Stock of this smallcap power generation company has zoomed 123% in 3 months

Shares of KPI Green Energy were locked in the 10-per cent upper circuit at Rs 1,823.80, hitting a new high on the BSE in Wednesday's intraday trade, after the company announced that it has received a new order of 5 MW solar power plant under Captive Power Producer (CPP) segment.

KPIG Energia Private Limited, a wholly owned subsidiary of the company, shall develop the projects. These are scheduled to be completed in the financial year 2024-25, in various tranches as per the terms of the order, the company said.

Average trading volumes on the counter jumped four-fold with a combined 593,215 equity shares, representing 1.5 per cent of total equity of KPI Green Energy, having changed hands on the NSE and BSE till 1:20 PM. Besides, there were pending buy orders for a combined around 45,000 shares on both the exchanges.

In the past eight trading days, the stock of the smallcap power generation company has surged 30 per cent; while, in the past three months, it has zoomed 123 per cent.

Separately, KPI Green Energy has fixed February 15, 2024, as the 'Record Date' for determining the eligibility of shareholders entitled for issuance of bonus equity shares of the company in the proportion of 2:1 i.e. 1 equity share for every 2 existing equity shares held in the company.

KPI Green Energy is engaged in solar power generation. It provides solar power, both as an independent power producer (IPP) and as a service provider (EPC contractor) to CPP customers.

In the first half (April to September) of FY24, KPI Green Energy had bagged the single largest order of Hybrid CPP of 145.20 MW and had also won a 240 MW DC bid from Gujarat Urja Vikas Nigam (GUVNL) under the IPP Segment. With these, the total order book on hand at gross level stood at 541+ MW, pushing the company closer to its ambitious target of 1,000 MW by 2025.

In FY24, the group is expected to post healthy growth in revenues and profitability, led by higher execution of CPP orders and commissioning of the 26.1-MW hybrid power project.

Rating agency Icra has a 'stable' outlook on the long-term rating of KPI's instruments as it believe the Group will continue to benefit from the extensive experience of its promoter, and a healthy order book position in the CPP segment providing near-term revenue visibility. 

"Also, the IPP segment is expected to demonstrate satisfactory generation levels, as witnessed in the past, leading to stable cash inflows that would support the company’s profitability and debt servicing," Icra said in its rating rationale.