Rs 56 to Rs 338: This micro-cap company gave investors 5x returns in the last one year!

An investment of Rs 1 lakh in this company's shares last year would have turned to Rs 6 lakh today! 

Gensol Engineering Ltd, a micro-cap company, has delivered nearly 500% returns in the last one year. This company provides concept to commissioning solar advisory, execution and operation services for solar projects in India and abroad. On the domestic front, the company has a presence across 18 Indian states with offices in Ahmedabad and Mumbai. On the international front, it is executing projects in Africa, the Middle East and South-East Asia.    

While the company was established in 2012, and listed in 2019, a significant boom in the share price has come during the last one year. The company’s share price during this period jumped from Rs 56.48 on 28 May 2021 to Rs 338.10 on 25 May 2022.  

The movement in the share price could be attributed to the growing consciousness of shifting from non-renewable sources of energy to more sustainable sources. Aligned with this objective, the government announced ambitious targets of reaching 450 GW of renewable capacity by 2030. Post this, many renewable energy companies have seen their share price touch new highs.   

Speaking about the revenues of Gensol, the company’s net revenue more than doubled during just one financial year, going from Rs 63.9 crore in FY21 to Rs 160.41 crore in FY22, an increase of 151% YoY. Similarly, the PAT went from Rs 3.19 crore to Rs 11.12 crore in FY22, an increase of 248% YoY.   

The company is currently trading at a TTM PE of 33.33x as against the industry PE of 33.66x. In FY22, the company delivered an ROE of 23.95% and a ROCE of 22.84%.  

Today, at 3.30 pm, the company’s shares were trading at Rs 343.50, which is an increase of 1.60% from the previous closing price of Rs 338.10 on BSE. The company has a 52-week high and low of Rs 448.95 and Rs 45 on BSE.