Single-Digit PE Penny stock below Rs 50 back to back upper circuits; Do you own it?
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 51.59 per share from its previous closing of Rs 49.14 per share. The stock’s 52-week high is Rs 1,049.30 per share and its 52-week low is Rs 38.42 per share. The shares of the company saw a spurt in volume by more than 3.90 times spurt in volume and hitting back-to-back upper circuits.
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.
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The National Company Law Tribunal (NCLT) has issued notices to BluSmart Mobility Ltd and Gensol Engineering Ltd regarding insolvency petitions. BluSmart faces two petitions for Rs 1 crore each in alleged defaults. Gensol faces a Rs 9 crore claim from Equentia Financial Services Pvt Ltd, a Rs 510 crore loan default petition from IREDA, and a petition from the Ministry of Corporate Affairs (MCA) citing corporate governance violations and fund diversion. These developments follow a SEBI investigation into alleged share price manipulation by Gensol's promoters. The NCLT has given both companies seven days to respond and has also allowed the freezing of Gensol's bank accounts and lockers.
The company has a market cap of over Rs 190 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.
Disclaimer: The article is for informational purposes only and not investment advice.