Surat : KP Group Shines in Solar Energy Stocks Ranking by Trade Brains

Surat : Surat-based KP Green Energy and KP Energy, subsidiaries of the KP Group, have secured the second and third positions respectively in the latest solar energy stocks analysis by Trade Brains, a leading Indian stock market research website. This recognition highlights the growing prominence of the KP Group, promoted by Dr. Faruk G Patel, within the renewable energy sector.

The global demand for clean energy solutions is on the rise, with solar power taking center stage. KP Green Energy, established in 2008, caters to this demand by developing, constructing, and maintaining renewable energy plants (IPP) and offering services to captive power producers (CPP). The company boasts a strong presence across 32 locations in Gujarat.

Impressive Growth Trajectory

KP Green Energy stands out with its significant land holdings, exceeding 1868 acres (owned and leased combined). The company’s impressive capacity includes 380+ MW of cumulative power generation and a remarkable 1428 MW of cumulative power evacuation capacity. To ensure peak efficiency, they utilize cutting-edge bifacial glass-to-glass solar panels. Additionally, they leverage a Content Management System (CMS) for performance monitoring, analysis, and optimization. Recognizing the potential of automation, KP Green Energy is actively investing in developing waterless cleaning robots. They have also implemented SAP for comprehensive management of critical activities.

The company’s financial performance reflects this dedication to innovation. Revenue from operations surged from ₹230 crore in FY 2022 to ₹644 crore in FY 2023, signifying a remarkable 180% year-on-year growth. Net profit also witnessed a significant jump, rising from ₹43 crore to ₹110 crore in the same period. This growth is further solidified by strong Return on Equity (ROE) and Return on Capital Employed (ROCE) figures. The average ROE for the past three years stands at a healthy 35%, while the average ROCE sits at 20.01%. As of September 2023, promoters hold a majority stake (54.83%) with a minor presence of foreign institutional investors (1.86%).

KP Energy: A Leader in Wind Power

KP Energy, another subsidiary of the KP Group, is a prominent player in the wind energy sector. Their expertise encompasses the entire wind farm development process, from initial conceptualization to project commissioning. With a focus on Gujarat, they have established themselves as the leading Balance of Plant (BoP) solutions provider for wind and solar hybrid projects. Their current capacity stands at a robust 758.1 MW, including CTU and STU projects.

KP Energy’s success hinges on a well-defined business model with three core segments: Engineering, Procurement, Construction, and Commissioning (EPCC); Independent Power Producers (IPP); and Operations & Maintenance (O&M). Their services include site identification and acquisition, site preparation, construction and erection, and ongoing maintenance.

The company’s financial performance aligns with KP Green Energy’s positive trajectory. Revenue from operations witnessed a 73% YoY growth, increasing from ₹250 crore in FY 2022 to ₹434 crore in FY 2023. Similarly, net profit climbed from ₹21 crore to ₹44 crore during the same period. The average ROE for the past three years is a commendable 24.76%, while the average ROCE stands at 21.57%. Promoter holding remains significant at 44.8%, with a minimal presence of foreign institutional investors (0.26%).