Synopsis: Small-cap stock has secured three domestic EPC contracts for solar power projects with integrated battery storage in Rajasthan, covering end-to-end execution and long-term operations and maintenance services.
The shares of this small-cap company is majorly engaged in two main business verticals providing EPC and operations of solar power projects, and offering solar energy solutions on a BOOT, jumped upto 6 percent after bagging solar EPC projects.
With the market capitalization of Rs. 3,551 Crores, the shares of Oriana Power Ltd reached an intraday high of Rs. 1,754 per share raising nearly 6 percent from its previous day close of Rs. 1656 per share and is trading at a P/E of 15.4 where as industry P/E stands at 23.2
About the order:
Oriana Power Limited has been awarded three separate fixed price work orders for the execution of ground-mounted solar power plants with a total capacity of 32 MW. The projects are unique as the solar power plants will incorporate 20 MWh Battery Energy Storage Systems (BESS).
The capacity for the Kesari Alloys Private Limited project is 16 MW with 10 MWh BESS, and the EPC cost for the project is Rs. 74.34 Crore. The capacity for the projects undertaken by Ramayna Ispat Private Limited and Duggar Fiber Private Limited is 8 MW each, with 5 MWh BESS for both projects. The cost for both projects is Rs. 44.17. The projects are located in Jodhpur, Rajasthan, and the scope for the domestic projects is comprehensive.
The financial implications of the agreement involve a total cost for EPC, which amounts to Rs. 162 Crores, along with an additional Rs. 1 Crore for Operation and Maintenance (O&M) services, which will be for a period of 2 years from the date of commissioning. All the above-mentioned figures are exclusive of GST. The company assured that these contracts were entered into with domestic private players, and there are no related party transactions or interest from the promoter group.
About the company and financials:
Oriana Power Ltd is mainly involved in two major business segments: EPC and operation of solar power projects and providing solar energy solutions on a BOOT model. The company has successfully executed projects of over 575 MW. The company has over 12 years of experience and has established itself with an operational track record of having executed over 575 MW of projects. Currently, they have over 550 MW of projects under execution. Additionally, they have successfully acquired over 3,500 acres of land for their projects. Looking ahead, they have set their eyes on a huge target of achieving 1+ GW of capacity in renewable energy by 2026.
The company has an equally huge order pipeline of over 2,000 MW of solar power capacity and an allocation of 60,000 MTPA for Green Ammonia. The company is also very focused on energy storage solutions and has successfully executed over 800 MWh of Battery Energy Storage System (BESS) projects. Additionally, they have an order pipeline of 2,000+ MWh of BESS capacity.
Year on Year analysis: Revenue from operations has increased from Rs. 360 crores to Rs. 781 Crores, up 117 percent. Operating profit has increased from Rs. 75 Crores to Rs. 180 Crores, up 140 percent and net profit has increased from Rs. 49 Crores to Rs. 122 Crores, up 149 percent
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