Bhagyanagar India Shares Surge 4.7% After Acquiring 51% Stake in Surana Electrix
Stock Gains on Expansion into Solar Energy Sector
The stock of Bhagyanagar India Limited, a company primarily engaged in manufacturing copper products, surged 4.7% on the BSE on Wednesday after announcing its acquisition of a 51% stake in Surana Electrix Private Limited. This move signifies the company’s strategic expansion into the solar energy sector, aligning with India’s growing focus on renewable energy.
Stock Performance and Price Movement
Bhagyanagar India’s shares saw an intraday high of ₹80.1, up from the previous close of ₹76.51. With a market capitalization of ₹241 crore, the stock has had a mixed performance in the past year:
- 1-Year Performance: Down 14%
- 1-Month Performance: Up 7%
Despite recent volatility, the latest acquisition news has sparked investor interest, pushing the stock upwards.
Strategic Acquisition of Surana Electrix
As per regulatory filings, Bhagyanagar India purchased 51,000 equity shares of Surana Electrix at ₹10 per share, amounting to a total investment of ₹5.1 lakh. With this, Surana Electrix becomes a subsidiary of Bhagyanagar India.
Why This Acquisition Matters
The acquisition is aimed at:
- Manufacturing parts and accessories for motor vehicles and engines
- Expanding into trading, distribution, and supply of solar energy-related products
- Strengthening presence in the renewable energy sector
This strategic move aligns with India’s renewable energy goals and is expected to enhance Bhagyanagar India’s long-term growth.
Recent Developments: Major Solar Power Projects
Bhagyanagar India has been making significant strides in the renewable energy space. Here are two major projects secured by the company recently:
- February 6, 2025
- Won a Letter of Award (LoA) for a 65.7 MW Solar Power Generator (SPG) project in Uttar Pradesh.
- The project, under the PM KUSUM Component C2, involves an investment of ₹230 crore.
- February 25, 2025
- Secured an LoA for a 53 MW SPG capacity under the Mukhyamantri Saur Krushi Vahini Yojana 2.0 in Maharashtra.
- Investment in this project stands at ₹245 crore.
These projects underscore Bhagyanagar India’s commitment to renewable energy, positioning it as a key player in India’s clean energy transition.
Strong Financial Performance
The company has reported impressive financial growth, demonstrating its resilience and expansion strategy.
| Financial Metrics | Q3 FY24 | Q3 FY25 | YoY Growth |
|---|---|---|---|
| Revenue | ₹334.6 Cr. | ₹394.5 Cr. | +18% |
| Net Profit | ₹2.7 Cr. | ₹4.0 Cr. | +48.2% |
The strong revenue and profit growth reflect the company’s successful expansion efforts.
Company Overview: Bhagyanagar India Limited
Founded in 1985, Bhagyanagar India is a leading copper product manufacturer, serving Original Equipment Manufacturers (OEMs). Over the years, the company has diversified into:
- Telecom products
- Solar energy solutions
- Real estate
- Renewable energy (9 MW wind power project in Karnataka)
With its latest foray into solar energy-related manufacturing, the company is poised for long-term growth.
Key Financial Ratios and Market Metrics
Here’s a snapshot of Bhagyanagar India’s financial health:
| Metric | Value | Metric | Value |
|---|---|---|---|
| Market Cap | ₹241 Cr. | Current Price | ₹75.4 |
| 52-Week High/Low | ₹129 / 65 | Stock P/E | 20.3 |
| Book Value | ₹62.1 | Dividend Yield | 0.00% |
| ROCE | 8.06% | ROE | 6.36% |
| Debt to Equity | 1.20 | Industry P/E | 29.0 |
| Intrinsic Value | ₹77.5 | PEG Ratio | 1.69 |
| RSI | 42.2 | EPS | ₹3.72 |
| Free Cash Flow (3Yrs) | ₹80.5 Cr. | Free Cash Flow (5Yrs) | ₹34.1 Cr. |
| Total Debt | ₹239 Cr. | Pledged Shares | 0.00% |
With a debt-to-equity ratio of 1.20 and a price-to-book value of 1.23, the company has a moderately leveraged position.
Future Outlook
The acquisition of Surana Electrix, coupled with large-scale solar projects, indicates Bhagyanagar India’s commitment to renewable energy expansion. Analysts expect continued revenue growth as the company strengthens its foothold in the clean energy segment.
- The Indian government’s push for solar energy adoption could provide further opportunities.
- Investors should monitor stock performance and upcoming earnings reports for insights into the company’s growth trajectory.
Q&A: Key Takeaways from the Article
1. Why did Bhagyanagar India’s stock surge by 4.7%?
The stock jumped after the company announced acquiring a 51% stake in Surana Electrix, expanding into solar energy-related manufacturing.
2. What is the significance of the Surana Electrix acquisition?
The acquisition helps Bhagyanagar India diversify into motor vehicle parts and solar energy products, strengthening its renewable energy portfolio.
3. How much did Bhagyanagar India pay for the acquisition?
The company acquired 51,000 shares for ₹5.1 lakh, making Surana Electrix a subsidiary.
4. What are the recent solar projects undertaken by Bhagyanagar India?
- 65.7 MW Solar Power Project in Uttar Pradesh (₹230 Cr. investment)
- 53 MW Solar Power Project in Maharashtra (₹245 Cr. investment)
5. How has Bhagyanagar India performed financially?
The company reported an 18% YoY increase in revenue and a 48.2% rise in net profit in Q3 FY25.
6. What are Bhagyanagar India’s core business areas?
It manufactures copper products, telecom products, solar products, and has investments in real estate and renewable energy.
7. Is Bhagyanagar India a good investment?
With strong revenue growth, an increasing presence in renewable energy, and government-backed solar projects, the company presents long-term growth potential.
Final Thoughts
Bhagyanagar India’s strategic expansion into solar energy manufacturing marks a pivotal moment for the company. With rising demand for renewable energy solutions, this move could fuel long-term stock appreciation. Investors should keep an eye on future earnings, debt levels, and new project acquisitions to assess the company’s trajectory.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.