Microcap stock jumps 5% after incorporating new subsidiary and expanding business in Zambia

A micro-cap wind and solar company has announced the incorporation of a new foreign subsidiary in Lusaka, Zambia. This strategic move aims to expand its global presence and explore new growth opportunities in renewable energy markets.

Share Price Movement 

During Tuesday’s trading session, Winsol Engineers Ltd’s share price hit an intraday high of Rs.202.00 apiece, rising 4.5 percent from the previous close of Rs.193.30 apiece. The share has since retreated and is currently trading at Rs.196.95 per share. 

What Happened

Winsol Engineers has incorporated a new foreign subsidiary, Winsol Engineers Zambia Limited, in Lusaka, Zambia. This subsidiary will primarily focus on electric power generation, transmission, and distribution, as well as the manufacturing of electric motors, generators, transformers, and electricity distribution and control apparatus. Additionally, it will engage in the retail sale of hardware, paints, and glass. The subsidiary’s nominal share capital is K 20,000, consisting of 20,000 shares valued at 1 Zambian Kwacha each. 

The incorporation of Winsol Engineers Zambia Limited is aligned with Winsol Engineers’ strategy to expand its business operations internationally, particularly in the electric power sector. The acquisition involves share subscription through cash consideration, with Winsol Engineers Limited acquiring a majority stake of 51% by subscribing to 10,200 shares at 1 Zambian Kwacha per share. 

Also read: PSU stock jumps 4% after RBI revises priority sector lending guidelines for Renewable Energy

Core Services

The company offers comprehensive engineering, procurement, construction, and commissioning services for renewable energy projects. It specializes in foundation work, substation civil and electrical services, and right-of-way solutions.

Financial Overview

According to its recent financial updates, Winsol Engineers Ltd reported consolidated revenue of Rs.42 crores in H1 FY25, marking a 27 percent increase from Rs.33 crores in H1  FY24. Similarly, the company saw a 50 percent incline in net profit to Rs.6 crores, compared to Rs.4 crores in the same period. 

Ratio Analysis

The company has a Return on Capital Employed (ROCE) of 28.54 percent and a Return on Equity (ROE) of 25.02 percent. Its Price-to-Earnings (P/E) ratio stands at 24.02, lower than the industry average of 34.6. Furthermore, the company maintains a solid current ratio of 5.41, a debt-to-equity ratio of 0.23, and an Earnings Per Share (EPS) of Rs.7.55. 

Business Overview

Founded in December 2015 and headquartered in Jamnagar, Gujarat, Winsol Engineers Limited is a fast-growing company that specializes in delivering integrated engineering, procurement, construction, and commissioning services. The company primarily focuses on providing Balance of Plant (BoP) solutions for renewable energy sectors, particularly solar and wind power generation.

Written by – Siddesh S Raskar

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Microcap stock jumps 5% after incorporating new subsidiary and expanding business in Zambia appeared first on Trade Brains.