Gensol Engineering, a company offering engineering, procurement, and construction services for solar power plants, has experienced a substantial increase in its stock price over the past four years. Since its listing, the stock has surged by an astounding 5,200%. An investment of Rs 10,000 made four years ago would now be valued at Rs 5 lakh, according to an analysis by ET Markets.
Gensol Engineering, founded in 2012 and part of the Gensol Group of companies, excels in managing turnkey projects on an international scale. With a dedicated workforce of over 240 employees, the company has successfully installed ground-mounted and rooftop solar power plants totaling over 600 MW. Additionally, Gensol Engineering has expanded its operations to include an electric vehicle (EV) manufacturing facility in Pune, focused on the development and production of electric three-wheelers and four-wheelers.
The company’s recent performance has been impressive. In the December quarter, Gensol Engineering reported a robust growth of 335% in revenue, reaching Rs 227 crore. EBITDA also increased by 312% to Rs 70 crore.
In terms of shareholding, the promoters hold a majority stake of 62.59%, while public shareholders own the remaining 37.41%. Notably, ace investor Mukul Agarwal holds a 1.51% stake in the company as of December 2023.
The stock has continued its winning streak in the recent past, with a 32% gain in the last month and a remarkable 91% increase in the last six months.
Technical experts provide their outlook on the stock. Mileen Vasudeo, a Technical Analyst at Arihant Capital, notes that the stock is forming a higher top, higher bottom formation, indicating strength. Vasudeo suggests holding the stock with a stop loss of 1,010, and anticipates that it could reach 1,200, with a possible extension to 1,350 levels.
On the other hand, Vaibhav Kaushik, a research analyst at GCL Broking, highlights that the stock is trading above all moving averages and warns that it may be slightly overbought, as indicated by the RSI at 75. Kaushik advises investors to consider buying the stock on dips near 1,000, with a stop loss of 951 and a target of 1,370.
Gensol Engineering’s success story as a multibagger stock serves as an example of the potential for substantial returns in the stock market. Investors are encouraged to consider the company’s performance, projects, and expert recommendations when making investment decisions.
