foreign Institutional Investors (FII) holding around 0.23 percent, and public holdings standing at 40.56 percent.
Written by Santhosh S
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