KP Green Engineering Stock Surges 9% as Net Profit Soars 91% YoY; Strong Growth in Revenue and Promising Future Ahead
KP Green Engineering Stock : KP Green Engineering Ltd., a KP Group company known for manufacturing galvanized steel structures, saw its stock price jump over 9% today after the company posted stellar H2 FY25 results, showcasing strong growth in revenue and profitability. The sharp rise in financial performance, coupled with the announcement of a dividend, has caught the attention of investors.
Stock Jumps on Strong Results
The company’s stock opened at ₹459—close to its previous closing—but quickly surged to a high of ₹498, marking a 9.11% increase in intraday trade. It currently trades at around ₹483, reflecting heightened investor interest after the release of its half-yearly results.
With a market capitalization of ₹2,414 Crore, KP Green Engineering is now one of the more prominent players in the mid-cap manufacturing segment. The jump in share price is backed by robust financial metrics and a positive outlook fueled by upcoming product verticals.
Financial Highlights: H2 FY25
KP Green Engineering posted an impressive 76.35% YoY revenue growth, increasing from ₹245.12 Crore in H2 FY24 to ₹432.28 Crore in H2 FY25. On a half-yearly basis, revenue also grew by 64.77%, up from ₹262.35 Crore.
Net profit growth was even more significant, showing a 91.38% YoY rise from ₹24.04 Crore to ₹46.01 Crore. Compared to H1 FY25, the net profit rose 67.43% from ₹27.48 Crore.
Here are the key financial ratios and figures:
| Metric | Value |
|---|---|
| Market Cap | ₹2,414 Cr |
| Current Price | ₹483 |
| High / Low (52W) | ₹769 / ₹340 |
| Stock P/E | 32.6 |
| Book Value | ₹64.8 |
| Dividend Yield | 0.04% |
| ROCE (Return on Capital Employed) | 30.1% |
| ROE (Return on Equity) | 25.0% |
| Face Value | ₹5.00 |
| Earnings Per Share (EPS) | ₹14.70 |
| PAT Margin (YoY) | Increased from 10% to 10.5% |
| Dividend Declared | ₹0.20 per share (4% of face value) |
The board has also recommended a dividend of ₹0.20 per share, which is 4% of the face value. This will be subject to shareholder approval at the upcoming Annual General Meeting.
Strategic Expansion and New Verticals
KP Green Engineering is gearing up for future growth with several new product verticals planned for launch in the coming months. These include:
- Asia’s Largest Galvanizing Plant
- Torque Tube Mill for solar tracking systems
The company also has its sights set on future innovations, including:
- Offshore Wind Tubular Tower
- Green Hydrogen Backward Integration Projects
These projects are expected to enhance the company’s capabilities, diversify revenue streams, and contribute significantly to India’s clean energy and infrastructure goals.
About KP Green Engineering
Established in 1994 by Dr. Faruk G. Patel, KP Green Engineering Limited is part of the KP Group. The company specializes in manufacturing fabricated and hot-dip galvanized steel structures, offering customized solutions for:
- Lattice Towers
- Substation Structures
- Solar Module Mounting Systems
- Cable Trays
- Earthing Strips
- Crash Barriers
The company’s facilities are located in Gujarat, and it caters to various sectors including telecom, power transmission, and renewable energy.
Investor Sentiment and Outlook
With a consistent increase in both top-line and bottom-line growth, strong ROE and ROCE metrics, and a slew of upcoming industrial projects, KP Green Engineering appears poised for long-term growth. The company’s expansion into renewable and infrastructure-related verticals makes it a compelling story in India’s industrial manufacturing narrative.
Key Questions & Answers
Q1: Why did KP Green Engineering’s stock jump 9% today?
A: The stock surged due to the company’s impressive H2 FY25 results, which showed a 91% YoY increase in net profit and a 76% YoY rise in revenue.
Q2: What was the company’s net profit in H2 FY25?
A: The company posted a net profit of ₹46.01 Crore, up from ₹24.04 Crore in the same period last year.
Q3: Has KP Green Engineering declared any dividend?
A: Yes, the board recommended a dividend of ₹0.20 per share, subject to shareholder approval.
Q4: What are the company’s upcoming projects?
A: The company plans to launch Asia’s largest galvanizing plant, a torque tube mill for solar trackers, and future projects including offshore wind towers and green hydrogen backward integration.
Q5: Is KP Green Engineering a good stock to watch?
A: With strong financial performance, a growing product portfolio, and a solid presence in the renewable energy and infrastructure sectors, the stock holds significant long-term potential.
Conclusion:
KP Green Engineering’s outstanding financial results, promising dividend announcement, and future-ready expansion plans have rightly put it in the spotlight. As India continues to invest in infrastructure and renewable energy, companies like KP Green Engineering stand to gain significantly. Investors looking for a robust, growth-oriented manufacturing play may find this stock worth considering.
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