Gensol Engineering shares rise after bagging NHPC project

Shares of Gensol Engineering Ltd gained on Thursday after the company announced to emerge as the lowest bidder for NHPC's project. The company informed about the same through an exchange filing during the market hours on Thursday.

Gensol Engineering (Gensol) is the successful lowest bidder for the engineering, procurement and commissioning (EPC) of a trailblazing Green Hydrogen-based mobility station in Kargil, Ladakh, said the company in the exchange filing with the bourses. This initiative is in line with the government's ambitious targets for green hydrogen energy.

Gensol has secured this project by demonstrating the techno-commercial competency in collaboration with Matrix Gas & Renewables (Matrix). The project is to be commissioned by the National Hydroelectric Power Corporation (NHPC Ltd), which is aimed at operating buses powered by hydrogen fuel cells within the region.

Following the announcement, shares of Gensol surged more than 3 per cent to Rs 830 on Thursday, commanding a total market capitalization close to Rs 3,100 crore. The scrip had settled at Rs 806.10 in previous trading session on Wednesday. The scrip has delivered a return of more than 225 per cent from its 52-week low at Rs 255.42.

Gensol is set to develop a 500-kW grid-connected, ground-mounted solar power project that will provide energy to the hydrogen refueling station. Matrix will oversee the engineering, procurement and commissioning of dual electrolysers, each with a capacity of 30 NM3.

This project spans the complete green hydrogen supply chain. Gensol pledges to execute the project for NHPC, ensuring a minimum green hydrogen purity of 99.97 per cent, with the project slated for completion within 12 months from the issuance of the work order.

In the September 2023 quarter, Gensol Engineering reported a 51 per cent rise year-on-year (YoY) in the net profit at Rs 11.92 crore with a 145 per cent rise in the revenue from operations to Rs 199.43 crore in the second quarter. The stock had traded ex-bonus in a 2:1 ratio in October 2023.

Founded in 2012, Gensol offers engineering, procurement, and construction (EPC) services for the development of solar power plants. It has successfully installed solar power plants with combined operations, and has also established a cutting-edge electric vehicle (EV) manufacturing facility in Pune, India.

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