Stock of this electric utilities company has zoomed 92% in 4 weeks

KP Energy was trading higher for the fifth straight day, surging 41 per cent during the same period.

Shares of KP Energy (KEPL) hit a new high of Rs 241.05, after rallying 10 per cent on the BSE in Monday’s intra-day trade on the back of heavy volumes. The stock of the electric utilities company was trading higher for the fifth straight day, surging 41 per cent during the same period.

In the past four weeks, it has zoomed 92 per cent from a level of Rs 125.75 on November 29, 2021, as compared to 0.17 per cent gain in the S&P BSE Sensex. At 01:58 pm; the stock was trading 9 per cent higher at Rs 238, against 0.45 per cent rise in the benchmark index. The trading volumes on the counter jumped over three-fold with 133,000 equity shares having changed hands till 01:58 pm, against 36,000 shares, which had been traded daily in the past two weeks on the BSE.

KPEL offers a unique value proposition that has been designed to address all issues that wind turbine generator (WTG) manufacturers, independent power producers (IPPs), and captive power consumers face when setting up a wind farm. The company provides end-to-end BoP solutions for WTGs, from ideation to commissioning.

For the July-September quarter (Q2FY22), KPEL had reported 496 per cent year on year (YoY) jump in its consolidated net profit at Rs 4.5 crore against Rs 0.8 crore a year ago. Revenue from operations jumped 244 per cent YoY to Rs 51.4 crore from Rs 14.9 crore in the year ago quarter. Earnings before interest, taxes, depreciation, and amortization (ebitda) margins, however, contracted 460 basis points to 17.7 per cent from 22.3 per cent.

As on September 30, 2021, out of 11.11 million outstanding equity shares, the promoters held 66.43 per cent stake in KEPL, according to the shareholding pattern data. The remaining 33.57 per cent stake is with individual shareholders (21.48 per cent) and others (12.09 per cent), data showed.

The company’s business outlook is supported by a healthy business pipeline totalling 1035.8 MW. It entered the financial year 2021-22 with the highest-ever business pipeline, and the outlook remains positive, it said in its FY21 annual report.

Projects lined up for execution and expected to be completed in FY22 are Sidhpur-II (250.8) MW and Mahuva I-V (185 MW). Put together, these two projects would lead to additional capacity commissioning of 435.8 MW, offering the company clear visibility of topline and bottomline for the coming year, KPEL added.