In the past four years, KPI Green Energy’s stock has skyrocketed by more than 24,400%. Over the last three years, the stock surged 11,007%, going from ₹16.5 in May 2021 to much higher levels. In the past year, it jumped 468%, and it has risen 87.5% so far in 2024.
This year, the stock has given positive returns in four out of the five months. It increased by 1.5% in May after a 19% rise in April. However, it dropped by 12.5% in March. The stock was up 43.2% in February and 24.2% in January 2024.
About KPI Green Energy
KPI Green Energy Limited, based in Surat, India, generates and supplies solar power under the Solarism brand. The company develops, builds, owns, operates, and maintains solar power plants and sells land parcels. It was previously known as K.P.I. Global Infrastructure Limited until April 2022. The company was incorporated in 2008.
KPI Green Energy Earnings Report
For Q4 FY24, KPI Green Energy reported a significant rise in consolidated net profit to ₹25.8 crore from ₹8.66 crore a year ago. However, this was a drop from ₹40.77 crore in the December 2023 quarter. Revenue for the quarter increased by 76% year-on-year to ₹167.94 crore but fell 39% quarter-on-quarter from ₹275.18 crore in December.
KPI Green Energy Stock Split and Fundraising
On May 23, KPI Green Energy announced a stock split, dividing each ₹10 share into two ₹5 shares. This move aims to improve liquidity and make the shares more affordable for small investors.
The company also plans to raise up to ₹1,000 crore by issuing new equity shares or other equity-linked securities, subject to necessary approvals.
Brokerage Views On KPI Green Energy
ICICI Direct sees several strengths in KPI Green, such as strong quarterly growth, debt reduction efforts, and the ability to generate net cash. However, there are some concerns:
- Mutual Funds have reduced their shareholding recently.
- High Promoter Pledge.
Investing in small-cap stocks like KPI Green Energy offers significant potential gains due to lower stock prices but comes with higher risks. These stocks often have limited liquidity and less financial oversight, making them prone to price manipulation and fraud. As a result, they are more volatile, requiring thorough research and careful risk management to navigate the risks and mitigate potential losses.
ASM LT Stage 1 Monitoring
Currently, KPI Green Energy is under ASM LT Stage 1, a regulatory measure by stock exchanges to monitor and manage trading activities. ASM stands for Additional Surveillance Measure, LT means Long Term, and Stage 1 is the first level of this monitoring. These measures are to ensure market integrity and protect investors due to factors like unusual price movements and volatility.
Measures Under ASM LT Stage 1
When a stock is under ASM LT Stage 1, several actions may be taken:
- Increased Margins: Higher margins for trading the stock.
- Trade-to-Trade Settlement: All trades must be settled individually, with no intraday trading allowed.
- Price Band Changes: Tighter price bands to limit daily price movements.
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