Single-Digit PE Penny stock below Rs 50 hit 5 per cent upper circuit after 97 per cent fall from highs; Will the rally continue?
The stock has a PE of 2x whereas the industry PE is 45x with Enforcement Directorate Raipur holds a 1.37 per cent stake.
Today, shares of Gensol Engineering Ltd hit a 5 per cent upper circuit to Rs 42.46 per share from its previous closing of Rs 40.44 per share. The stock’s 52-week high is Rs 1,063.95 per share and its 52-week low is Rs 38.42 per share. After a 97 per cent plunge from its all-time highs of Rs 1,281.70 per share, the stock hit the upper circuit with a 12 times spurt in volume.
The National Company Law Tribunal (NCLT) has issued notices to BluSmart Mobility Ltd and Gensol Engineering Ltd in response to three insolvency petitions filed by financial creditors over outstanding payments. Spectrum Trimpex Pvt Ltd and Catalyst Trusteeship Ltd have each filed petitions under Section 7 of the Insolvency and Bankruptcy Code (IBC), alleging that BluSmart defaulted on dues of Rs 1 crore each. Additionally, Equentia Financial Services Pvt Ltd has claimed that Gensol Engineering owes it nearly Rs 9 crore. The NCLT has instructed both companies to submit their responses within seven days.
Gensol Engineering is facing further scrutiny, with multiple actions initiated against it. The state-run Indian Renewable Energy Development Agency (IREDA) filed a Section 7 petition under the IBC due to a default on a Rs 510 crore loan. The Ministry of Corporate Affairs (MCA) has also filed a petition against Gensol, citing alleged corporate governance violations, fund diversion, and financial misstatements. These developments follow a SEBI investigation that began in June 2024 into alleged share price manipulation and fund diversion by Gensol's promoters, leading to an interim order on April 15, 2025, that barred them from the securities market and key managerial positions. The NCLT has also permitted the Centre to freeze bank accounts and lockers belonging to Gensol Engineering, its ten subsidiaries, and several individuals following investigations into financial irregularities.
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About the Company
Gensol Engineering Limited, founded in 2012, has rapidly become a prominent player in the renewable energy landscape, offering comprehensive solutions encompassing solar EPC services in India and the Middle East, advanced solar tracking through Scorpius Trackers, and a significant push into electric mobility with EV leasing and manufacturing. With a workforce exceeding 500 professionals, Gensol has executed over 770 MW of solar projects, establishing itself as a top-tier EPC provider, and is further expanding its portfolio into battery energy storage and green hydrogen, while simultaneously driving the adoption of electric vehicles through its manufacturing facility and leasing services, catering to a diverse clientele.
Results: According to Quarterly Results, the net sales increased by 30 per cent to Rs 345 crore and the net profit increased by 6 per cent to Rs 18 crore in Q3FY25 compared to Q3FY24. In its nine-month results, the net sales increased by 42 per cent to Rs 1,056 crore, EBITDA increased by 89 per cent to Rs 246 crore and net profit increased by 34 per cent to Rs 67 crore in 9MFY25 compared to 9MFY24. Looking at its annual results, the net sales increased by 142 per cent to Rs 963 crore and the net profit increased by 129 per cent to Rs 53.5 crore in FY24 compared to FY23.
The company has a market cap of over Rs 160 crore and has an order book of Rs 7,000 crore as of December 31, 2024. The stock has a PE of 2x whereas the industry PE is 45x with Enforcement Directorate Raipur holds a 1.37 per cent stake.
Will the rally continue in the stock? Let us know your thoughts in the comments below
Disclaimer: The article is for informational purposes only and not investment advice.