The shares of this smallcap company jumped around 3 percent in Wednesday’s trading session after securing the project to set up India’s first Green Hydrogen Valley in Pune.
Price Movement:
With a market capitalization of Rs. 3,532 crores, the shares of Gensol Engineering Ltd started Wednesday’s trading session on a higher note at Rs. 930 compared to its previous close of Rs. 908.35.
During the trading session, the shares hit a high of Rs. 936.95, gaining around 3 percent and are currently trading at Rs. 930 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 Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that in collaboration with Matrix Gas & Renewables Ltd, it secured a project to establish India’s first Green Hydrogen Valley in Pune, Maharashtra.
The project aims to supply green hydrogen on a round-the-clock basis for 20 years, specifically catering to the needs of the speciality chemical industries located in the Pune region.
Management Commentary:
Commenting on this achievement, Anmol Jaggi, Managing Director, Gensol Engineering Ltd., said, “We feel immense pride to develop India’s first Green Hydrogen Valley project. Government of India has taken a great step in promoting these Hydrogen Valleys through Department of Science & Technology (DST).
We are going to supply Green Hydrogen to the specialty chemical Sector in Pune, Maharashtra on round the clock (RTC) basis to develop the Green Hydrogen economy in India”
Financials:
Looking at the company’s financial statements, the revenue decreased by around 26 percent from Rs. 399 crores during the March quarter to Rs. 295 crores in the June quarter. On the other hand, the net profits declined by 25 percent from Rs. 20 crores to Rs. 15 crores during the same timeframe.
Order Book:
As of Q1 FY25, Gensol Engineering Ltd reported a total order book of Rs. 5,025 crore. This figure includes projects across solar energy, battery energy storage systems (BESS), and electric vehicle (EV) leasing sectors.
Recent Development:
Recently, Gensol Engineering had bagged India’s first bio-hydrogen project and secured a solar power project in Gujarat. The company also entered the US market last month.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 18.28 percent and a return on capital employed (RoCE) of 12.41 percent for the period spanning FY23-24. Furthermore, the net profit margin during FY23-24 was at 5.55 percent.
Company Profile:
Gensol Engineering Limited is part of the Gensol Group of companies, it is a leading player in the renewable energy sector in offering engineering, procurement, and construction (EPC) services for the development of solar power plants.
It operates across four segments namely Solar EPC, Solar Panel Tracking Tech, EV Leasing, and EV Manufacturing.
Written By Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Smallcap stock jumps 3% after company to set up India’s first green hydrogen valley in Pune appeared first on Trade Brains.
To understand more about InvestingPro, watch this video: https://www.youtube.com/watch?v=_WfQcN5vjI