2:1 bonus share; Rs 1,000 crore order book & FIIs increase stake: Heavy buying witnessed in this multibagger engineering stock; hit back-to-back upper circuits!

The stock gave multibagger returns of 200 per cent in just 1 year and a whopping 3,900 per cent in 3 years.

Today, one of the Top Gainers on BSE, shares of Gensol Engineering Limited was locked in the upper circuit to Rs 882.10 per share from its previous closing of Rs 840.10. The stock has been hitting back-to-back upper circuits in the recent trading sessions.

Gensol Engineering Ltd, a diversified clean energy company offering solar EPC, electric vehicle manufacturing and leasing services, has significantly expanded its operations. They acquired nearly all shares of Gensol Clean Energy, a new subsidiary focused on renewable energy generation using solar and wind and secured a major 70 MW portion of a battery storage project from Gujarat Urja Vikas Nigam Limited. This project marks their entry into the battery storage market and strengthens their position in clean energy solutions. Additionally, Gensol Electric Vehicles, a subsidiary of Gensol Engineering, received approval for its new electric car to be manufactured in a new plant with a capacity of 30,000 cars per year. This, along with securing contracts for two solar power projects, demonstrates their commitment to clean energy and positions them as a key player in India's transition to a sustainable future.

Gensol Engineering Limited has completed a 160 MW solar power plant in Bhavnagar, Gujarat for Continuum Green Energy, a major renewable energy player in India. This Rs 128 crore project showcases Gensol's strength in delivering high-quality ground-mounted solar installations, adding to its over 600 MW portfolio of diverse solar projects across India. These projects include rooftop, ground-mounted, and floating solar solutions for various clients like commercial, industrial, and public sector units, under both turnkey (complete) and balance-of-system (remaining components after panel procurement) contracts. The Continuum Green Energy project is Gensol's sixth major ground-mount project, further solidifying their expertise in large-scale solar development. Located in Gujarat, this project exemplifies Gensol's full-service capabilities, from development to operation, and contributes significantly to the region's sustainable future by harnessing the transformative power of solar energy.

In Q3FY24, the company's revenue surged 335 per cent to Rs 227 crore, driven by strong growth across all segments. This resulted in a significant improvement in profitability, as the company turned a net loss of Rs 2 crore in Q3FY23 into a net profit of Rs 12 crore in Q3 FY24, marking a per turnaround (734 per cent).

The company's performance for the first nine months of FY24 has been strong, with all key financial metrics showing significant growth compared to the same period in FY23. Revenue nearly tripled to Rs 584 crore, and PAT more than doubled to Rs 34 crore, demonstrating strong growth across all business segments and improved operational efficiency. The shares of the company have ex-traded bonus shares in the ratio 2:1 on October 17, 2023.

The company has a market cap of over Rs 3,300 crore and as of December 31, 2023, the company’s order book stands at over Rs 1,000 crore. As of December 2023, FIIs bought 4,84,721 shares and increased their stake to 2.94 per cent compared to 2.57 per cent in September 2023 while DIIs increased their stake to 0.84 per cent in December 2023 compared to 0.75 per cent in September 2023.

An ace investor, Mukul Agrawal owns 5,70,000 shares or 1.51 per cent stake in the company. The stock gave multibagger returns of 200 per cent in just 1 year and a whopping 3,900 per cent in 3 years. Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.