India’s electrical equipment sector, crucial for the country’s infrastructure and energy distribution, is expected to grow rapidly over the next few years.
According to heavyindustries.gov, this electrical equipment sector is estimated to reach $52.98 billion by 2027, growing at a CAGR of 11.68% from 2023 to 2027. This sector contributes 1.5% to India’s GDP and employees over 2.2 million people.
Gensol Engineering Ltd emerges as a promising company with a strong order book and vast future potential.
Gensol Engineering Limited
Gensol Engineering Limited provides solar consulting services, including engineering, procurement, and construction (EPC). The company offers technical , comprehensive engineering, quality control, and construction monitoring services for solar projects. Its projects span across India and several other countries.
Given the rapidly developing sector and Gensol Engineering Ltd’s strong position, this stock presents a golden opportunity for investors.
| Parameter | Value |
| Market Cap | ₹ 2,888 Cr. |
| Current Price | ₹ 760 |
| High / Low | ₹ 1,377 / ₹ 711 |
| Stock P/E | 30 |
| Book Value | ₹ 155 |
| Dividend Yield | 0.00% |
| ROCE (Return on Capital Employed) | 14.3% |
| ROE (Return on Equity) | 20.1% |
| Face Value | ₹ 10.0 |
| Intrinsic Value | ₹ 885 |
| PEG Ratio | 0.68 |
| EPS (Earnings Per Share) | ₹ 26.0 |
| Debt | ₹ 1,372 Cr. |
| Current Ratio | 1.27 |
| Quick Ratio | 1.27 |
| Pledged Percentage | 79.8% |
| Debt to Equity Ratio | 2.33 |
| Profit Growth | 146% |
| Profit Variation (3 Years) | 156% |
| Price to Book Value | 4.88 |
| Sales Growth (1 Year) | 100.0% |
| Promoter Holding | 62.6% |
| Net Profit | ₹ 81.4 Cr. |
| EBIT (Earnings Before Interest & Tax) | ₹ 281 Cr. |
| Sales Growth (5 Years) | 63.3% |
| EV/EBITDA (Enterprise Value to EBITDA) | 12.0 |
| Inventory | ₹ 3.88 Cr. |
Order Book Strength vs Market Cap
Gensol Engineering Ltd has a market cap of ₹2,882.13 crore, but its order book stands at ₹9,055 crore, which is 3.31 times its market cap. These figures show the company’s strength and the growing demand for its services. As of November 24, 2024, Gensol’s shares closed at ₹761.00 per share, up nearly 7% from the previous close of ₹713.35.
Financial Performance
Q2FY25 Stellar Results:
- Revenue increased by 13%, from ₹305 crore in Q2FY24 to ₹346 crore.
- Net Profit grew by 28%, from ₹18 crore to ₹23 crore.
H1 FY25 Key Achievements:
- The company achieved a 49% revenue growth, reaching ₹710 crore.
- PAT (Profit After Tax) reached ₹50 crore.
- Reduced debt by ₹185 crore.
- Achieved ₹800 crore AUM (Assets Under Management) from EV leasing.
- Launched “Let’s EV” platform to manage the entire lifecycle of electric vehicles.
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Expansion in EV Segment
EV Segment: New Horizons Gensol plans to launch a two-seater EV in Q1FY26, with an annual production capacity of 30,000 units. This swift move into the EV segment will position the company prominently in the automobile sector.
Solar Energy and International Projects
Gensol Engineering Ltd’s Solar EPC segment is its main business, where it is performing excellently.
- Won projects worth ₹463 crore.
- Entered Battery Energy Storage System (BESS) sector, expecting ₹3,100 crore revenue over the next 12 years.
- Secured a 23 MW rooftop project in Dubai.
- Plans to launch Scorpius Tracker in the USA.
- Partnered with Matrix Gas and Westinghouse for green hydrogen projects.
Leading Role in Renewable Energy
The rapid growth in the renewable energy sector provides Gensol a strong competitive edge. The company’s technical expertise and capability to execute complex projects set it apart in the market.
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Management Strategy and Future Plans
Gensol’s management is confident about meeting the EV launch timeline while focusing on maintaining strong cash flow and reducing debt.
- Plans for ₹750 crore Qualified Institutional Placement (QIP) to further enhance financial stability.
- Estimated consolidated EBITDA to exceed ₹400 crore in FY25.
- EV manufacturing segment to achieve break-even at 12,000 vehicles.
Upcoming Projects and Expansion Plans
- BESS market expected to reach ₹15,000-₹20,000 crore.
- Ready to play a major role with a ₹6,500 crore bid pipeline.
- Integrated model of EV leasing and manufacturing to enhance customer value and operational efficiency.
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