KPI Green Energy, a powerpack renewable and wind power energy company, has finally decided to split its equity shares in the ratio of 1:2. Amidst the stock split announcement, KPI Green Energy shares dipped by nearly 6% on BSE in the trading week that ended on May 24th. KPI Green is trading currently at a little over Rs 1,860.
KPI Green Energy Share Price:
KPI Green shares ended at Rs 1862.15 apiece, on BSE with a downside of 1.8% on May 24, right after the stock split announcement. The company's market cap is around Rs 11,225.53 crore. Nonetheless, KPI Green is a multi-bagger despite the latest drop in its stock.
The stock's 52-week high is at Rs 2,109.25 apiece, while its 52-week low is at Rs 320.83 apiece.
From its 1-year low, the stock is trading higher by 480.4% at present. YTD, the stock has nearly doubled the returns with gains of 95.5%. While the six-monthly upside is a whopping 130%. And in a year, the stock rallied by 438%.
But in 5 years, KPI Green stock has given the most returns. The stock zoomed by a whopping 8,501.15% in this period on BSE. The stock was merely at Rs 21.65 apiece on BSE 5 years ago on May 31, 2019.
Example: If an investor let's suppose bought KPI Green shares for Rs 50,000 5 years ago, they now earn gains of up to Rs 42.50,575 taking their total corpus value to Rs 43,00,575 including the investment value. This is better returns than 5-year FD schemes interest rates.
KPI Green Energy Stock Split:
In its meeting on May 23, KPI Green Energy's board of directors considered, approved and recommended ordinary resolution through postal ballot for alteration of the capital of the Company by sub-division/split of existing equity share of the Company from One equity share having face value of Rs. 10/- (Rupees Ten only) each, fully paid-up, into 2 (Two) equity shares having a face value of Rs. 5/- (Rupees Five only) each, fully paid up.
Hence, a stock split ratio of 1:2.
However, KPI has also said that the record date for the above sub-division/split of Equity Shares shall be decided after obtaining approval of the shareholders through a postal ballot and will be intimated in due course.
Only those investors will be eligible for stock split ratio adjustments in their share price, who holds KPI Green stock by the end of the record date.
The reason behind KPI Green's stock split is to enhance the liquidity of the Company's equity shares and encourage the participation of small investors by making it more affordable.
KPI plans to fulfil its stock split corporate action by approximately 3 months from the date of receipt of approval from the shareholders of the Company.
Accordingly, the Authorised Share Capital of the Company is Rs. 70,00,00,000/- (Rupees Seventy Crore only) divided into 14,00,00,000 (Fourteen Crore) Equity Shares of Rs. 5/- (Rupees Five Only) each.
This will be KPI Green's first stock split, while the company is also scheduled to deliver a 2% dividend after a 1:2 bonus issue.
While the company has recommended a final dividend of 2% i.e. Re. 0.20 (Twenty Paisa only) per equity share of the face value of Rs.10/- each for the financial year 2023-24, subject to the approval of the Shareholders at the ensuing Annual General Meeting of the Company.
Apart from this, KPI has also received approval for fundraising up to Rs 1,000 crore through the issuance of equity shares of the Company ('Equity Shares') or any other equity-linked securities of the Company or other securities convertible into or exchangeable for Equity Shares by way of qualified institutions placement (including one or more qualified institutional placements in tranches) ('QIP').
This year in February, KPI Green delivered a 1:2 bonus issue. The company allotted 2,00,94,203 equity shares having a face value of Rs.10/- each as bonus equity shares, in the ratio of One (1) equity share having a face value of Rs. 10/- each for every Two (2) existing equity share having face value of Rs. 10/- each.
KPI Green Energy Stock Analysis:
As per Trendlyne data, the fundamentals of KPI are positive to neutral with the exception of the price to equity ratio which is higher than its sector. Here are the following fundamentals:
- Stock Price rose 415.77% and outperformed its sector by 292.18% in the past year.
- Debt to Equity Ratio of 1 is less than 1 and healthy. This implies that its assets are financed mainly through equity.
- Interest Coverage Ratio is 3.99, higher than 1.5. This means that it can meet its interest payments comfortably with its earnings (EBIT).
- Return on Equity(ROE) for the last financial year was 19.34%, in the normal range of 10% to 20%.
- Promoter Share Holding stayed the same in the most recent quarter at 53.08%.
- Promoter Pledges stayed the same in the last quarter at 45.52%.
- Price to Earning Ratio is 69.48, higher than its sector PE ratio of 30.79.
For the full-year fiscal, KPI's revenue jumped to Rs 723.75 crore versus Rs 487.52 crore in FY23. While PAT was at Rs 103.71 crore in FY24 against Rs 78.39 crore in FY23.
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