KPI Green Energy: PAT growth of 100% & revenue growth of 75% in H1-25 at a PE of 48

Guidance of earnings CAGR of 45-50% for the next 2-3 years. H1-25 performance in line with guidance. Strong revenue visibility based on orders in hand at 4X of execution in FY24

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1. Renewable power generating company in Gujarat

kpigreenenergy.com | NSE: KPIGREEN

Business Segments

2. FY20-24: Revenue CAGR of 124% & PAT CAGR of 104%

3. Strong FY24: PAT up 48% & Revenue up 59% YoY

4. Strong Q2-25: PAT up 99% & Revenue up 83% YoY

PAT up 6% & Revenue up 3% QoQ

5. Strong H1-25: PAT up 100% & Revenue up 75% YoY

6. Business metrics: Strong return ratios

7. Outlook: Earnings CAGR of 45-50%

i. FY24-26: Earnings CAGR of 45-50%

The management is confident of growing the earnings by 45-50% CAGR over next 2-3 years.

ii. FY25: Strong revenue visibility - Order book at 552 MW

A very strong 62MW capacity energized in H1-25 compared to 133 MW in FY25. The visibility of the order book is 4 times the FY24 run-rate.

• FY24 closing order book: The current order book in rupee terms is estimated to be at Rs 3,500-3,700 cr which is ~3.5x of its FY24 sales thus offering healthy revenue visibility in medium terms.

8. PAT growth of 100% & revenue growth of 75% in H1-25 at a PE of 48

9. Hold?

If I hold the stock then one may continue holding on to KPIGREEN

• The strong business momentum of FY24 continues into an equally strong H1-25. KPIGREEN executed 133 MW in FY24. In H1-25 it has already installed 62MW. With H2 being significantly bigger than H1, one can see early indications of a strong FY25.

• Cumulative capacity till FY23: 312+ MW

• Installed Capacity till FY24: 445+ MW (IPP 158+ MW | CPP 287+ MW)

• Installed Capacity till H1-25: 507+ MW (IPP 171+ MW | CPP 336+ MW)

• The growth in H1-25 is in-line with the guidance of 45-50%

• Strong order book is providing confidence of a strong FY25 and providing revenue visibility and one can keep riding the business momentum as long as it lasts

10. Buy?

If I am looking to enter KPIGREEN then

• KPIGREEN has delivered PAT growth of 100% & Revenue growth of 75% in H1-25 at a PE of 48 which makes valuations fairly priced in the short term.

• The outlook for earnings CAGR of 45-50% for the next 2-3 years provides the opportunity in KPIGREEN at PE of 48.

• Strong revenue visibility based on orders at hand. Order book at 4X the FY24 execution. The order book creates confidence in the management outlook to deliver the growth in KPIGREEN.

• At a PE of 48 margin of safety is not high. One weak quarter and the impact would be clearly seen on the stock price. Strong execution is needed to sustain valuations

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Previous coverage of KPIGREEN

KPI Green Energy: PAT growth of 99% & revenue growth of 83% in Q1-25 at a PE of 66

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