This solar EPC stock bags new order worth Rs 1,340 crore from Gujarat Urja Vikas Nigam!

Shares of the company gained more than 30 per cent in the last six months.

Gensol Engineering Limited (GEL) won a significant bid for a 250 MW/500 MWh battery storage system project from Gujarat Urja Vikas Nigam Limited (GUVNL). Valued at Rs 1,340 crore, the project will provide electricity on-demand to Gujarat’s power distribution companies during peak and off-peak hours. This will extend the availability of renewable energy beyond sunlight hours and improve grid stability. The project is designed for 250 MW/500 MWh energy delivery through two daily charge/discharge cycles. GUVNL also has the option to expand the project to 500 MW/1000 MWh, potentially generating Rs 2680 crore over the 12-year contract.

GEL has a strong solar EPC order book of Rs 1,176 crore. These fixed-price contracts are expected to be completed within 6-10 months. Additionally, GEL secured a Rs 520 crore contract in March 2024. The diversified order book, with clients across government and private sectors in over seven states, minimizes counterparty credit risk for GEL. The stock has also gained more than 6,400 per cent return in last three years.

Gensol Engineering Limited (GEL), the flagship company of Gensol Group, has a track record of more than a decade in the renewable power segment. GEL is engaged in providing EPC and Operations & maintenance (O&M) services for solar power projects. Going forward, GEL expects revenue from its EV manufacturing division for which it is currently setting up an EV manufacturing plant at Pune and sales of single axis trackers for solar power plants for which it has acquired majority stake in Scorpius Trackers Private Limited (STPL) during FY24.

The stock has shown robust growth in and investors should keep a close eye on this stock.

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