Despite receiving new orders, the shares of this solar energy company declined, will the shares give further profits? know

Shares of Insolation Energy Limited Decline Despite New Orders

Insolation Energy Limited (INA) experienced a 5.3% drop in share prices, trading at ₹3,358, despite securing a significant order. The company’s subsidiary, Insolation Green Energy Pvt Ltd, has received a ₹208.31 crore contract from Zetwork Manufacturing Business Pvt Ltd to supply 550 Wp Solar PV modules for the NTPC Khawada site in Gujarat, slated for completion in the 2024-25 financial year.

New Orders and Corporate Actions

INA is recognized for its diverse solar solutions, including solar modules and power conditioning units. Recently, the company also secured a ₹30.54 crore order from Rays Green Energy Manufacturing for additional solar modules. Furthermore, the company plans to issue 12,23,500 shares at ₹3,287 each to raise ₹402.2 crore through non-promoter investments.

Company’s Financial Performance

INA reported a remarkable 164.2% revenue growth for FY24, increasing from ₹279 crore to ₹737 crore. The net profit surged by 400% year-on-year, reaching ₹55 crore. With a return on equity (RoE) of 68.5% and a net profit margin of 7.52%, the company has emerged as a strong player in India’s solar market.

Company’s Expansion Plans and Future Projections

Looking ahead, INA aims to ramp up its solar module production capacity to 4GW by FY25, alongside expanding its cell manufacturing capacity. The company projects revenues exceeding $1 billion and targets profit margins above 10% in the coming years.