Solar power being weighed in gold in stock markets

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By S Jha

New Delhi, October 8: Prime Minister Narendra Modi will declare village Modhera in Gujarat as India’s first 24×7 solar powered village. Solar power is fast becoming India’s new sensation, with race to become power self-sufficient being seen among households, plants and small habitations.

Modhera in Gujarat is first of its kind project, which involved developing a ground-mounted solar power plant and more than 1300 rooftop solar systems on residential and government buildings, which are all integrated with Battery Energy storage system (BESS).

“The project will demonstrate how India’s renewable energy prowess can empower people at grassroots,” said the government in a statement on Saturday.

On the stock markets, the solar power theme is running in full steam, with scrips touching high prices. KP Green Energy has been tracked by The Raisina Hills earlier, which since onboarding on the NSE and BSE from the SME platform has zoomed from sub 100 level to Rs 900 and above in a short span of time. This company is a solar power player.

Another solar power company has a phenomenal run on the bourses, while being a very small player, but financials suggest that it’s breaking out in a big league.

Waeree Renewable Technologies Limited has been in the business since 1999 and is engaged in renewable sources of energy. It also provides consultancy in the renewable sources of energy.

The market cap of this company is Rs 981 crores. On October 11 last year, almost about a year ago, Waeree Renewable Technologies Limited was trading at a price of Rs 182 per share. On Friday, it closed at Rs 471, making a sweet gain of almost 200 per cent in about a year. It’s peak is Rs 513.

In the June quarter, this company made a net profit of Rs 9.93 crores against Rs 6.79 crores in the March quarter. It had clocked sales of Rs 95 crores in the June quarter against Rs 76.66 crores in the March quarter this year. The company is almost debt free, as its interest outgo in the June quarter was Rs one crore only.

Promoters hold about 75 per cent shares of the company, while rest is with the public. The company is maintaining a return on equity of 33.6 per cent, while the return on capital employed is 26.4 per cent.

(Disclaimer: The article doesn’t make any sale or purchase suggestion, and investors must consult SEBI registered investment advisors for making any equity decision)

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