Solar stock with ₹8,000 Cr revenue guidance & ₹1,800 Cr CAPEX plans to keep on your radar

Shares of this small-cap company, involved in manufacturing solar panels and modules, are attracting attention following the management’s revenue guidance of over Rs.8,000 crore in the coming years. The focus is further heightened by the allotment of 45 acres (approximately 1,82,108.5 square meters) of land in the Madhya Pradesh Zone for Power and Renewable Energy Equipment. 

Price Movement 

During Friday’s trading session, Insolation Energy Ltd’s share price reached an intraday high of Rs.3,830.00 per share, rising 2.2 percent from its previous closing price of Rs.3,749.95 apiece. The share has since retreated and is trading at Rs.3,803.60 each. Over the past five years, the shares have delivered over 3,800 percent returns. 

What happened 

The Board of Directors of Insolation Green Energy Private Limited, a wholly owned subsidiary of Insolation Energy Limited, has approved the proposal from the Government of Madhya Pradesh, as per the Letter of Intent (LOI) dated December 7, 2024. 

The proposal involves the allotment of 45 acres (approximately 1,82,108.5 square meters) of land in the Madhya Pradesh Zone for Power and Renewable Energy Equipment, situated in Mohasa, Babai, District Narmadapuram. 

This land will be used to establish a manufacturing facility for Solar PV Modules, Solar Cells, and Aluminum Frames. The allotment includes several benefits, such as a one-time lease premium of Rs.1 per square meter, an annual lease rent and development charge of Rs.21 per square meter, and a capital incentive subsidy of up to 40 percent for capital expenditure. 

Additionally, subsidies are provided for employment generation and exports as per the MP Government’s industrial policy. The government will also provide electricity at a fixed rate of Rs.4.36 per unit and water supply at Rs.25 per kiloliter. 

Capacity Expansion Plans 

The company is poised to achieve its $1 billion revenue target with the development of its fourth manufacturing facility, set to enhance its renewable energy capabilities. The new facility will have a capacity of 3 GW for Solar Cell Manufacturing, 4 GW for Solar Module Manufacturing, and 24,000 MT for Aluminum Frame Manufacturing. 

This expansion will be implemented in two phases, significantly strengthening the company’s position in the renewable energy sector. The total investment for this project is approximately Rs.1,800 Crore, and it is expected to create over 1,600 direct and indirect jobs, boosting regional growth. 

This will be the company’s fourth facility and its first outside Rajasthan. In addition, the company recently completed a preferential allotment of Rs.400 Crore and is in full swing with the setup of its third manufacturing facility, which will increase Solar Module production from 1 GW to 4 GW by April 2025, along with a 12,000 MT Aluminum Frame manufacturing facility.

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Financials 

According to its recent financial updates, Insolation Energy Ltd reported remarkable consolidated revenue of Rs.612 crores in Q2 FY25, marking a 120 percent increase from Rs.278 crores in Q2 FY24. In addition, the company saw its net profit rise exceptionally by 408 percent to Rs.61 crores, compared to Rs.15 crores in the same period last year. 

Shareholding Pattern 

As per the shareholding pattern for September 2024, the promoters of Insolation Energy Ltd. hold a 70.04 percent stake, while Foreign Institutional Investors (FIIs) own 0.59 percent. Retail investors hold 29.37 percent of the company’s shares. 

About the Company 

Insolation Energy Ltd., founded in 2015 and headquartered in Jaipur, India, specializes in the production of high-efficiency solar panels and modules. The company operates a cutting-edge facility with an existing capacity of 200 MW, with plans to expand to 1.2 GW by 2026. Insolation Energy is distinguished as the first solar panel manufacturer listed on the BSE SME platform and holds the title of the largest solar panel producer in Rajasthan. 

Written by – Siddesh S Raskar 

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