Synopsis:
KKV Agro Power is in focus after its management has announced the issuance of a bonus issue in the ratio 1:10.
The shares of this Wind and Solar power renewable energy generation company are in focus after its board announced the issuance of bonus shares. In this article, we will delve into the details further.
With a market capitalization of Rs 37.7 crores, the shares of KKV Agro Powers Ltd are currently trading at Rs 665 per share, down by 38 percent from its 52-week high of Rs 1,072.70 per share. Over the past five years, the stock has delivered a positive return of 148 percent.
KKV Agro Powers, through a stock exchange filing, announced that the company has recommended the issuance of bonus shares in the ratio of 1:10. This means for every 10 shares you already own, you will get 1 additional share free of cost. For Example, if you hold 100 shares, you will receive 10 bonus shares. So, your total holding will become 110 shares, without paying anything extra.
These new shares will be issued from the company’s Securities Premium Account, but the bonus is subject to shareholder and regulatory approvals, and will announce the record date accordingly.
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Financial Highlights
The company reported a revenue of Rs 962 crore in FY25, down by 38 percent from its FY24 revenue of Rs 1,554 crore. Coming to its profitability, the company reported a net profit growth of 525 percent to Rs 1.69 crore in FY25 from Rs 27 lakhs in FY24.
The stock delivered a poor ROE and ROCE of 7.85 percent and 10.86 percent respectively, and is currently trading at a P/E of 22.31x as compared to its industry average of 30.11x.
KKV Agro Power Ltd is a company dedicated to renewable energy, specializing in harnessing power from wind and solar sources. It operates under the Group Captive Power Scheme under the Electricity Act of 2003. The company is already running several wind and solar projects and is on a mission to expand its capacity, especially in Tamil Nadu, by acquiring more wind energy assets.
Written by Satyajeet Mukherjee
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