Power Generation Stock: 1:2 Bonus Shares, January 03 Record Date; High Potential Pick For 2025?

Leading KP Group company KPI Green Energy Limited had a 3% rise during early trading, reaching a day high of Rs 838.00. After closing at Rs 798.80 on Friday, the price of KPI Green's shares began at Rs 816.00 on Monday. Following the announcement of the record date of its 1:2 bonus shares, KPI Green Energy shares are under observation of the market watchers. KP Group was founded in 1994 by Dr. Faruk G. Patel and has since promoted sustainability by leading ground-breaking wind and solar energy projects, supporting India's green energy initiative.

KPI Green Energy Bonus Shares Record Date

Subject to shareholder approval, which will be secured through postal ballot, the company has set Friday, January 3, 2025, as the "Record Date" for determining the shareholders' eligibility to credit bonus equity shares of the company in a 1:2 ratio or in the proportion of 1 equity share of Rs. 5/- each for every 2 existing equity shares of Rs. 5/- each.

KPI Green Energy Financials

Consolidated revenues for the September 2024 quarter were Rs 359.68 crore, rising 67.24% from Rs 215.07 crore for the September 2023 quarter, according to the company's website. Its net profit increased 100.99% from Rs. 34.75 crore in Q2FY24 to Rs. 69.83 crore in Q2FY25. EBITDA surged by 87.93% from Rs. 72.05 crore in the quarter ending in September 2023 to Rs. 135.40 crore in the quarter ending in September 2024.

KPI Green Energy Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "KPIGREEN is currently trading within the Rs 810-Rs 825 range, showing signs of recovery after a prolonged downtrend and entering a consolidation phase. The stock appears poised for a potential breakout above the resistance level near Rs 840, which could confirm a bullish trend reversal. It is currently trading above the 20-day EMA, which serves as immediate support, and has recently crossed the 50-day EMA, a bullish signal. Additionally, it is nearing the 100-day EMA, further indicating strengthening technical momentum. The 200-day EMA continues to act as a robust long-term support, reinforcing the stock's technical resilience. Sustained bullish momentum could drive the stock to a near-term target of Rs 900."

"On the downside, immediate support lies around Rs 800 and Rs 790, offering potential entry points for investors looking to buy on dips. The Relative Strength Index (RSI) at 52.20 reflects neutral momentum, consistent with the current consolidation phase. This suggests that the stock is neither overbought nor oversold, providing room for further upward movement if bullish momentum persists. To mitigate risks, a stop-loss at Rs 770 is recommended to safeguard against any potential reversals," the analyst added.

"In summary, KPIGREEN presents a promising buying opportunity near support levels, provided a bullish reversal is observed. The technical setup suggests a favorable risk-to-reward ratio for investors targeting Rs 900, supported by prudent risk management strategies such as stop-loss placement. This outlook makes the stock an attractive option for medium-term trading and investment opportunities," Mandar Bhojane further commented.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.