Smallcap stock in focus after securing contract worth ₹ 164 Cr for bio-hydrogen project

Published 03-09-2024, 12:45 pm
Smallcap stock in focus after securing contract worth ₹ 164 Cr for bio-hydrogen project

Shares of this small-cap company, which specializes in solar consulting and EPC, increased by more than 3 percent after winning a Rs.164 crore contract to develop India’s first bio-hydrogen project in collaboration with Matrix Gas and Renewables Limited.

Price Variation

In Tuesday’s trading session, Gensol Engineering Ltd (NS:GENO)’s share price soared 3.19 percent to an intra-day high of Rs.972 per share, up from the previous close of Rs.941.95 apiece.

Is Gensol Engineering 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 is the news

On 2nd September, Gensol Engineering Ltd. and Matrix Gas & Renewables Ltd. won the bid for India’s first Bio-Hydrogen project. The project will transform 25 tons of bio-waste into 1 ton of hydrogen per day. Valued at Rs.164 crore, it is scheduled for completion in 18 months.

The company has strategically partnered with Westinghouse, USA, which has patented technology and experience in running plants worldwide. They will develop a facility to process 25 tons of bio-waste daily and produce 1 ton of green hydrogen per day. This will use the GH2-PREGS technology, which is based on plasma-induced gasification.

This initiative aligns with India’s National Green Hydrogen Mission. The collaboration marks a key milestone in renewable energy.

Management Commentary

Commenting on the development, Anmol Singh Jaggi, Chairman and Managing Director, of Gensol Engineering Ltd., said, “We are honored to emerge as the lowest bidder for EPC of India’s first biomass to green hydrogen project for India’s leading power generation company.

Gensol and Matrix consortium highlight our unwavering commitment to innovation and excellence within the renewable energy sector. By converting bio-waste into hydrogen, we are addressing critical environmental challenges and making a significant contribution to the nation’s energy transition.”

Order Book

As of the quarter ended June 2024, Gensol’s total order book, which includes solar projects, battery energy storage systems (BESS), and electric vehicle (EV) leasing, stands at Rs.5,025 crore.

Business Segments

Gensol Engineering operates in solar EPC, EV Leasing, and EV Manufacturing. Solar EPC contributes 82.66 percent of revenue, EV Leasing 16.96 percent, and other segments 0.37 percent. EV sales have not yet commenced.

Financial Overview

Turning towards the financials of the company, Gensol Engineering Limited reported Q1 FY25 revenue of Rs.295 crore, up remarkably by 103 percent from Rs.145 crore in the same quarter last year. Profit After Tax (PAT) increased by 50 percent to Rs.15 crore, compared to Rs.10 crore in the same period.

Company Profile

Gensol Engineering Limited is a leading company in the renewable energy sector, focusing on solar energy solutions and electric mobility. It specializes in engineering, procurement, and construction (EPC) services.

Written by – Siddesh S Raskar

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