The shares of one of the leading Infrastructure stocks, specialising in providing engineering, procurement, and construction (EPC) services, hit a 5 percent lower circuit after PFC filed a complaint with the Economic Offences Wing (EOW) against the company.
Price action
With a market capitalization of Rs. 383.06 crores on Wednesday, the shares of Gensol Engineering Limited hit a 5 percent lower circuit, making a low of Rs. 100.80 per share compared to its previous closing price of Rs. 106.10 per share.
Gensol Engineering Limited, engaged in providing engineering, procurement, and construction (EPC) services, is in focus as Power Finance Corporation Ltd (PFC), a government-run NBFC, has filed a complaint with the Economic Offences Wing (EoW) of Delhi Police against Gensol Engineering Ltd for allegedly submitting falsified documents.
The company is accused of forging letters from PFC and IREDA to falsely indicate timely debt repayments, which were discovered during verification by credit rating agencies. PFC is also reviewing the matter internally under its anti-fraud policy. This marks the fourth investigation into Gensol and its EV arm, BluSmart, with ongoing probes by SEBI, the Ministry of Corporate Affairs, and the Enforcement Directorate.
Gensol Engineering has a strong foundation in technical advisory services and has grown significantly over the years. The company currently boasts over 33,693 MW+ in its portfolio. In the trailing twelve months (TTM), it has reported a total revenue of Rs. 1,477 Crore and has an unexecuted order pipeline worth Rs. 3,400 Crore.
The company also has contracts worth over Rs. 2,000 Crore under award and a total renewable revenue visibility exceeding Rs. 8,300 Crore.
Business segment
Gensol’s 73.82 percent of operating revenue is from Solar EPC, 26.12 percent from Lease, and the remaining 0.05 percent from Others for the December 2024 quarter. The Operating profit for Solar EPC, despite an increase in revenue growth year on year, the profits declined. Further, Leasing turned profitable from a loss in the same period.
Order Book & Fleet
The unexecuted order book as of 31st December 2024 stood at around Rs. 7,000 crore for the Solar Segment. They have more than 8,300 EVs on lease.