KPI Green Energy, a prominent player in the renewable energy sector, is making waves in the stock market, especially with its recent announcement of bonus shares. The solar energy company has decided to distribute bonus shares to its shareholders, making it an exciting time for investors. Here’s everything you need to know about the stock, its remarkable growth, and the upcoming bonus share issuance.
Bonus Share Announcement: What Does it Mean for Investors?
KPI Green Energy announced on November 14, 2024, that it would issue bonus shares to its shareholders in a 1:2 ratio. This means that for every two shares held by an investor, they will receive one additional share for free. The record date to determine the eligible shareholders for the bonus shares has been set for January 3, 2025. Shareholders who are registered as the beneficial owners of the shares in the company’s register or depository records by this date will be entitled to receive the bonus shares.
This is an exciting development for existing shareholders, as the bonus shares are expected to provide additional value to their investments. With a face value of ₹5 per share, this announcement adds further momentum to the company’s growing reputation in the stock market.
KPI Green Energy: A Multi-Bagger Stock
KPI Green Energy is often referred to as a multi-bagger stock due to its significant returns over a relatively short period. The company has delivered an incredible return of 11,800.45% over the last five years, according to BSE data. To put it into perspective, just five years ago, on December 20, 2019, the share price was below ₹7. Fast forward to December 20, 2024, and the share price has surged to approximately ₹800.90, marking a nearly 5% increase on that day.
If an investor had invested ₹1 lakh in KPI Green Energy’s stock five years ago, the value of that investment would have exceeded ₹1 crore by now—an astonishing return. This remarkable growth makes KPI Green Energy a standout stock, especially for those looking to capitalize on the renewable energy sector.
Strong Market Performance and Recent Developments
KPI Green Energy has shown exceptional performance not just over five years but also on a yearly basis. The company’s market capitalization currently stands at ₹10,528 crore, with its stock price increasing by about 90% in the last year.
This is not the first time KPI Green Energy has issued bonus shares. Earlier, the company distributed 1:1 bonus shares in January 2023, followed by another 1:2 bonus issue in February 2024. This consistent reward to shareholders demonstrates the company’s confidence in its growth and commitment to enhancing shareholder value.
Robust Financial Results for the September Quarter
In its most recent quarterly results, for the quarter ending in September 2024, KPI Green Energy reported impressive figures. The company’s revenue grew by 67% year-on-year, reaching ₹360 crore, compared to ₹215 crore in the same quarter of the previous year.
Moreover, the company’s consolidated net profit saw a stunning 100% increase, reaching ₹70 crore for the September 2024 quarter, up from ₹35 crore in the previous year. These results underscore the company’s strong growth trajectory and its ability to capitalize on the expanding renewable energy market.
Key Metrics of KPI Green Energy
- Market Cap: ₹10,528 Cr.
- Current Price: ₹802
- 52-week High/Low: ₹1,118 / ₹417
- Stock P/E: 45.4
- Book Value: ₹150
- Dividend Yield: 0.03%
- ROCE: 21.6%
- ROE: 29.6%
- Face Value: ₹5
These metrics show that KPI Green Energy is a well-established company with solid financials, making it an attractive stock for long-term investors.
About KPI Green Energy
Incorporated in 2008, KPI Green Energy Ltd is a part of the KP Group. The company focuses on developing, building, owning, managing, and maintaining renewable energy power facilities, particularly solar and wind-solar hybrid power projects. As an Independent Power Producer (IPP), KPI Green Energy plays a crucial role in the renewable energy space, generating clean power and contributing to India’s sustainability goals. The company also provides services to Captive Power Producers (CPPs) under the ‘Solarism’ brand.
Conclusion
KPI Green Energy has proven itself to be a formidable player in the renewable energy sector, consistently rewarding its investors with impressive returns. With its bonus share issuance, strong financial performance, and an increasing demand for clean energy, the company’s stock continues to be an attractive investment option for those seeking long-term growth.
For shareholders, the upcoming bonus shares are just another reason to be optimistic about the future of KPI Green Energy. As the company continues to grow and expand its footprint in the renewable energy market, its stock remains a valuable asset for investors looking to capitalize on the clean energy revolution.
