Ashish Kacholia’s stock surged by 3% following the announcement of an order from GUVNL for battery energy storage systems
Ace Investor Ashish Kacholia’s invested company, Advait Energy Transitions Limited, specializes in providing products and solutions for power transmission, power substation, and telecommunication infrastructure. Recently, the company’s stock surged by 3.2 percent following an order from Gujarat Urja Vikas Nigam for 50MW battery energy storage systems.
With a market capitalization of Rs. 1,676.31 Crores, Advait Energy Transitions Limited saw its shares reach a day’s high of Rs. 1,578.95 per equity share, marking a 3.2 percent increase. The stock later settled at Rs. 1,552.05, up 1.46 percent from the previous day’s closing price of Rs. 1,529.65. Over the past year, the stock has delivered an impressive return of 86 percent, outperforming the Nifty Index.
The surge in the company’s stock price was triggered by the receipt of a Letter of Intent (LOI) from Gujarat Urja Vikas Nigam Limited (GUVNL) for a 50 MW or 500 MWH project to establish Standalone Battery Energy Storage Systems in Gujarat. This project, awarded under the Tariff based Global Competitive Bidding in Phase-IV, includes viability gap funding support and is expected to be completed within 18 months.
Advait Energy Transitions Limited, formerly known as Advait Infratech, was founded in 2009. The company specializes in power transmission, generation, and energy transitions, offering products and solutions for power infrastructure, telecommunication projects, and green hydrogen systems. With a focus on innovation, sustainability, and energy consultancy services, the company aligns with global trends towards renewable energy and decarbonization. Advait Energy Transitions Limited aims to lead in green technologies, providing tailored solutions to enhance performance and reliability in energy systems, ultimately contributing to a sustainable future in the energy sector.
Financial Analysis and Ratios
The company’s revenue from operations decreased by 5.63% year on year, dropping from Rs. 48.95 Crores in Q2FY24 to Rs. 46.19 Crores in Q2FY25. This decline was accompanied by a decrease in profit from Rs. 5.50 Crores to Rs. 4.03 Crores.
In terms of return ratios, the return on equity (RoE) was 36.69% and the return on capital employed (RoCE) was 34.78% in FY24. Additionally, the company maintained a debt-to-equity ratio of 0.62 as of FY24.
Shareholding Structure
As of September 2024, the promoters of Advait Energy Transitions held a 69.44% stake in the company, while Foreign Institutional Investors (FII) held approximately 0.01%. The remaining 30.55% was held by Public Investors. Notably, Ace Investor Ashish Kacholia acquired a fresh stake in September 2024, now holding around 2.67% of the company’s shares.
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