K2 Infragen Soars 5% After Winning 67.61 MWp Solar Project in Gujarat
K2 Infragen : In a major boost to its renewable energy portfolio, K2 Infragen Limited, a key player in India’s infrastructure and EPC sector, saw its stock price hit a 5% upper circuit at ₹82 on the NSE during Tuesday’s trading session. The surge came after the company announced that it had secured a 67.61 MWp solar EPC project in Gujarat.
Stock Performance and Market Reaction
K2 Infragen’s stock performance saw a sharp spike, closing at ₹80, which was 2.4% higher than its previous closing price of ₹78.1. Despite this recent surge, the stock remains significantly below its 52-week high of ₹329, recorded on July 4, 2024—currently trading at a 76% discount from its peak.
The company, which has a market capitalization of ₹101 crores, has been experiencing fluctuations in its stock price amid broader market trends and sectoral movements.
Project Details and Significance
K2 Infragen has been awarded the solar EPC project for a 67.61 Mega Watt DC capacity in Gujarat. This contract, which includes the supply of Balance of System (BOS) material, is part of a larger 450 MWp renewable energy initiative being developed by Coal India Limited in Khavda, Gujarat.
The contract was awarded by KPI Green Energy Limited, marking another significant milestone for K2 Infragen in the renewable energy sector. With this project, the company’s total order book under execution has now reached ₹578.54 crores.
Order Book Overview and Capital Expenditure Plans
As of March 15, 2025, K2 Infragen’s total order book stands at ₹547.43 crores, with unexecuted orders worth ₹327 crores. The breakdown of the company’s order book is as follows:
| Project Type | Contribution (%) |
|---|---|
| Road Projects | 64.23% |
| Water Supply Projects | 17.99% |
| Power Projects | 10.37% |
| Railway Projects | 7.13% |
| Civil Work Projects | 0.23% |
Additionally, the company has maintained an on-time project delivery rate of 83% in FY25.
To support its growth, K2 Infragen has allocated ₹12 crores for machinery upgrades, reinforcing its commitment to infrastructure excellence.
Future Growth Plans & Management Guidance
Looking ahead, K2 Infragen has ambitious plans for the next two years. The management has outlined the following key growth targets:
- Expand its order book to over ₹1,250 crores by FY27.
- Target annual revenue of ₹450 crores.
- Increase net profit to ₹36 crores.
- Diversify into renewable energy projects, including solar and wind power.
- Directly bid in transmission and railway projects.
- Participate in joint ventures (JVs) for large EPC contracts.
- Adopt AI and IoT for real-time project monitoring.
The company’s renewable energy focus aligns with India’s commitment to expanding its green energy capacity, making this latest contract a strategic addition.
Financial Performance: Challenges and Opportunities
Despite securing new projects, K2 Infragen’s financial performance has faced some short-term setbacks. Key financial highlights include:
- Revenue fell by 13.5% YoY, from ₹59 crores (H1 FY24) to ₹51 crores (H1 FY25).
- Net profit declined by 33.3%, from ₹6 crores to ₹4 crores.
- Debt stands at ₹24.1 crores, with a low debt-to-equity ratio of 0.35, indicating financial stability.
Financial Ratios Overview
| Metric | Value |
|---|---|
| Market Cap | ₹101 Cr. |
| Current Price | ₹79.8 |
| 52-Week High / Low | ₹329 / 66.7 |
| Stock P/E | 9.43 |
| Book Value | ₹54.7 |
| Dividend Yield | 0.00% |
| ROCE (Return on Capital) | 35.8% |
| ROE (Return on Equity) | 42.3% |
| Face Value | ₹10.0 |
| Promoter Holding | 40.4% |
| Price to Book Value | 1.46 |
| Debt to Equity Ratio | 0.35 |
| Industry P/E | 32.0 |
| Graham Number | ₹113 |
| Intrinsic Value | ₹376 |
| RSI | 31.4 |
| EPS (Earnings per Share) | ₹10.3 |
| Free Cash Flow (3Y Avg.) | ₹-1.16 Cr. |
| Free Cash Flow (5Y Avg.) | ₹2.45 Cr. |
About K2 Infragen Limited
Founded in 2015, K2 Infragen Limited is a leading Engineering, Procurement, and Construction (EPC) company in India. It specializes in infrastructure development, including roadways, water supply systems, power projects, railways, and civil engineering services.
The company has built a strong reputation for its timely execution of large-scale projects, making it a preferred choice for government and private sector contracts.
Q&A Section for Quick Insights
1. Why did K2 Infragen’s stock hit the upper circuit?
The stock surged 5% after the company announced winning a 67.61 MWp solar EPC project in Gujarat.
2. Who awarded the solar project to K2 Infragen?
The contract was awarded by KPI Green Energy Limited as part of Coal India’s 450 MWp renewable energy initiative in Gujarat.
3. What is K2 Infragen’s current order book value?
As of March 15, 2025, its order book stands at ₹547.43 crores, with ₹327 crores in unexecuted orders.
4. What is the company’s future revenue target?
By FY27, K2 Infragen aims to achieve ₹450 crores in annual revenue.
5. How has K2 Infragen’s financial performance been in recent quarters?
Revenue declined 13.5% YoY in H1 FY25, while net profit fell by 33.3% due to slower project execution.
6. What is the stock’s valuation compared to industry benchmarks?
K2 Infragen’s P/E ratio is 9.43, significantly lower than the industry P/E of 32, indicating potential undervaluation.
7. What are the company’s strategic expansion plans?
It aims to expand into renewable energy, directly bid for transmission and railway projects, and engage in joint ventures for EPC contracts.
8. What is the company’s debt situation?
K2 Infragen has a low debt-to-equity ratio of 0.35, reflecting a strong financial position.
9. What technology is the company adopting?
The company is implementing AI and IoT for real-time project monitoring to enhance efficiency.
10. Is K2 Infragen’s stock a good buy at current levels?
With a low P/E, strong order book, and upcoming renewable energy projects, it may be an attractive long-term investment.
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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.