Gensol Engineering Stock Jumps 16% from Day’s Low– Growth and Future in Solar & EV Sector
Business and Industry Overview:
Gensol Engineering Limited started in 2012. It is the main company of the Gensol Group. It provides engineering, procurement, and construction (EPC) services for solar power projects. The company has a strong team of over 240 professionals. It has successfully completed many projects worldwide. Gensol has installed more than 700 MW of solar power, including both ground-mounted and rooftop projects. Apart from solar, Gensol has entered the electric vehicle (EV) sector. It has built a modern EV manufacturing facility in Pune, India. This facility makes electric three-wheelers and four-wheelers. The EVs have received approval from the Automotive Research Association of India (ARAI). Gensol does not just manufacture EVs but also offers leasing solutions. It provides EV leasing to many clients, including government bodies, multinational corporations, ride-hailing companies, logistics firms, educational institutions, and last-mile delivery services. To strengthen its renewable energy business, Gensol has acquired Scorpius Trackers. This company designs and develops advanced solar tracking systems. These systems improve the efficiency of solar power generation. Gensol is also a major player in the solar operations and maintenance (O&M) sector. It has important clients like Delhi International Airport, Suzlon, Greenko, and Essel Infra. With expertise in both solar and EVs, Gensol is expanding its business and playing a key role in clean energy and electric mobility.
The solar power and electric vehicle (EV) industries are growing very fast. Many countries want to reduce pollution and use clean energy. Governments are giving support like subsidies, tax benefits, and low-interest loans to help these industries grow. Many businesses are using solar energy because it helps them save money on electricity bills. Solar panels are improving with new technology, making them work better and last longer. The demand for solar EPC (engineering, procurement, and construction) services and operations and maintenance (O&M) services is also increasing. More companies are building solar power plants and rooftop solar projects to reduce costs and meet clean energy goals.
The EV industry is also growing because people and businesses want vehicles that do not need petrol or diesel. The government has introduced schemes like FAME (Faster Adoption and Manufacturing of Electric Vehicles) to help people buy EVs at lower prices. The demand for electric three-wheelers and four-wheelers is rising because they are cheaper to run and require less maintenance. Many companies, including ride-hailing services, delivery companies, and transport businesses, are choosing EVs for daily use. The EV leasing market is also growing because businesses prefer leasing instead of buying new vehicles. More charging stations are being built, but there are still challenges. The high cost of EVs, fewer charging points, and battery limitations are problems that need solutions. However, with more investment in solar and EV technology, both industries will grow bigger in the future.
Latest Stock News:
Gensol Engineering Limited’s stock has been under pressure, falling 40% in the last three sessions. In the previous trading session, the stock hit a 52-week low of ₹335.35 on the BSE, reaching the lower circuit of 10%. The company’s market capitalization slipped to ₹1,274.41 crore, with a total turnover of ₹83.25 lakh on the exchange. Today, the stock is trading at ₹341.70, up 2.06%, after touching a new 52-week low of ₹307.25 earlier in the session.
The sharp decline in stock price follows the resignation of CFO Ankit Jain, effective March 6, 2025. To manage the transition, the company has re-appointed Jabirmahendi Aga as CFO, who has 14 years of financial experience and has previously served in the same role. The company’s Chairman and Managing Director, Anmol Singh Jaggi, acknowledged the firm is facing challenges and expressed confidence in Aga’s ability to steer the company through this period.
Potentials:
Gensol Engineering has a good future because it works in solar power and electric vehicles (EVs), which are growing fast. The company is building more solar projects because many people and businesses want clean energy. It has also bought Scorpius Trackers, a company that makes solar panels work better by following the sun. Gensol also takes care of solar plants to keep them running well for a long time.
The company is also making electric three-wheelers and four-wheelers in Pune. Many businesses want EVs because they cost less to run than petrol or diesel vehicles. Gensol helps companies by giving them EVs on rent, so they do not have to spend a lot of money to buy them.
Gensol is also working on battery storage and green hydrogen. Battery storage helps save extra solar power for later use. Green hydrogen is a clean fuel that factories may use in the future. These projects will help Gensol grow more.
The government is helping solar power and EVs by giving discounts and support. More people and businesses are using solar energy and EVs because they save money and are good for nature. With new technology, more business, and government help, Gensol can grow a lot in the future.
Analyst Insights:
- Market capitalisation: ₹ 1,221 Cr.
- Current Price: ₹ 321
- 52-Week High/Low: ₹ 1,126 / 302
- P/E Ratio: 14.1
- Dividend Yield: 0.00 %
- Return on Capital Employed (ROCE): 14.3 %
- Return on Equity (ROE): 20.1 %
Gensol Engineering has grown fast in the last few years. Its sales increased by 147% in 3 years, and profit grew by 156% in the same period. But the stock price has fallen 67% in one year. The company has taken high loans, with borrowings rising from ₹82 crore in 2022 to ₹1,510 crore in 2024. Owners have pledged 81.7% of their shares, which is risky. The company is making profits, with a 20% return on equity, but it does not pay dividends. It is expanding in renewable energy, battery storage, and electric vehicles. The business has good future potential, but the stock is risky. Investors should be careful and invest only if they can handle risk.