Multibagger Green Energy Stock Trading at a 46% Discount – A Hidden Gem for Your Watchlist
Multibagger Green Energy : The Indian stock market has been experiencing turbulence in recent sessions, with the Nifty 50 hovering around 22,900, marking a 13% decline from its 52-week high of 26,200. Despite this downturn, the green energy sector in India has been flourishing, with nearly 15 renewable energy stocks surging over 100% in the past year alone.
One such small-cap green energy stock, KPI Green Energy Ltd, presents an interesting investment opportunity, currently trading 46% below its 52-week high. Given the company’s strong fundamentals and ambitious growth plans, investors may find it worthwhile to keep an eye on this multibagger stock.
KPI Green Energy – A High-Growth Small-Cap Stock
KPI Green Energy Ltd, a leading player in India’s renewable energy sector, specializes in solar power generation through various business verticals. The company operates under the brand name ‘Solarism’ and has gained prominence for its Independent Power Producer (IPP) and Captive Power Producer (CPP) services.
Price Action & Multibagger Returns
The stock has seen an impressive rally over the past few years:
- 3-Year Returns: 743%
- 5-Year Returns: 2,702%
- Current Market Price: ₹394.5 (as of Wednesday)
- 52-Week High: ₹745
- 52-Week Low: ₹313
- Market Cap: ₹7,767 crore
The stock hit the upper circuit of 5% on Wednesday, indicating strong buying interest even amid broader market weakness.
Strong Financial Growth
KPI Green Energy has delivered robust financial performance in recent quarters:
| Financial Metric | Q3 FY24 | Q3 FY25 | YoY Growth |
|---|---|---|---|
| Revenue from Operations | ₹330 Cr | ₹458 Cr | 39% |
| Net Profit | ₹51 Cr | ₹85 Cr | 67% |
| EBITDA | ₹104 Cr | ₹137 Cr | 32% |
The company has demonstrated consistent revenue growth, improving profitability, and strong operational performance, making it an attractive prospect for investors.
Company Highlights & Growth Plans
KPI Green Energy has been expanding aggressively, with significant capacity additions and new project orders. Here are some key developments:
- Installed Capacity (as of January 15, 2025):
- IPP Capacity: 171+ MW
- CPP Capacity: 362+ MW
- Total Cumulative Capacity: 533+ MW
- Order Book: 2.87+ GW
- Total Capacity Target: 10 GW by 2030
- Land Bank Expansion: Grew from 3,071 acres (Sept 2024) to 4,180 acres (Jan 2025)
- Power Evaluation Capacity: Increased from 2.35 GW to 2.59 GW
These figures highlight strong execution capabilities and ambitious expansion plans, reinforcing KPI Green Energy’s growth trajectory.
Major MoUs & Recent Orders
KPI Green Energy has been actively securing large projects and government collaborations:
✅ MoU with Odisha Govt – Development of Renewable Energy Parks
✅ MoU with Rajasthan Govt – Hybrid, Solar & Wind Power Projects
✅ Recent Order (January 30, 2025):
- Signed a contract with Coal India Limited
- Project: 300 MWAC ground-mounted solar PV plant
- Location: GIPCL’s Solar Park, Khavda, Gujarat
- Project Value: ₹1,311.40 crore
- Completion Timeline: November 2025
These strategic partnerships and large-scale projects position KPI Green Energy as a dominant player in India’s renewable energy sector.
Bonus History – Rewarding Shareholders
The company has been generous in rewarding its shareholders, announcing three bonus issues in the last two years:
- January 18, 2023 – Bonus Issue (1:1)
- February 15, 2024 – Bonus Issue (1:2)
- January 3, 2025 – Bonus Issue (1:2)
This frequent bonus history showcases strong confidence in future earnings growth and enhances shareholder value.
Key Financial Ratios & Valuation
Here’s how KPI Green Energy fares across important financial metrics:
| Metric | Value |
|---|---|
| Stock P/E | 29.2 |
| Book Value | ₹99.8 |
| Dividend Yield | 0.12% |
| ROCE (Return on Capital Employed) | 21.6% |
| ROE (Return on Equity) | 29.6% |
| Debt-to-Equity Ratio | 0.24 |
| Price-to-Earnings Ratio | 29.2 |
| Pledged Percentage | 45.5% |
| Quarterly Profit Growth (QoQ) | 21.8% |
| Annual Profit Growth (YoY) | 67.0% |
| Industry P/E | 29.2 |
| Graham Number | ₹177 |
| Intrinsic Value | ₹566 |
| RSI (Relative Strength Index) | 44.8 |
| Earnings Per Share (EPS) | ₹13.9 |
| Number of Equity Shares | 19.7 Cr |
| PEG Ratio | 0.29 |
| 200-Day Moving Average (DMA) | ₹494 |
| 3-Year Free Cash Flow | ₹-483 Cr |
| Current Free Cash Flow | ₹-244 Cr |
The company’s ROCE of 21.6% and ROE of 29.6% indicate strong profitability. However, a pledged promoter holding of 45.5% and negative free cash flow suggest potential risks that investors should monitor.
Should You Add KPI Green Energy to Your Watchlist?
KPI Green Energy presents a compelling investment opportunity due to: ✔ Strong revenue and profit growth
✔ Expanding project pipeline
✔ Government-backed renewable energy projects
✔ Aggressive capacity expansion plans
✔ Attractive valuations with an intrinsic value of ₹566
However, investors should be mindful of market volatility, pledged promoter holdings, and free cash flow concerns before making any investment decisions.
Final Thoughts
With the green energy sector poised for exponential growth, KPI Green Energy stands out as a potential multibagger stock. Trading at a 46% discount from its peak, this small-cap company is worth tracking for investors seeking exposure to India’s renewable energy revolution.
👉 Would you invest in KPI Green Energy? Let us know in the comments!
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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.