Gensol Engineering Stock Slumps 31% from Peak: What Rajesh Bhosale and Angel One Recommend for Investors Today

Gensol Engineering, a multibagger stock, has seen its share price fall by over 31% from its all-time high of ₹1,377.10, which it reached on February 20, 2024. Despite this drop, the stock has still gained 61.32% over the past year, though it has underperformed compared to its sector, trailing by 8.7%. As of today, Gensol Engineering’s share price opened at ₹953.95 on the BSE, hitting an intraday high of ₹958.45 and a low of ₹938.

Equity Technical and Derivative Analyst

Rajesh Bhosale, an Equity Technical and Derivative Analyst at Angel One, notes that Gensol Engineering’s stock has not kept pace with the broader market. While the midcap index is at new highs, Gensol is trading near its 200-day Simple Moving Average (SMA). The current price is hovering around a key support level of ₹910, and a drop below this could lead to more selling. On the upside, there is strong resistance between ₹980 and ₹1,000. Only a move above this range could create positive momentum for the stock.

Gensol Engineering has shown impressive growth over the past three years, with its stock price increasing by 4,437.4%. The company debuted on the BSE SME on October 15, 2019, with an offering price of ₹81 to ₹83 per share. The stock was listed at ₹85.4 per share, with a minimum lot size of 1,600 shares, requiring an initial investment of ₹132,800 for retail investors.

Gensol Engineering is a significant player in the renewable energy sector, specializing in solar power engineering, procurement, and construction (EPC) services, as well as electric mobility solutions.

Order Book Update

Gensol Engineering has continued to secure new orders, reinforcing its position in the renewable energy industry. Recently, the company won a Letter of Award (LOA) for a 16 MWp turnkey EPC rooftop solar project worth ₹40 crore from a leading textile company. This project, located in Madhya Pradesh, is expected to be completed within six months.

Gujarat Urja Vikas Nigam Limited (GUVNL)

In addition, Gujarat Urja Vikas Nigam Limited (GUVNL) awarded Gensol Engineering the second tranche of a 250 MW/500 MWh Battery Energy Storage Systems (BESS) project, increasing the total capacity to 500 MW/1000 MWh. The combined project is expected to generate ₹2,685 crore in revenue over the course of a 12-year Battery Energy Storage Purchase Agreement (BESPA).

Gensol’s revenues have grown significantly, reaching ₹275 crore from ₹147 crore in the same period last year.

For the quarter ending June 2024, Gensol Engineering reported a more than two-fold increase in its standalone profit after tax (PAT) to ₹32.5 crore, driven by higher revenues. This compares to a PAT of ₹12.3 crore in the same quarter of the previous fiscal year.

Anmol Singh Jaggi, the Managing Director and Chairman of Gensol Engineering, stated that the company delivered exceptional performance in the first quarter of FY25. Gensol is expanding its presence in existing and emerging markets, including solar, battery energy storage systems (BESS), and electric vehicle leasing. These sectors are expected to experience rapid growth in the near future, which should enhance the company’s overall profitability.