CLN Energy Shares Surge Over 6% After Securing ₹43 Crore Order from Singapore-Based Firm
Stock Jumps on Export Deal for Lithium-Ion Batteries
CLN Energy Shares Surge : Shares of CLN Energy Limited, a leading manufacturer of custom lithium-ion batteries and powertrain components for electric vehicles (EVs), witnessed a significant rally during Tuesday’s trading session. The stock surged by 6.3% intraday, driven by the announcement of a ₹43 crore export order from a Singapore-based multinational company.
Stock Performance & Market Reaction
At 2:00 PM, the stock was trading at ₹299 on the BSE, marking a 4% gain compared to its previous close of ₹287.95. With a market capitalization of ₹318 crore, CLN Energy’s stock has been on investors’ radar, especially after its BSE SME IPO listing on January 30, 2025.
The IPO, which had a price band of ₹250 per share, received strong investor interest, contributing to its upward price momentum since listing.
Major Order Win: A Boost for Growth
According to regulatory filings with BSE, CLN Energy Limited has secured a significant export order worth nearly $5 million (₹43 crore) from an undisclosed Singapore-based multinational corporation.
- The order is for lithium-ion batteries, cabinets, and other related components.
- The contract is scheduled for completion within 90 days.
- This marks another milestone in CLN Energy’s expansion into international markets, reinforcing its presence in the global EV battery and energy storage solutions sector.
Recent Orders Reflect Strong Business Momentum
This latest contract follows another ₹77 crore purchase order that CLN Energy secured on February 17, 2025, from a Public Sector Undertaking (PSU) in the telecom industry for lithium-ion battery supplies.
The company’s growing order book underscores its ability to attract high-value contracts across diverse sectors, including telecom and EV energy storage.
Financial Performance: Robust Growth in Profits
CLN Energy’s financials reflect steady revenue growth and an impressive profit surge:
| Financial Metric | FY23 | FY24 | YoY Growth |
|---|---|---|---|
| Revenue from Operations | ₹129 Cr | ₹133 Cr | +3% |
| Net Profit | ₹1 Cr | ₹10 Cr | +900% |
Despite a modest 3% increase in revenue, the company has managed to achieve 900% growth in net profits, indicating improved cost efficiency and higher profit margins.
Company Overview: Innovating in EV Energy Solutions
Founded in 2019, CLN Energy specializes in manufacturing custom lithium-ion batteries, electric motors, and powertrain components for EVs. The company’s B2B solutions cater to various applications, including:
- Electric two-wheelers, three-wheelers, and four-wheelers.
- Traction applications for commercial vehicles.
- Stationary applications in solar energy, energy storage systems (ESS), and telecom sectors.
Stock Valuation & Key Financial Ratios
With a stock P/E ratio of 32.5, CLN Energy trades at a premium compared to the industry P/E of 26.1, reflecting strong investor confidence in its growth potential.
| Stock Metric | Value |
|---|---|
| Market Cap | ₹318 Cr |
| Current Price | ₹301 |
| 52-Week High/Low | ₹355 / ₹251 |
| Stock P/E | 32.5 |
| Dividend Yield | 0.00% |
| Return on Capital Employed (ROCE) | 146% |
| Return on Equity (ROE) | 115% |
| Debt to Equity Ratio | 0.38 |
| Promoter Holding | 72.6% |
| Earnings Per Share (EPS) | ₹28.8 |
| 200-Day Moving Average (DMA) | ₹260 |
| Relative Strength Index (RSI) | 58.6 |
| Debt | ₹6.78 Cr |
| Free Cash Flow (3 Years) | ₹1.22 Cr |
| Free Cash Flow (Latest Year) | ₹1.89 Cr |
Why This Matters for Investors
- Steady Growth – Despite a small increase in revenue, the 900% surge in net profit shows the company’s improving operational efficiency.
- Strong Order Pipeline – The ₹43 crore export order and ₹77 crore PSU order highlight rising demand for lithium-ion batteries.
- Expansion into Global Markets – The Singapore deal showcases CLN Energy’s ability to secure international contracts.
- Robust Financial Health – High ROCE (146%) and ROE (115%) make it an attractive pick among EV component manufacturers.
Conclusion: A Promising Future Ahead
CLN Energy’s latest order win and its strong financial performance position it as a rising player in the EV battery industry. As demand for sustainable energy solutions grows, the company stands to benefit from its diverse product portfolio and expanding market reach.
With increasing investor interest and a steady flow of high-value orders, CLN Energy’s stock remains a compelling choice for long-term investors eyeing the booming EV sector.
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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.