Dark Horse Stock of the Day: Insolation Energy Gains 365% from Listing Price

The shares of Insolation Energy Ltd experienced a sharp rise today, hitting the upper circuit. It began the day at Rs 151, a substantial 2.19% up compared to the previous day’s closing price of Rs 147.75. The stock surged by 20% during the intraday session with significant volume.  

Currently, while writing this article the shares of the company is up by Rs 29.55 and at Rs 177.30 on BSE.  Moreover, it has touched a new 52-week high of Rs 177.30 today. The stock is trading in a blue-sky zone. 

Upon analysing today’s share volumes, it can be observed that there has been a significant increase of more than 7.86 times in volumes on the BSE. 

The stock’s 52-week highs and lows stand at Rs 177.30 and Rs 72.55, respectively. With a market capitalisation of just Rs 369.35 Crore, the stock has displayed remarkable performance in recent times, delivering a 46% return over the last month and an impressive 64% return year to date. 

Financial Performance  

If we check the company’s financials, in FY23 annual revenue experienced a substantial increase of 29.76% YoY, rising from Rs 215 Crore to Rs 279 Crore. The operating profit of the company stands at Rs 18 Crore, accompanied by an operating profit margin of 7%. Furthermore, the net profit of the company amounts to Rs 11 Crore.  

The company’s return on capital employed (ROCE) and return on equity (ROE) are at 31.4% and 48.3%, respectively. The Book value of the company is Rs 25.4, whereas the price to book value is 7 times. Furthermore, the price to earnings is 34.6 times.  

Regarding ownership, the promoters of the company possess 69.89% of the company’s shares. Whereas both foreign institutional investors (FIIs) and domestic institutional investors (DIIs) do not hold any stakes in the company. The remaining portion, which accounts for 30.11%, is owned by public investors. 

IPO Flashback 

Let’s recapitulate the subscription history of the company from September 29, 2022, which is the final day of IPO closing, the Insolation Energy IPO witnessed an overwhelming response with a subscription rate of 192.79 times. Among the different categories of investors, the retail category was subscribed 235.55 times, and the NII category was subscribed 150.02 times.

The IPO of Insolation Energy had a price band of Rs 36 to Rs 38 per share, and the lot size was set at 3000 shares. The total issue size amounted to Rs 22.16 Crore.

Eventually, the final issue price was determined at Rs 38 per share. The stock has delivered a remarkable multibagger return of approximately 365% based on its final price.

Business Overview 

Insolation Energy Ltd, established in 2015, is a specialized manufacturer of high-efficiency solar panels and modules in various sizes. Their cutting-edge 200 MW SPV Module manufacturing unit in Jaipur spans over 60,000 sq. ft and is equipped with advanced machinery. 

The company’s core activities include solar PV module manufacturing and trading of Solar Power Conditioning Units (PCU) and Lead Acid Batteries. Their PCUs harness solar and grid power to charge batteries, storing energy from solar panels. Additionally, they offer comprehensive solar energy solutions and serve as an integrated provider of engineering, procurement, and construction (EPC) services. It has established a strong presence in India through a wide network of over 30 distributors, showcasing its geographically diversified reach.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.