KPI Energy Trades 3% High, Supported by Robust Volume!

The NSE benchmark Nifty50 formed a bearish candle on Tuesday and we are seeing follow-up selling to that bearish candle, which suggests that the bears have their foot in the door. So, in the near term it’s better to adopt a cautious approach as far as trading in index is concerned, however, stock specific action is likely to continue on D-Street. Here is a stock which should be on your radar for the near-term as it has witnessed a continuation pattern breakout and it has received a commissioning certificate from GEDA.   

The stock we are talking about is KPI Green Energy. KPI Green Energy is a Smallcap stock with a market cap of Rs 1,984 crore. The stock is trading higher by nearly 3% on Wednesday along with robust volume. As a result, the stock has witnessed a breakout of continuation pattern known as the ascending triangle like pattern on the weekly chart.   

The ascending triangle is a bullish continuation pattern and is characterized by an upward rising trendline formed by connecting the higher, lower and a flat upper trendline that acts as resistance.   

Company has received Commissioning Certificates from Gujarat Energy Development Agency (‘GEDA’) for the capacity of 7.27 MWdc solar power project through KPI Green Energy (‘the Company’) and 2.91 MWdc through M/s. KPIG Energia Private Limited, a wholly owned subsidiary of the Company.   

Furthermore, ICRA has reaffirmed the credit rating to [ICRA]A- (Stable)/[ICRA]A2+ and also reaffirmed the outlook on long term rating to stable on May 9, 2023.   

About the company: KPI Green Energy Limited is engaged in solar power generation. It provides solar power, both as an independent power producer (IPP) and as a service provider (EPC contractor) to CPP customers. The company has also recently commissioned a 26.1-MW hybrid (16.1 MW wind & 10 MW solar) capacity, taking the company’s total installed IPP capacity to 98 MW. The entire capacities are located at Bharuch and Bhavnagar in Gujarat.    

The stock has delivered multibagger returns in the last one-year as it is up by 126% and in the last one month the stock has advanced 17.34%.