Small Cap Green Energy Stock With Adani As Client Hits Upper Circuit Today; Rallies 2301% In 3-Yrs

The share price of Ahmedabad-based energy solution provider Zodiac Energy Ltd was locked in an upper circuit limit of Rs 324.20 per piece on BSE on Friday. Zodiac Energy shares traded at a new 52 Week High value 324.20 today. Before this, the stock touched Upper Circuit for more than three consecutive sessions on January 11, Jan 10, Jan 9 at Rs. 308.80, Rs 294.10, and Rs 280.10 respectively. This recent stock boom has resulted in a stunning 2301% gain over the last three-year period and 2976% in the last five years.

On January 3 this year, the company informed investors that it had signed Memorandum of Understanding (MOU) for Investment Intention with the Government of Gujarat in Vibrant Gujarat Investment Summit 2024 to bring a proposed investment of Rs 3,000 crore in the state of Gujarat over the next 5 years for setting up the solar power plants under feeder level solarization, group Captive, and Captive mode aligning with the progressive Gujarat Renewable Energy Policy 2023.

In an exchange filing on Jan 3, the company said, "The company has entered into Memorandum of Understanding (MOU) on January 03, 2024 for Investment Intention with Government of Gujarat in Vibrant Gujarat Investment summit 2024 to bring a Proposed Investment of INR 3000.00 Crore in the state of Gujarat over the next 5 years for Setting up the Solar Power Plants under Feeder level Solarization, Group Captive and Captive mode on Multiple Location under Gujarat RE policy 2023."

Following this announcement, the Zodiac Energy shares surged to the 5% upper circuit limit on Jan 3, reaching Rs 241.10 per share. Before this announcement, the company's shares consistently hit the upper circuit limit since December 26.

At 1:09 pm IST today, the share price of Zodiac Energy Ltd was spotted trading 4.99% higher at Rs 324.20 per share. At this price, the company has a market capitalization of Rs 474.42 crore.

Zodiac Energy Ltd stock price performance:

Zodiac Energy shares have demonstrated exceptional performance in recent years, delivering staggering returns to its shareholders. In the last six months, the stock has gained 156.39%, and Zodiac Energy shares have increased 133.91% in last three months. The last one-year and two-year return from the stock have increased 171.75% and 266.12% respectively.

Financials of the company:

In Q2FY24, the company's net profit jumped 80.48% (QoQ) at Rs 1.48 crore. However, in a year-on-year (YoY) comparison, the net profit saw a marginal decline of 9.7%.

The company's total revenue from operations stood at Rs 34.41 crore in Q2FY24, up 30% compared Rs 26.49 crore in Q2 FY23.

About Zodiac Energy Ltd:

Originally incorporated as "Zodiac Genset Private Limited" at Ahmedabad on May 22, 1992, Zodiac Energy Limited is an Energy Solution Provider company having experience of more than three decades in the majority of verticals of the power generation spectrum. Our spectrum of services includes Design, supply, installation, Testing, and Commissioning (EPC) and Operation and Maintenance (O&M) in short; we provide turnkey solutions from concept to commissioning of power plants.

The company has installed solar power plants for many prominent clients like Sun-Edison India Limited, Adani Group, Torrent Power Limited, Gujarat Energy Development Agency, Directorate of Lighthouse and Lightships Government of India (GOI), Indian Oil Corporation Limited to name a few. The company has served more than 11,000 customers and installed more than 130,000 KW solar power plants.