Pennar Industries shares gain 4% after co forms JV to sell solar modules

Shares of smallcap firm Pennar Industries surged up to 4.36 per cent at Rs 223.65 a piece on the BSE in Friday’s early morning deals. The stock of the company was in high demand in an otherwise weak market after it signed a joint venture agreement to manufacture and sell solar modules and cells. 

 

Pennar Industries signed an agreement with Zetwerk Manufacturing Businesses to manufacture and sell solar modules and cells, including the development and operation of the manufacturing unit.  The proposed business will address both domestic as well as International markets, the company said in an exchange filing on Thursday.

 

 

Zetwerk will hold 50.10 per cent stake in the joint venture, while Pennar will take over 45 per cent stake of the JV, with 4.90 per cent stake held by other stakeholders.  

 

In the recently concluded second quarter results of the financial year 2024-25 (Q2FY25), Pennar Industries reported a 19.17 per cent increase in net profit, reaching Rs 26.85 crore for the quarter ended September 2024, compared to Rs 22.53 crore in the same quarter of the previous year (September 2023). 

 

However, sales for the quarter declined by 8.17 per cent, totaling Rs 747.61 crore, down from Rs 814.13 crore in the corresponding period last year.

 

On the equities front, Pennar Industries stock has outperformed the market in the last six months as it has risen 22 per cent, while gaining 77 per cent in the last one year. In comparison BSE Sensex has risen 5 per cent year to date and 15 per cent in a year. 

 

The company has a total market capitalization of Rs 3,099.14 crore. Its shares are trading at a price to earnings multiple of 38.86 times and at an earning per share of Rs 5.51. 

 

At 9:58 AM; the shares of the company were trading 1.80 per cent higher at Rs 218.15 a piece. By comparison, the BSE Sensex was down 0.68 per cent at 80,739.40 level. 

 

Pennar Industries is an engineering company that manufactures a diverse range of products including steel products like cold rolled steel strips, precision tubes, and formed sections, as well as building systems such as pre-engineered building systems (PEBS), purlins, roofing sheets, and deck plates. The company also produces road safety systems, hydraulics and warehousing solutions, solar module mounting structures, and photovoltaic panels. 

 

Additionally, Pennar Industries offers solutions for water and sewage treatment and undertakes desalination projects.

 

With eight manufacturing facilities across India and a combined production capacity of 350,000 MT per year, Pennar Industries serves multiple sectors, including infrastructure, automobiles, power, general engineering, and building and construction.