GP Eco Solutions India (GPESL) secured an order for supplying 200MW of solar inverters. The order is set to be completed by the end of March 2025. Following the announcement there was a rush among the investors that pushed the stock to close in green.
Stock Performance and Market Impact
GP Eco Solutions shares rallied by 4.50% to INR 263 per share, up from its previous closing price of INR 252.10 per share. The stock’s 52-week high stands at INR 470 per share, while the 52-week low is INR 212.20 per share, and the stock has risen 24% from its 52-week low. GP Eco has a market capitalization of over INR 300 crore. This rally indicates that investors are confident about the company’s growth.
Understanding GP Eco Solutions India
GP Eco came into existence in 2010, the company manufactures panels, solar plants, solar inverters, and electronic equipment. GPESL caters to industry giants such as Sungrow India, Saatvik Green Energy, and LONGi Solar.
In addition to its distribution business, the company provides solar energy solutions in the form of EPC services. GP Eco also manufactures hybrid solar inverters and lithium ferro-phosphate (LFP batteries as an original equipment manufacturer (OEM).
IPO Performance and Financial Strength
GP Eco Solutions made its market debut on 24 June 2024 on the NSE Emerge platform, the issue of INR 30.79 crore was oversubscribed and delivered 318.88% returns on listing day.
The company’s financial performance has been robust:
- Revenue Growth: Revenue increased from INR 46.47 crore in FY 2021 to INR 136.00 crore in FY 2024.
- Net Income: Net profit rose from INR 0.97 crore in FY 2021 to INR 7.00 crore in FY 2024
- Profit Margins: The company’s return on capital employed stands at 40% in FY 2024
Market Presence and Growth Prospects
GP Eco Solutions India operates in several states, including Jammu & Kashmir, Himachal Pradesh, Punjab, Uttarakhand, Haryana, Delhi, Rajasthan, and Uttar Pradesh. The company’s key focus areas include:
- Distribution of Solar Inverters and Panels
- On-grid Solar Inverters
- Hybrid Solar Inverters & Batteries
- Solar Panels
- EPC Services
- Operation & Maintenance of Solar Plants
As the government is focusing on renewable energy and encouraging businesses, and citizens to adopt clean energy sources, GPESL is all set to capitalize on this market. New order for inverters will strengthen the company’s presence and showcase its ability to fulfil large-scale orders.
With the increased adoption of renewable energy in India and government incentives favouring solar installations, GPESL is well-positioned to capitalize on this expanding market. The new 200MW+ order further strengthens its presence and showcases its ability to secure large-scale contracts.
Conclusion
The recent order win highlights the company’s growing influence in the solar energy sector. The stock. Amid the ongoing market conditions, the stock is trading in the green which highlights the company’s strong fundamentals and financials. Instead of focusing on short-term volatility investors should target for a long-term goal. India’s green energy sector is growing at a rapid pace which can benefit the company in the long term. However, investors should do thorough research before investing in securities.
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