Smallcap stock with 2,94,000 MTPA production capacity & strong orderbook to add to your watchlist

The shares of a small-cap engineering company, a leading manufacturer of fabricated and hot-dip galvanized steel products offering end-to-end solutions in engineering, design, fabrication, and galvanization, with an ambitious capex plan to keep in your radar. 

Price Action 

The shares of KP Green Engineering Ltd,  with a total market capitalization of Rs 2,052.25 Crore on Friday, closed at Rs 410.45 per share, which was 3.8 percent lower than the previous closing of Rs 426.75. The shares have generated a return of 38 percent since its listing in March 2024.  

Order Book

As of January 1, 2025, the company’s balance order book remained strong at Rs. 402.67 crore, ensuring near-term revenue visibility. Of this, approximately Rs. 208 crore worth of orders are set to be executed by March 2025, while the remaining Rs. 195 crore will be completed after March 2025. Most of the company’s orders are short-term, with execution expected within a maximum of six months.

Capex Plan

The company is expanding its capacity by setting up a new manufacturing facility in Gujarat with a capacity of 2,94,000 MTPA, a significant increase from the current 53,000 MTPA. It is set to become fully operational in April 2025. The facility will produce new product lines, including high mast and lighting poles, floor gratings, pre-engineered buildings, transmission monopoles, heavy transmission lattice towers, and windmill tubular towers.

 It will also serve the road and rail infrastructure sectors, complementing its existing focus on renewable energy, transmission, and telecom. This expansion is expected to drive the company’s future revenue growth.

Also read: ₹1,800 Cr Acquisition: Smallcap stock turns 5th largest cement firm after acquiring Vadraj Cement

Financials 

The company’s revenue from operations grew by 152 percent YoY from Rs 103.9 Crore in H1FY24 to Rs 262.4 Crore in H1FY25. On the operating level, their EBITDA grew by 147 percent YoY from Rs 17.75 Crore to Rs 43.8 Crore over the same period. The company’s PAT saw a growth of 150 percent YoY from Rs 11.05 Crore to Rs 27.62 Crore.   

Product Portfolio

The company’s product portfolio includes Lattice Towers, Substation Structures, Solar Module Mounting Structures, Cable Tray & Earthing Material, Transmission Line Towers, Optical Fiber Fault Rectification, Metal Beam Crash Barrier, Galvanization Job Work, and more. 

About KP Green Engineering Ltd 

KP Green Engineering Ltd is a leading manufacturer of fabricated and hot-dip galvanized steel products, incorporated in July 2001. The company offers comprehensive solutions that encompass engineering, design, fabrication, and hot-dip galvanization, allowing for custom-made products tailored to client specifications.  The company serves across various industries like Renewables, Power and transmission, Telecom, Railways, Urban Infrastructure, and Construction. 

Written By Adhvaitha Nayani

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