1. Renewable power generating company in Gujarat
Generates and supply power as an IPP and CPP
kpigreenenergy.com | NSE: KPIGREEN
2. FY17-23: Revenue CAGR of 71% & PAT CAGR of 65%
FY20-23: 10.9X Revenue & 17X PAT
3. Strong Q1-24: PAT up 50% & Revenue up 55% YoY
4. Strong Q2-24: PAT up 64% & Revenue up 35% YoY
5. Overall H1-24 looking strong: PAT up 57% & Revenue up 44%
In comparison the H1 of FY22-23
the consolidated CPP Sales of H1 of FY23-24, grew 35% from INR 245.54 Crs to INR 330.87 Crs (H1 FY23-24)
while that under the Independent Power Producer (IPP) grew by 99% from INR 36.47 Crs to INR 72.38 Crs.
6. FY24 return ratios expected to be better than FY23
7. Outlook: Strong order visibility
i. Orders in had: 541 MW as of Q2-24 vs 144 MW as of Q1-24 end
8. 44% revenue growth & 57% PAT growth in H1-24 for a PE of less than 25
9. So Wait and Watch
If I hold the stock then one may continue holding on to KPIGREEN given the momentum from FY23 has continued on into H1-24 end. Additionally, the momentum is expected to continue into H2-24
The execution is in place given the 44% growth in top-line and 57% growth in PAT for H1-24.
44% growth in top-line and 57% growth is in-line with the 50-60% volume growth in MW talked about in Q1-24 earnings call (Read more)
There is a roadmap for growth given that the orders in hand have ballooned to 500+ MW as of Q2-24 end against the 100+ MW orders in hand as of end of Q1-24 and FY23 end.
10. Or, join the ride
If I am looking to enter the stock then
KPIGREEN has delivered 44% growth in top-line and 57% growth in PAT for H1-24 at a PE of less than 25 which makes the valuations quite attractive.
Outlook for H2-24 is expected to be as good as the performance in H1-24 given the 500+ MW of orders in hand.
Previous coverage of KPIGREEN
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Disclaimer
It is an analysis of the company data and not a stock recommendation
My analysis can be completely wrong and can change the next minute based on changes in my understanding of the company
I look to own good companies at prices where there is a path to market beating returns over decades