Shares of KPI Green Energy, a solar power generation company, continued their upward trajectory, reaching a new all-time high of ₹683.6 per share during Tuesday's trading session.
The stock has witnessed a remarkable bull run over the last eight trading sessions, surging from ₹494.30 apiece to ₹671.60, resulting in a phenomenal return of 35.85%.
This significant surge in the stock price can be attributed to the company's successful acquisition of multiple renewable energy projects. On June 9, the company announced that it had received commissioning certificates from the Gujarat Energy Development Agency (GEDA) for a 7.20 MW wind-solar hybrid power project.
This project, consisting of 4.20 MW of wind and 3MW dc solar capacity, was undertaken for their client Nouveau Jewellery LLP in Surat under the company's 'Captive Power Producer (CPP)' business segment.
This is the second approval from GEDA in just two days. On June 8, the company reported that it had received commissioning certificates from GEDA for its own 26.10 MW wind-solar hybrid power project in Bhavnagar, Gujarat. This project comprised 16.10 MW of wind and 10MW dc solar capacity.
Furthermore, on June 7, KPI Green Energy secured a new largest single Letter of Intent (LOI) for executing Wind-Solar Hybrid Power Project.
The project, with a capacity of 40 MW (21.50 MW wind and 18.50 MW solar), was awarded by Anupam Rasayan India in Surat, again under the 'Captive Power Producer (CPP)' business segment of the company.
"This largest single LOI for the 40 MW Wind-Solar Hybrid Power Project is a significant milestone for our company, showcasing our strong position in the renewable energy market. This achievement further strengthens our position in the industry and reinforces our commitment to driving the transition towards clean and renewable energy sources," the company said in an exchange filing.
These successful project acquisitions have contributed to positive investor sentiment and the surge in the company's stock price. This recent stock boom has resulted in a 122.5% gain over the last one-year period.
For the March-ending quarter, the company reported a 220% YoY jump in its consolidated net profit to ₹32 crore. It had reported a net profit of ₹10 crore in the corresponding quarter of last year.
The revenue from operations during the same quarter surged to ₹184 crore from ₹74 crore in Q4FY22, an increase of 148.64%. The revenue from its captive power project segment, which contributed more than 80% of the company's revenues in Q4, grew by 167% YoY to ₹150 crore.
The consolidated sales of the Captive Power Project (CPP) in FY23 witnessed an impressive YoY growth of 225%, increasing from ₹168.39 crores to ₹547.97 crores.
Similarly, the Independent Power Producer (IPP) segment experienced a growth of 64%, with sales rising from ₹57.59 crores to ₹94.73 crores.
The ratio of revenue mix between CPP and IPP changed from 75:25 in FY 21–22 to 85:15 in FY 22–23, which led to a change in the overall margin. As of March 31, 2023, the company had successfully energized a cumulative capacity of over 312 MW under both IPP and CPP segments, according to the company's exchange filing.
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