Ujaas Energy Ltd experienced a significant surge in its share price on Monday, August 12, 2024. Despite facing trading restrictions imposed due to insolvency and restructuring proceedings (IBC), the stock climbed by 5 per cent, reaching a new 52-week high of Rs 438.25 per share. This sharp increase stands in stark contrast to its 52-week low of just Rs 2 per share, highlighting the stock’s extreme volatility. The shares of the company have a PE of 100x and an ROE of 56 per cent.
Ujaas Energy Ltd, established in 1999, is a solar power company involved in generating, selling, and servicing solar power plants. It operates under the “UJAAS” brand, developing, owning, and maintaining solar energy power plants. The company offers engineering, procurement, construction, solar park, and rooftop solutions, along with operations and maintenance services. With an installed capacity of approximately 14 MW and over 235 MW of solar power plants set up, Ujaas Energy provides various solar power solutions through its Ujaas Park, Ujaas My Site, and Ujaas Home platforms. Additionally, the company manufactures transformers and has ventured into the electric two-wheeler market with its E-Spa brand.
Ujaas Energy Ltd proposes a bonus share in the ratio 1:4 i.e., issue of one new fully paid-up Re. 1 equity share for every four existing fully paid-up Re. 1 equity shares held by public shareholders (excluding promoters) as on the record date, subject to shareholder approval at the upcoming AGM. This bonus issue, to be funded by utilizing share premium and free reserves, will increase the authorized share capital from Rs 30 crore to Rs 45 crore. Additionally, the company seeks shareholder approval for fundraising through FPO, ADR, GDR, QIP, or right issue up to Rs 500 crore at the ensuing AGM.
According to Quarterly Results, the company reported net sales of Rs 6.29 crore in Q1FY25 while the company reported a net profit of Rs 3.82 crore in Q1FY25 compared to a net loss of Rs 5.86 crore in Q1FY24, an increase of 165 per cent. In its annual results, the company reported net sales of Rs 27 crore and net profit of Rs 29 crore in FY24.
The company has a market cap of Rs 4,614.83 crore and has delivered good profit growth of 42.9 per cent CAGR over the last 5 years. The stock gave multibagger returns of over 21,000 per cent from its 52-week low of Rs 2 per share. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.