Stock Shows 20% Upside After Joining Forces with Major Energy Player

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Stock Shows 20% Upside After Joining Forces with Major Energy Player
Credit: © Reuters.

By Aayush Khanna

In a significant stride towards championing sustainable energy solutions, EKI Energy Services Ltd., a global leader in carbon credits, and Indian Oil Corporation Ltd. (NS: IOC ) (IndianOil), India's premier Maharatna oil company, have formalized a Memorandum of Understanding (MOU). This strategic collaboration centers on the promotion of "Surya Nutan," IndianOil's innovative indoor solar cooking system.

IndianOil, a key player in the country's hydrocarbon sector, is aligning itself with green initiatives, committing to achieving net zero by 2046. As part of its diversification into alternative energy, the Fortune 500 energy major introduces "Surya Nutan," an Indoor Solar Cooking System based on its patented technology.

Under the MOU, IndianOil will share the technology with EKI, empowering them to enhance production and distribution using carbon finance. EKI, in turn, will manage the comprehensive life cycle of 'Surya Nutan,' covering manufacturing, marketing, installation, and after-sales services. This collaboration signifies a joint commitment to advancing clean energy practices, fostering a sustainable future, and contributing to India's green goals. By promoting accessible and eco-friendly cooking solutions, EKI and IndianOil aim to drive positive change in India's sustainable energy landscape.

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In the financial realm, it's noteworthy that EKI Energy stands as an undervalued stock, with an intrinsic value of INR 509, based on the average of 13 InvestingPro+ financial models. This presents investors with an appealing upside potential of 20% from the current market price of INR 422. Notably, the stock has witnessed a 72% decline over the past year, positioning it as a compelling candidate for mean reversion, potentially offering investors an attractive opportunity for value realization.

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